resale buying apartments

January 24, 2024

Purchasing an apartment in Ghana can be an excellent investment if you make the right considerations regarding resale value and appreciation. With the growing real estate market in cities like Accra, investing in luxury apartments represents a unique opportunity to gain from rising property values over time. However, not all apartments are created equal when it comes to their potential for appreciation. You must evaluate key factors that impact resale value to ensure your investment pays off in the long run. This article will guide you through crucial considerations when assessing the resale value and appreciation potential of apartments in Ghana.

Location Sets the Foundation for Value

The old adage “location, location, location” rings true when determining an apartment’s resale value. Where the apartment is situated impacts the demand, desirability, and ultimately the price it can fetch on the resale market. Consider the following location factors:

Accessibility

Easy access to major roads, public transit, shopping centres, restaurants, schools, healthcare facilities and other amenities will make your apartment more attractive to buyers. Being situated in bustling central neighbourhoods like Airport Residential Area or East Legon puts you close to Accra’s commercial hubs.

Socioeconomic Profile

Properties in neighbourhoods with higher income residents, security, and social prestige hold value better. Areas like Cantonments and Labone long have been sought-after addresses.

Growth Opportunity

Emerging areas like Tema Community 25 or Sakumono are seeing new development, providing an opportunity to benefit from value growth. Identify neighbourhoods poised for revitalization.

Surrounding Developments

Proximity to office complexes, hotels, public parks and other recent developments indicates neighbourhood investment and increasing property values.

Building Quality Matters

Even in prime locations, buildings with cheap materials, poor construction and lacklustre amenities will not appreciate substantially. Examine these markers of quality:

Construction Materials

High-grade finishes like granite countertops and imported floor tiling along with solid concrete or steel structures indicate durability.

Building Features

Look for apartments with features like high ceilings, spacious balconies, high-speed elevators, backup generators and AC systems, swimming pools and gyms.

Security Infrastructure

Controlled access gates, 24-hour security guards, and surveillance cameras add to a building’s value perception.

Sustainability

LEED-certified or other eco-conscious buildings with solar power, water conservation systems and green spaces will become more desirable.

Brand Reputation

Renowned developers known for premium projects gain buyer trust more than unknown builders. Choose reputed firms like Landmark Homes.

Unit Attributes Impact Value

Even within the same building, units can vary substantially in resale value based on these attributes:

Size

Larger apartment sizes tend to hold and gain value better, especially 3-bed options, so size up.

Views

Scenic vistas over gardens, the cityscape or landmarks translate to higher prices per square foot.

Floor Level

Apartments on higher floors with better views, privacy and security tend to appreciate more.

Layout

Open, flowing floor plans with roomy, well-defined spaces are preferable over cramped designs.

Natural Lighting

Sunny apartments with big windows and balconies are a hot commodity on resale and fetch higher prices.

Finishes

Upgraded fixtures, built-ins, lighting and appliances boost value compared to basic options.

Current and Future Supply and Demand

Before buying, analyze the current real estate landscape and projections to gauge where prices are headed. If many new developments are in the pipeline while demand remains flat, appreciation could stagnate. Research supply and demand trends for the neighbourhood and segment (luxury, mid-range, budget, etc) you are targeting.

Historical Price Trends

Past price movements in the neighbourhood can indicate what you might expect in the future. Healthy, consistent upward trends over the past 5-10 years signal solid appreciation potential moving forward. Be wary of areas with major value drops or flat prices stagnating.

Buy at the Right Time

Aim to buy when the market has stabilized from a dip or pause in a climbing market. Entering in a depressed market poised for recovery or on an upward swing sets you up for gains. Avoid buying at the peak with steep prices when the market is overheated and headed for a cooldown.

Holding Period Matters

The longer you hold, the more opportunity for value appreciation, so don’t plan on flipping quickly. Set a timeline of 10+ years if possible, allowing you to ride out market dips. Properties held short-term are also subject to higher taxes when sold.

Renovations Can Boost Resale Value

Consider minor renovations to modernize, like contemporary wall colours and updated lighting fixtures. Kitchen and bathroom overhauls often provide excellent returns on dollars invested. Just don’t over-improve for the neighbourhood.

Conclusion

Buying an apartment in Accra, Ghana offers an opportunity to gain value. However, to maximize your investment returns through resale or appreciation, you must research and analyze the property meticulously before purchasing. Partnering with a reputable real estate developer like Landmark Homes provides insider expertise. Their flagship development, The Madison, brings together an elite location, structural quality, resort-style amenities and exquisite residences offering strong value growth potential. With knowledge of critical factors like neighbourhood, construction, supply and demand, along with smart timing, you can make an apartment purchase that will appreciate handsomely over time.

Reach out to the experts at Landmark Homes Ghana to learn more about available inventory at The Madison and how to identify value drivers when buying your luxury apartment. Their seasoned team can provide insights on the Accra real estate market and guide you to smart investments with strong returns. Partner with Landmark Homes and invest wisely in one of Accra’s most prestigious new developments, purposefully designed to deliver enduring value.

Frequently Asked Questions About Buying an Apartment in Ghana for Resale Value and Appreciation

What areas of Accra have seen the highest apartment price appreciation in recent years?

The prime residential enclaves of Airport Residential Area, Cantonments, and East Legon have experienced strong consistent price appreciation for luxury apartments over the past 5-10 years due to high demand. Emerging areas like Tema and Sakumono offer opportunities for higher future growth.

How important is the reputation of the developer when considering resale value?

The brand reputation of the developer matters immensely, as buyers have more trust in premium projects from established firms known for quality like Landmark Homes versus unknown developers.

What size apartment has the greatest resale value potential?

Three-bedroom apartments generally gain value better than smaller units, so consider purchasing the largest apartment within your budget to benefit from greater appreciation over time.

What factors impact appreciation besides location?

Building quality, unit attributes like layout and finishes, supply/demand dynamics, historical price movements, and holding period are key factors along with location.

How long should I plan to hold my apartment to maximize returns?

It’s best to hold for 10+ years to allow for market ups and downs and capture more value growth versus flipping in the short term. Holding for shorter periods also incurs higher taxes when sold.

Posted in: Apartments

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