June 23, 2025
In Ghana’s rapidly evolving real estate landscape, off-plan property investment has emerged as an increasingly popular option for homebuyers and investors alike. But what exactly is off-plan property, and does it represent a smart financial move in the Ghanaian market? This comprehensive guide will walk you through everything you need to know about this investment strategy, helping you make informed decisions about your property portfolio.
What Is Off-Plan Property?
Off-plan property refers to real estate that is purchased before construction is completed, often when the project exists only as architectural plans, 3D renderings, and developer commitments. Buyers essentially invest in the promise of a future property, typically securing it with a reservation fee followed by structured payment instalments throughout the construction period.
In Ghana’s urban centres, particularly Accra, this investment approach has gained significant traction as developers respond to growing housing demands with modern, amenity-rich developments designed to appeal to the country’s expanding middle and upper classes.
Why Off-Plan Property Is Gaining Popularity in Ghana
Ghana’s property market has witnessed remarkable growth in recent years, driven by several key factors:
Rapid Urbanisation:
As more Ghanaians move to cities for economic opportunities, demand for quality housing continues to rise, particularly in Accra and other major urban centres.
Growing Middle Class:
An expanding demographic of professionals with disposable income is seeking modern living spaces that reflect their aspirations and lifestyle.
Diaspora Investment:
Ghanaians living abroad are increasingly looking to secure property in their homeland, with off-plan options providing a manageable pathway to ownership from afar.
Limited Housing Supply: The significant housing deficit in Ghana has created opportunities for developers to meet demand with new construction projects.
Benefits of Buying Off-Plan Property
1. Cost Advantages and Below-Market Pricing
Perhaps the most compelling benefit of off-plan purchases is the price advantage. Developers typically offer early-bird discounts to generate initial sales momentum and secure project financing. These discounts can range from 10-30% below the anticipated completion value, representing significant savings.
2. Capital Appreciation Potential
The period between purchase and completion—often 18 to 36 months—provides a window for natural market appreciation. In high-demand areas of Accra like Labone, Airport Residential, or Cantonments, property values have historically appreciated by 5-10% annually, meaning your investment could gain value before you even receive the keys.
3. Flexible Payment Structures
Most off-plan developments offer structured payment plans that ease the financial burden compared to outright purchases. For example, Landmark Homes’ developments typically offer payment schedules spread over the construction period:
- Reservation Fee: U$5,000
- First Payment: 25% within the first month
- Subsequent payments: Staggered at 15-20% intervals
- Final Payment: 10% upon completion
Alternatively, mortgage options are available requiring 30% down payment with the remaining 70% financed upon completion.
4. Customisation Opportunities
Buying early in the development process often allows for customisation options not available with completed properties. From floor plans to finishes, early investors can sometimes influence design elements to suit their preferences.
Risks and Challenges of Off-Plan Investment
Despite its benefits, off-plan property investment carries inherent risks that potential buyers should carefully consider:
1. Construction Delays and Completion Uncertainties
Construction timelines in Ghana can be affected by various factors, including material shortages, regulatory approvals, labour issues, and even weather conditions. These delays can impact your investment timeline and return projections.
2. Developer Credibility Concerns
The Ghanaian market has seen cases of unscrupulous developers who collect payments but fail to deliver completed properties to the promised specifications, or at all. Developer reputation and track record are critical considerations.
3. Quality and Specification Deviations
The finished property may not always match the glossy renderings and promised specifications. Materials, finishes, and amenities can sometimes be downgraded during construction to cut costs.
4. Regulatory and Legal Risks
Ghana’s real estate regulatory framework continues to evolve. Ensuring proper land titles, building permits, and environmental approvals are in place is essential to avoid legal complications.
How to Mitigate Risks When Buying Off-Plan
1. Conduct Thorough Due Diligence
Research the developer’s track record, completed projects, and reputation in the market. Established developers like Landmark Homes with a portfolio of successful projects (such as The Madison and Sapphire in Labone) typically present lower risk profiles.
2. Scrutinise Legal Documentation
Have a qualified real estate attorney review all contracts before signing. Pay special attention to:
- Payment schedules and refund policies
- Completion deadlines and penalty clauses
- Specifications and quality guarantees
- Developer’s right to make alterations
3. Verify Project Approvals
Ensure the development has secured all necessary approvals from relevant authorities, including:
- Land title verification
- Building permits
- Environmental clearances
- Utility connections
4. Stage Your Payments Strategically
Link your payment schedule to construction milestones whenever possible. This creates accountability and ensures you’re not overexposed financially if development stalls.
Is Off-Plan Property a Good Investment in Ghana?
When approached with proper due diligence and risk management, off-plan property can be an excellent investment in Ghana’s growing real estate market. Here’s why:
Price Appreciation:
Properties in prime Accra locations like Labone have shown consistent value appreciation over time.
Rental Potential:
High-quality developments with desirable amenities like those offered by Landmark Homes (including 24/7 security, concierge services, swimming pools, and fitness facilities) can command premium rental rates, potentially yielding returns of 8-12% annually.
Portfolio Diversification:
Real estate provides a tangible asset that historically performs differently than stocks or bonds, helping diversify investment portfolios.
Long-term Value:
Quality developments in good locations tend to maintain their value even during market fluctuations.
The key is selecting developments from reputable developers with proven track records. Projects like Landmark Homes’ Sapphire in Labone exemplify the kind of high-quality, well-located development that tends to perform well as an investment.
Frequently Asked Questions About Off-Plan Property Investment
What documents should I verify before buying off-plan property in Ghana?
Always verify land title documentation, building permits, environmental approvals, and the developer’s business registration. A qualified real estate attorney should review the sale agreement, payment schedule, and completion timeline guarantees.
How do flexible payment plans work with off-plan purchases?
Typical plans include a reservation fee followed by milestone payments throughout construction. For example, Landmark Homes offers structured payment plans with 25% down payment followed by smaller instalments, with the final payment upon completion.
What happens if the developer delays construction?
A well-drafted contract should include penalty clauses for significant delays. These may include interest payments, compensation, or, in extreme cases, refund options. Always ensure these protections are clearly defined in your purchase agreement.
Can I customise my off-plan property before completion?
Early buyers often have customisation options depending on the construction stage and developer flexibility. These might include layout modifications, fixture upgrades, or finish selections. Confirm these possibilities before purchase.
How do I assess if a developer is trustworthy?
Research their completed projects, speak with previous clients, visit their offices and construction sites, check their financial stability, and verify their industry affiliations. Established developers with multiple successful projects present lower risk.
Taking the Next Step with Confidence
Off-plan property investment in Ghana offers exciting opportunities when approached with careful research and proper guidance. The price advantages, payment flexibility, and appreciation potential make it an attractive option for both homebuyers and investors seeking to build wealth through real estate.
Interested in exploring secure and profitable off-plan property investments? Discover Landmark Homes’ latest developments in prime Accra locations, designed with quality and transparency to help you build wealth confidently. With signature projects like The Madison and Sapphire in Labone featuring spacious luxury apartments and world-class amenities, Landmark Homes exemplifies the kind of developer that delivers on its promises.
Contact Landmark Homes today to learn more about current off-plan opportunities and start your investment journey with confidence.