• by George

Accra’s dynamic real estate market is brimming with opportunities for savvy investors, both local and international. As the city continues to grow and evolve, certain neighbourhoods are emerging as hotspots for property investment. In this post, we’ll explore these emerging neighbourhoods in Accra, analyze the factors driving their growth, and provide insights to help you make informed real estate investment decisions in Ghana.

Current Real Estate Market Trends in Accra 

Accra’s property market has shown impressive resilience and consistent growth in recent years. Despite global economic challenges, demand for quality housing remains high, driven by a growing middle class, urbanisation, and an influx of foreign investors. According to the Bank of Ghana, the country’s real estate sector grew by 4.7% in 2022, outpacing the overall economic growth rate.

This growth is expected to continue, with the Ghana Investment Promotion Centre projecting a 5.8% annual growth rate for the real estate sector over the next five years. This positive outlook is underpinned by several factors, including the government’s focus on infrastructure development, the expanding hospitality and tourism industry, and the increasing demand for modern, high-quality residential and commercial properties.

Emerging Neighbourhoods in Accra with High Growth Potential

• Tema Community 25 

Located just east of Accra, Tema Community 25 is emerging as a prime destination for property investment. This well-planned suburb boasts excellent infrastructure, including wide roads, reliable electricity, and a modern drainage system. The area’s proximity to the Tema Industrial Area and the Tema Port, Ghana’s largest seaport, makes it an attractive choice for professionals working in these economic hubs.

Tema Community 25 offers a range of housing options, from affordable apartments to luxurious villas, catering to various investor profiles. The neighbourhood’s well-maintained green spaces, recreational facilities, and growing retail scene further enhance its appeal to potential buyers and renters.

• East Legon 

East Legon, situated northeast of Accra’s city centre, is another neighbourhood with tremendous investment potential. This affluent residential area is known for its high-end properties, serene environment, and easy access to top-notch amenities such as schools, hospitals, and shopping centres. The ongoing expansion of the Accra-Tema Motorway is set to further enhance East Legon’s connectivity and drive property values higher.

East Legon’s reputation as a prestigious address, combined with its strategic location and growing infrastructure, makes it an attractive option for investors seeking capital appreciation and stable rental income. The area’s popularity among expatriates and high-net-worth individuals ensures a consistent demand for quality housing.

Driving Factors behind Emerging Neighborhood Growth 

Several key factors contribute to the growth and investment potential of these emerging neighbourhoods:

• Infrastructure Development: 

Ongoing government and private sector investments in roads, utilities, and public amenities are transforming these areas into well-connected, livable communities. Projects such as the Tema Motorway Interchange and the Tema-Akosombo Railway Line are set to boost connectivity and economic activity in the surrounding areas.

• Proximity to Commercial Centers: 

Easy access to major business districts, industrial areas, and transportation hubs makes these neighbourhoods attractive to professionals and businesses alike. For instance, Tema Community 25’s proximity to the Tema Industrial Area and the Tema Port ensures a steady demand for housing from workers in these economic zones.

• Growing Middle Class: 

Ghana’s expanding middle class is driving demand for quality housing in well-planned, secure neighbourhoods. As disposable incomes rise, more Ghanaians are seeking properties that offer comfort, convenience, and a sense of community. Emerging neighbourhoods like Tema Community 25 and East Legon are well-positioned to cater to this growing demographic.

• Favourable Government Policies: 

The Ghanaian government’s efforts to create a conducive environment for real estate investment, such as the National Housing Policy and the Ghana Infrastructure Investment Fund, are boosting investor confidence and driving growth in the sector.

Property Types and Investment Potential 

In Tema Community 25 and East Legon, investors can find a range of property types to suit different budgets and investment strategies:

• Apartments: 

High-quality apartments are in strong demand, catering to young professionals, small families, and expatriates. These properties offer steady rental income and the potential for capital appreciation. In Tema Community 25, for example, a well-designed two-bedroom apartment can generate monthly rental yields of 8-10%.

• Townhouses and Villas: 

Luxurious townhouses and villas are popular among affluent buyers and renters, providing a premium living experience and strong returns for investors. In East Legon, a well-appointed four-bedroom townhouse can command monthly rents of $2,500-$3,500, translating to annual yields of 9-12%.

