Ghana has quickly become a top vacation destination for travellers from around the world. In recent years, Ghana has become a hub for tourism - known for its diverse culture, beautiful beaches, and rich history.This surge in popularity has brought many benefits to the country, both socially and economically. Since the inception of the Year of Return, in 2019,Ghana's growing popularity across the world has affected the economy in many positive ways. For those seeking a culturally enriching and authentic experience, Ghana is the place to be!
Ghana, however, is not only for vacations. For some in the diaspora, it provides a feeling of home. The rise in tourism has created a demand for more hotel rooms, vacation rentals, and other forms of accommodation. This has led to an increase in the purchase of new properties, both as an investment and for residential purposes for individuals looking to relocate or settle. The development of new properties has also led to the renovation of existing properties, which has helped to improve the overall quality of the housing stock in the country. Buying real estate in Ghana is a promising investment opportunity for several reasons.
Here are 5 reasons why one should consider investing in the Ghanaian real estate market:
Accelerated growth : According to the Ghana Investment Promotion Centre (GIPC), the real estate industry in Ghana has been growing at a steady rate of about 6% per year. This has been driven by increased demand for both residential and commercial properties. Demand is stable, especially in the high-end market. Based on figures from Broll Ghana, there have been about 85,000 residential property transactions, for both sales and rentals every year, over the past decade.
Affordable home prices: The cost of homes in Ghana is lower compared to other countries in the region. This makes it possible for many people to own their own homes, which in turn is driving demand for new housing developments.
Good returns on investment: Real estate in Ghana offers good returns on investment. According to the Ghana Real Estate Developers Association, rental yields can be as high as 6-8% per year, and capital appreciation can reach up to 20%.
Increasing foreign investment: There has been a steady increase in foreign investment in the Ghanaian real estate market in recent years. Investors from all over the world are recognizing the potential of the market and are looking to take advantage of the opportunities it presents. This influx of foreign investment has helped to boost the overall real estate market and has created more opportunities for foreign buyers as well. This allows individuals opportunities for capital financial gains and creating a legacy for themselves and their families.
Government initiatives: The middle class population in Ghana is growing, which is increasing the demand for housing and other real estate developments. This has caused the Government of Ghana to take several initiatives to promote the real estate sector such as implementing policies and infrastructure development. These steps are making it more accessible for investors to buy properties.. The government is keen to boost private sector engagement through different investment schemes to boost growth. The GIPC (Ghana Investment Promotion Centre) reports that Ghana has already moved from a more rural population to urban with more than half (50.9%) of the country’s population reported to be residing in urban localities according to the 2010 census. Currently almost 60% of Ghana’s population is urbanized. The UN Report indicates that 300 million new homes will be needed by 2030, or roughly 21 million new homes per year, thus bringing global demand to 100,000 new housing units each day.
Where to Invest
The Ghanaian property market offers a wide range of investment opportunities. This means that investors will be able to find something that suits their needs and preferences.There are many seasoned and new real estate development companies that could facilitate this process seamlessly. ColeWood Properties is one of such companies offering niche, affordable and luxurious houses for sale.
Here are a few ways that you can invest in Ghana
Land - Purchasing land and banking with the intention of developing it or selling it in the future provides a fantastic opportunity for investment.
Residential/Vacation Properties - Apartments, townhouses, and detached and semi-detached houses are a great investment opportunity. Having a great maintenance culture will ensure your investment appreciates in value over time.
Commercial Properties - Commercial properties in the real estate industry in Ghana refer to buildings or land that are used for business or investment purposes, such as offices, warehouses, and hotels. These properties can be rented or sold to generate income for the owner. Examples of commercial properties in Ghana include shopping malls, business centres, and commercial plots of land.
Retail Properties - Retail properties are used exclusively to market and sell consumer goods and services. Retail stores include everything from supermarkets, dry-cleaners, cafes, florists, pharmacies, bike shops, fashion stores and so on.
In conclusion, the real estate market in Ghana has seen robust growth and is turning out to be a promising investment opportunity.Affordable home prices will ensure good returns on investment. The initiatives taken by the government will give many in the diaspora access to the real estate market in Ghana.There will continue to be a plethora of opportunities for investments in this area.
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