Ghana is one of the few countries in Africa that keeps becoming an attractive destination for foreign investors and local real estate investors. So it is not surprising to see investors looking to diversify their investment portfolio consider Ghana as a favorable choice.
Real estate investment in Ghana is experiencing an upward turn due to the country’s growing economy, favorable government policies, and stable political environment which has created a conducive atmosphere for real estate investment.
In this blog post, we discuss why real estate investment in Ghana can be a smart choice for investors looking to diversify their portfolios and gain a steady income flow.
What Is Real Estate Investment In Ghana
Real estate investment in Ghana involves buying, owning, managing, renting, or selling real estate properties to make a profit.
The investments can be done directly by purchasing a property or indirectly by investing in a Real Estate Investment Trust (REIT).
REIT is a collective scheme that invests in real estate directly. It allows REITs to be traded like shares so real estate investors can buy shares and indirectly invest in real estate in Ghana. Currently, The Republic Bank, previously HFC Bank, is the only licensed Real Estate Investment Trust in Ghana since it was established in 1995.
Can anyone invest in real estate in Ghana?
Absolutely. Real estate investment in Ghana is open to everyone. Apart from Ghanaians, non-Ghanaians can also invest in real estate properties. However, the laws are a little different for non-Ghanaians.
For starters, lands are not outrightly sold in Ghana, lands are sold on a leasehold, and for non-Ghanaians, you can own land for 50 years with the option to renew after it expires.
To make owning real estate easy for investors, OWNHM offers real estate property listings for buyers and tenants. We also work with registered real estate agents to help get you the property that suits your investment goals.
Types Of Real Estate Properties In Ghana With Investment Potential
There are various types of real estate properties, each with its unique characteristics, purposes, and investment potential. Real estate properties in Ghana include:
Residential Properties As Real Estate Investment In Ghana
These are properties used for residential purposes. Properties like estate houses, townhouses, apartments, and condominiums. Residential properties are typically used for living and can provide a steady rental income for investors. In Ghana, residential properties tend to cost more in exclusive gated communities like Trassaco, and in neighborhoods like Cantonments, Airport Hills, and East Legon Hills.
Commercial Properties As Real Estate Investment In Ghana
These are properties used for commercial purposes, such as office buildings, retail stores, shopping centers, and warehouses. Commercial properties such as the Accra Mall, West Hills Mall, Takoradi Mall, and other shopping centers are typically used for business and they can provide a steady flow of rental income and capital appreciation to investors. Places like Dzorwulu are known to be commercial hubs due to the high rise in commercial properties like office buildings.
Mixed-Use Properties As Real Estate Investment In Ghana
Mixed-use properties are properties that combine both residential and commercial use, such as apartment buildings with retail spaces on the ground floor. Such properties are mostly common with big apartment buildings like Villagio and Eden Heights where property owners want to add retail stores as a means of convenience for the tenants.
Industrial Properties As Real Estate Investment In Ghana
These are properties for manufacturing, production, and storage purposes, such as factories, warehouses, and distribution centers. Industrial properties can be found in areas that are localized for processing or manufacturing. Areas such as Tema Heavy Industrial Area, Spintex, Light Industrial Area, Kaneshie Industrial Area, and Appolonia Industrial Area.
Agricultural Properties As Real Estate Investment In Ghana
These are properties used for agricultural purposes, such as farmlands and ranches. Ghana has rich fertile lands that support farming activities which means you can generate income from crop production should you choose to invest in farmlands. Alternatively, you can also earn from livestock breeding. And since such lands aren’t mostly in urban areas, they tend to cost a lot less.
Special Purpose Properties As Real Estate Investment In Ghana
These are properties used for specific purposes, such as hotels, hostels, film studios, and event centers. An example of a special-purpose property is the City Hills Event Center at Kasoa. The property has an elegant environment purposely for events.
Why Real Estate Investment In Ghana Is A Smart Choice
Having seen the various types of real estate properties in Ghana, let’s now delve into the top reasons why real estate investment in Ghana is worth considering especially if you looking to diversify your investment portfolio.