• Land Parcels: 

Purchasing land in these emerging neighbourhoods can be a lucrative long-term investment strategy, as property values are expected to rise significantly in the coming years. Investors can acquire land parcels and develop them into residential or commercial properties, or hold them for future appreciation.

Upcoming Developments and Their Impact 

Several notable projects are set to reshape Accra’s real estate landscape and boost property values in emerging neighbourhoods:

• Accra-Tema Motorway Expansion: 

The ongoing expansion of this critical artery will improve connectivity between Accra and Tema, benefiting nearby neighbourhoods like East Legon. The enhanced accessibility is expected to drive demand for properties in the area, pushing up values and rental yields.

• Oil & Gas Enclave Redevelopment: 

The planned redevelopment of the Oil & Gas Enclave in Takoradi is expected to drive demand for quality housing in surrounding areas, including Tema Community 25. As more professionals move to the area to work in the oil and gas sector, the demand for well-designed, modern housing will increase, creating opportunities for investors.

Rental Demand and Occupancy Rates 

Emerging neighbourhoods like Tema Community 25 and East Legon are experiencing strong rental demand, with occupancy rates above 90% for well-maintained properties. The influx of professionals, expatriates, and families into these areas ensures a steady stream of potential tenants for investors.

In Tema Community 25, the average occupancy rate for apartments is around 92%, while townhouses and villas enjoy even higher occupancy rates of 95% or more. East Legon’s rental market is similarly robust, with occupancy rates hovering around 90% for apartments and 95% for high-end properties like townhouses and villas.

Tips for Identifying and Evaluating Properties 

When considering a property investment in an emerging neighborhood, keep these tips in mind:

• Work with a reputable real estate developer or agent who has in-depth knowledge of the local market and can guide you towards the best investment opportunities. Their expertise can help you navigate the complexities of the Ghanaian real estate market and make informed decisions.
• Conduct thorough due diligence on the property, including legal and structural checks, to avoid potential pitfalls. Verify the ownership history, ensure that all necessary permits and approvals are in place, and assess the property’s condition through professional inspections.
• Consider the location, accessibility, and surrounding amenities to ensure the property aligns with your investment goals and target tenant profile. Properties with easy access to major roads, public transportation, schools, hospitals, and shopping centres are more likely to attract tenants and command higher rents.
• Analyze market data, rental yields, and growth projections to make an informed decision. Look at historical price trends, compare rental rates for similar properties in the area and factor in the potential impact of upcoming developments on property values.

At Landmark Homes, we are committed to helping investors navigate Ghana’s exciting real estate market. Our team of experienced professionals can guide you through the entire investment process, from identifying the right property to managing your investment for optimal returns. Contact us today to explore how we can help you achieve your real estate investment goals in Ghana.

Frequently Asked Questions (FAQs)

• What makes Tema Community 25 and East Legon attractive for property investment? 

These neighbourhoods offer a compelling combination of well-planned infrastructure, proximity to commercial centers, and strong rental demand, making them ideal for investors seeking steady returns and capital appreciation. Their growing popularity among professionals, families, and expatriates ensures a consistent demand for quality housing.

• What types of properties are available in these emerging neighbourhoods? 

Investors can find a range of properties, including apartments, townhouses, villas, and land parcels, catering to different budgets and investment strategies. Whether you’re looking for a turnkey rental property or a plot to develop, these neighbourhoods offer diverse investment opportunities.

• How can I ensure I’m making a sound investment in an emerging neighborhood? 

Work with a trusted real estate developer or agent, conduct thorough due diligence, and analyze market data to make an informed decision. Landmark Homes can guide you through this process, providing expert advice and support at every stage of your investment journey.

• What rental yields can I expect from properties in these areas? 

Well-maintained properties in Tema Community 25 and East Legon can generate rental yields of 8-12%, depending on the property type and location. Apartments typically offer yields of 8-10%, while townhouses and villas can generate yields of 9-12% or more.

• How can Landmark Homes assist me with my property investment in Ghana?

 Landmark Homes offers a comprehensive range of services, including property sourcing, due diligence, and management, to help investors navigate Ghana’s real estate market and achieve their goals. Our team can help you identify the best investment opportunities, assess their potential, and manage your properties for optimal returns.