• by George

Ghana’s real estate market offers exciting opportunities for astute investors seeking strong returns. By carefully analyzing key factors, you can pinpoint profitable neighbourhoods with the greatest potential for growth and profitability. In this post, we’ll delve into the top investment hotspots in Ghana and provide practical tips for successful property investing.

The Current Real Estate Investment Landscape in Ghana

Ghana’s property market has experienced consistent growth in recent years. According to Broll Ghana (2021), residential property values appreciated by an impressive 85% between 2010 and 2020. The real estate sector now contributes 12.5% to the country’s GDP (Ghana Investment Promotion Center, 2022). Notably, housing demand continues to outpace supply, particularly in urban centres, creating a favourable environment for investors.

 

Factors to Consider When Evaluating a Neighbourhood’s Investment Potential

To identify the most promising neighbourhoods for real estate investment, consider the following critical factors:

 

• Location: Look for areas in close proximity to business districts, major transportation links, and essential amenities.
• Infrastructure Development: Assess the presence and quality of roads, utilities, and public services in the neighbourhood.
• Economic Drivers: Investigate the major employers, industries, and commercial activities that contribute to the area’s economic vitality.
• Rental Demand: Analyze the population demographics and housing preferences to gauge the potential rental demand.
• Safety and Livability: Evaluate crime rates and community engagement to ensure a desirable living environment for tenants.

Top 5 Investment Hotspots in Greater Accra

Based on these criteria, here are the five most promising neighbourhoods for real estate investment in the Greater Accra region:

East Legon

East Legon is an upmarket area situated near Kotoka International Airport and the Accra Mall. It enjoys high rental demand from expatriates and professionals. According to Goldkey Properties (2022), the average house price in East Legon is GHS 850,000, with a projected 5-year growth rate of 45% (Broll Ghana, 2021).

Cantonments

Cantonments is a premium neighbourhood that hosts various government institutions and embassies. The limited availability of land in this area supports significant price appreciation. MeQasa (2023) reports an average house price of GHS 720,000, with a projected 5-year growth rate of 38% (Northcourt Real Estate, 2022).

Labone

Labone is an established middle-class suburb with excellent transport links. It is currently undergoing gentrification, with luxury developments like The Madison by Landmark Homes leading the way. The average house price in Labone is GHS 650,000 (Tonaton, 2022), and Broll Ghana (2021) projects a 5-year growth rate of 33%.

Airport Residential

Airport Residential is an exclusive enclave near Kotoka International Airport. High-end apartments in this area are in high demand, with limited supply. MeQasa (2023) reports an average apartment price of GHS 590,000, and Northcourt Real Estate (2022) projects a 5-year growth rate of 28%.

Spintex Road

Spintex Road is a developing area with improving infrastructure. The planned construction of an industrial park is expected to drive employment and housing demand in the neighbourhood. The average house price on Spintex Road is GHS 480,000 (Tonaton, 2022), with a projected 5-year growth rate of 25% (Broll Ghana, 2021).

Due Diligence Checklist for Real Estate Investment

Before investing in these hotspots, it’s crucial to conduct thorough due diligence. Here’s a checklist to guide your research:

 

• Verify land titles and planning permissions to ensure the legality and feasibility of the investment.
• Inspect the property’s condition and assess the impact of surrounding developments on its value.
• Analyze market comparables to determine appropriate pricing and potential returns.
• Review existing tenancy agreements and occupancy rates to understand the property’s current performance.
• Understand the tax liabilities and ownership structure associated with the investment.
• Engage local experts, such as real estate agents and lawyers, for on-the-ground insights and guidance.

Potential Risks and Challenges

While Ghana’s real estate market offers significant opportunities, investors should be aware of potential risks and challenges, including:

 

• Land disputes and fraud
• Construction delays and cost overruns
• Economic downturns impacting rental demand
• Oversupply in certain market segments
• Regulatory changes affecting foreign ownership

Conclusion

Ghana’s real estate market presents exciting opportunities for investors seeking profitable returns. By focusing on the top investment hotspots, such as East Legon, Cantonments, Labone, Airport Residential, and Spintex Road, and conducting thorough due diligence, investors can maximize their chances of success.

Frequently Asked Questions (FAQs)

• Can foreigners buy property in Ghana?

Yes, foreigners can purchase property in Ghana, but there are specific lease terms, purchase amounts, and visa conditions to consider.

• What is the average rental yield in Ghana?

Rental yields in Ghana typically range from 8% to 12%, depending on the location and property type.

• How do I find a trustworthy lawyer and real estate agent in Ghana?

Seek referrals from reputable firms like Landmark Homes, which have established networks and experience in the Ghanaian real estate market.

• What are the typical property purchase costs in Ghana?

In addition to the property price, expect to pay between 5% and 7% in taxes, legal fees, and registration charges.

• How long does the property transfer process take in Ghana?

With all requirements fulfilled, the property transfer process typically takes between 3 and 6 months.

 

Take your next step in Ghana’s thriving real estate market with Landmark Homes. We offer exclusive developments in prime locations and have a proven track record of delivering strong returns for discerning investors. Contact us today to explore investment opportunities in these neighbourhoods and beyond.