1. Stable and Growing Economy
Ghana has over the decade been one of the fastest-growing economies in Africa. This growth has been fueled mostly by a stable political environment, favorable government policies, and a thriving private sector. A major part of this growth can also be attributed to the land’s wealth in natural resources like gold and the discovery of oil.
As a result, Ghana has attracted significant foreign investment and created a vibrant real estate market. Real estate investment in Ghana thus offers you the advantage of having your investment in a stable economy with growth potential.
2. Favorable Government Policies
The Ghana government has over the past years implemented several policies to support real estate investment in Ghana. For instance, as a solution to curb the housing deficit we have in Ghana, the government offered to give free land and tax incentives to real estate developers who were willing to build affordable housing for Ghanaians.
Following this policy, VAAL Real Estate Limited took up this offer to build the Harmonia Residence which are apartment buildings that are being sold out.
Also, the creation of Real Estate Trust Funds (REITs) governed by Securities Amendment Law 2000 (Act 590) and regulated by the Securities and Exchange Commission allows investors to invest in real estate through a collective scheme. This has resulted in more real estate investment in Ghana thus growing the industry.
3. Stable and Predictable Legal Framework
Real estate investment in Ghana is quite straightforward provided you have the right insight and an acceptable means of financing your investment. Ghana has a well-established land registry system and recent policies by the government attempt to have a digitized land registry which means investors can easily track and verify whether the land they intend to purchase has no litigation.
To be able to easily move forward with your real estate investment in Ghana, we advise you to work with registered industry professionals like real estate agents, lawyers, and property managers. Industry professionals such as the real estate agents on our website have experience, skills, and insights that can help you navigate the real estate market faster.
4. Affordable Property Prices
Comparing Ghana to other African countries, Ghana offers relatively affordable property prices. While luxurious properties like the ones we have on our website, OWNHM, in some exclusive areas like Cantonments, East Legon Hills, and Airport Residential can be expensive, there are still many options for budget-conscious investors.
It is quite possible to get a house to buy with a budget of $80,000 in a decent neighborhood that you can use for rental purposes.
Also, with the recent introduction of mortgage financing from banks like Ecobank, Absa, Stanbic Bank, and Republic Bank, it is becoming easier for investors to access affordable financing for real estate investment in Ghana.
5. High Rental Yields
Another good reason for you to consider real estate investment in Ghana is the high rental income it offers. Ghana’s rental market offers attractive yields between 8-10% annually for investors.
This high rental yield is driven by the increasing demand for quality housing in urban areas like Accra and Kumasi, especially among the middle class. Additionally, the country’s oil and gas industry has created a demand for high-end rental properties in areas like Takoradi and Tema, attracting expats and corporate tenants.
To check out some of these high-end rental properties, check our rental listings on the OWNHM website. We focus on helping real estate investors and tenants get the best luxury properties in Ghana. These listings are all exclusive properties that will potentially yield high income for their owners.
6. Large And Growing Middle Class
Ghana’s middle class is growing rapidly, creating a strong demand for quality housing in urban areas like Accra. The middle class is expected to keep growing in the coming years, providing a stable and growing market for real estate investors.
This means that real estate investment in Ghana is going to be continually profitable especially with the majority of the population being young and dynamic. As more people move to urban cities for education and work, the demand for rental properties is expected to increase.
7. Growing Tourism Industry
Tourism offers great opportunities for countries like Ghana and with a growing tourism industry, Ghana can expect more opportunities in terms of investments and jobs from people all over the world.
Current opportunities from tourism have led to an increase in demand for short-term rentals and vacation properties, providing an excellent opportunity for real estate investors.
With more people visiting Ghana for business and leisure, the demand for properties like the Belton Residence in Aburi, which is perfect for vacation homes and short-term rentals is expected to continue rising.
Real estate investment in Ghana can be a smart choice for expats, locals, and foreign investors looking to diversify their investment portfolio and earn a steady income.
By working with industry experts such as real estate agents listed on our website, you can get the right insight and information on the real estate market in Ghana so you can easily navigate the market.
If you are considering real estate investment in Ghana, we advise you always conduct due diligence on any type of property you would like to invest in before making a decision. Also, check out our tips for a successful real estate investment in Ghana.
Looking for exclusive houses and apartments to buy? Check out our listings of houses and apartments for sale.