5 questions you should ask your Ghanaian luxury real estate developer

When it comes to buying real estate in Ghana, there’s a saying: “The customer is always right.” Here, many developers take that sentiment even further, aiming to fulfil every wish a buyer might have. The property market is thriving, with developers transforming Ghana’s skyline with impressive architectural projects and investing in exceptional customer experiences.

However, don’t let the stylish offices and warm hospitality sweep you off your feet just yet. It’s crucial to ask key questions to ensure you’re making the right investment decisions. Real estate in Ghana has its unique aspects, distinct from what you might expect in other markets. That’s why it’s always wise to work with a professional real estate agent who understands the local nuances. In fact, as regulations advance, partnering with an agent may soon become a requirement—so why not get a head start?

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Here are a few essential questions to ask your luxury real estate developer before paying that reservation fee.

What’s the lease on my apartment?

In Ghana, land is typically sold through a leasehold system, which means you don’t fully own the land but instead lease it from the original or allodial owner for a set period. If you’re a Ghanaian citizen, you may be eligible for a lease of up to 99 years in most areas. However, prime locations like Cantonments and Airport Residential Area offer a maximum lease of 50 years, regardless of citizenship. Foreign buyers are also generally limited to 50-year leases.

When developers acquire land for a project, they may start with a 50-year lease. If they spend around three years building, by the time the property is ready for handover, the lease term has already decreased by those construction years. This can affect your long-term investment, so it’s important to know the remaining lease term before committing.

It’s also wise to discuss lease renewal terms with the developer. Typically, the cost of renewing the lease is divided among all the units in a property. For instance, if the land’s renewal cost is $1 million on a 50-unit apartment complex, each resident might expect to pay around $20,000 to extend the lease for another 50 years.

In some cases, developers may acquire land with less than 30 years left on the lease. This should always be disclosed upfront, allowing you to plan financially for future renewals and protect your investment. 

What are the charges after completion?

Once you move into your new apartment, you’ll encounter a variety of ongoing bills, so it’s essential to discuss these costs with the developer before you make a commitment. Beyond basic utilities like electricity, water, and internet, there are often additional fees for amenities and services that can quickly add up. These might include charges for swimming pool maintenance, concierge services, security, waste disposal, property rates, taxes, and cleaning fees.

It’s wise to get a full breakdown of any fees you’ll need to cover as a resident. For example, some developers charge around $200 per month to manage the property on behalf of tenants. Knowing these costs upfront will help you plan your budget effectively and avoid surprises down the road.

When can I move into my apartment?

Construction is a highly intricate process involving professionals across multiple fields. While most developers will give you an estimated completion date, it’s worth noting that in Ghana, around 50% of developers may struggle to meet these timelines. Delays often arise from factors beyond their control, such as shipping issues, prolonged government approvals, or even delayed payments from clients.

This makes communication crucial. Pay close attention to how responsive and transparent the developer is in your interactions. Do they provide prompt, clear updates and explain any challenges they encounter? It’s also wise to research their history with project timelines to get a sense of their reliability.

Having a trusted real estate agent on your side is invaluable for these insights. An agent brings an impartial, professional perspective, helping you navigate the process and hold developers accountable.

Is this your first project?

Ask if the development you’re considering is the first of its kind for the developer. Constructing a bungalow is vastly different from a 10-story luxury apartment complex, so it’s essential to gauge their experience in high-end real estate. In some cases, new companies may have executives with a solid track record from other prominent developments. New developers often offer competitive deals to break into the market, which can be appealing.

However, it’s wise to research thoroughly to understand who’s behind the project. While new doesn’t necessarily mean inexperienced, you’ll want to ensure the team has the expertise needed to deliver on their promises. Avoid working with developers lacking any industry experience; instead, opt for those with proven executives and a strong professional background.

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What are the Payment Plans?

If you’re considering an off-plan project, one of the advantages is the flexibility of payment plans. Most developers will offer a schedule that aligns with the project’s expected completion, allowing you to spread out payments as construction progresses. However, make sure this plan fits your financial needs and, if necessary, discuss any adjustments with the developer.

It’s also important to meet your payment deadlines to stay in good standing with your agreement. At the same time, avoid paying the full amount upfront—even if you have the funds—to minimize your risk. Phased payments provide a layer of security, ensuring your investment is protected as the project advances.

If you found this information helpful, feel free to share it with a friend who might benefit! And if you’re looking for a knowledgeable real estate agent to guide you through Ghana’s complex property market, don’t hesitate to reach out. You can email us at info@housesforsaleinghana.com for expert assistance every step of the way.