What’s Driving The Trend In Ghana’s Real Estate Market, 2024?
The real estate market in Ghana is projected to grow by 5.48% (2024-2028) resulting in a market volume of US$567.60bn in 2028. Ghana’s real estate market has been experiencing an uptick for quite a while now and has become a major contributor to the nation’s economy. This growth can be attributed to certain characteristic changes or “advancements” if I may put it. But what are they? Let’s ‘find out together, shall we?
Demand for Luxurious and Gated Properties
One key aspect is the high demand for luxury and gated communities, especially among the middle and upper classes and the returning diaspora. Members of the upper class living abroad are increasingly developing an interest in owning real estate back in their homeland, Ghana, for various reasons, like spaces for vacation or retirement homes, among others. And when they do too, they more often go for the luxurious and gated properties. There’s no doubt that these spaces present a sense of peacefulness and solitude after all the stress from work and the fast-paced life in the world. It is indeed a perfect getaway from all the stress and a good choice for some alone time with the family. As it stands, this demographic of the market is the only group that has the capability to purchase high-end, luxurious apartments, which results in their enormous contribution to the progress of the Ghanaian real estate market.
Involvement of Foreign Investors in the Real Estate Market
Another significant trend in Ghana’s real estate industry is the notable involvement of foreign investors, driven by the country’s political stability and growing economy. These investors bring fresh perspectives and innovative aesthetics to property design, introducing advanced technologies and sustainable building practices to the market. Their emphasis on efficiency often means using materials optimally to maximize output while maintaining high quality. This influx of foreign investment not only enhances the architectural landscape of Ghana but also promotes the adoption of global best practices in real estate development, contributing to the overall sophistication and competitiveness of the market.
Digitalization of Land Records
One key development in Ghana’s real estate market is the ongoing digitalization of land records, an effort that aims to reduce fraud activities related to land ownership and streamline the property acquisition process. This initiative is expected to significantly enhance transparency and efficiency in land transactions, addressing long-standing issues of land disputes and ownership verification. By digitizing these records, the government is not only making the process more accessible to everyone but also more secure, fostering greater confidence among investors and property buyers.
Moreover, this digital transformation aligns with broader global trends towards smart technologies in real estate, positioning Ghana as a forward-thinking market.
Growing focus on infrastructure development
In recent times, Ghana has seen a significant focus on infrastructure development, including improved road networks and utilities, which is opening up new areas for real estate development. This growth in infrastructure is paving the way for a breakthrough as it makes previously inaccessible or underdeveloped areas in Ghana now accessible for investment, leading to increased real estate activity. As a result, investors are increasingly looking to capitalize on these emerging opportunities in Ghana’s real estate sector. The combination of modern technology and improved infrastructure is driving the country towards becoming a competitive player in the global real estate market.
Airbnb
Airbnb is a notable trend in Ghana’s real estate industry, presenting significant opportunities. Accra, in particular, stands out as one of the eight fastest-growing Airbnb markets globally. According to AirDNA, there are 8,871 active Airbnb listings in the Accra metropolitan area, with one-bedroom apartments comprising the majority at 53%, followed by two-bedroom flats at 25%. The average daily rate for these listings is $55.5, generating an average monthly revenue of $2,129.
Over the past decade, the Airbnb market in Ghana has grown substantially, offering diverse options ranging from cultural experiences to urban and beachside accommodations. This growth has benefited local hosts and communities by providing new income opportunities. Airbnb has become increasingly popular among both business and leisure travelers, as well as locals seeking unique lodging experiences. Its introduction has significantly impacted the traditional rental market in Ghana, reshaping the landscape of the real estate industry.
Demand for One-Bedroom Apartments and Studios
The housing deficit in Ghana represents both a challenge and a lucrative opportunity for investors who are on the lookout for the next opportunity. This deficit arises from the mismatch between the high demand for housing and the limited supply available. The desire of the average Ghanaian to own a home often clashes with the high prices of real estate, making affordable housing scarce. Consequently, there is a growing demand for smaller, more affordable one-bedroom and two-bedroom apartments as well as studio apartments, which are more attainable for many people.
Ghana’s housing shortage has been a longstanding issue, but notable progress has been made. According to the 2021 Population and Housing Census, the housing deficit has decreased by 33% since 2000, a significant improvement. Currently, the estimated housing shortfall stands at 1.8 million units. This reduction is largely due to the surge in real estate development, the expansion of mortgage financing options, and an increase in the construction of residential buildings during this period. These factors have collectively contributed to addressing the housing needs of the population.
As it stands, Ghana’s real estate is being influenced by factors that are driving the market on an upward trajectory; on the one hand, the market tailors modern and luxurious apartments to suit the upper class and returning diaspora as they have the capability to purchase such homes and are a major contribution to the market’s growth, while on the other hand, there’s demand for a more affordable one-bedroom houses studios by the majority population of the country who may not be able to pay for luxury homes but have are eager to own a property. Additional factors in the nation, like the involvement of foreign investors in the industry and some evident progress, influence how property is constructed and priced today.
A few agencies across the country have dedicated their work to providing affordable housing to suit everyone’s budget. Houses for Sale in Ghana (HFSG) stands out as a leading agency committed to providing affordable housing solutions. By offering properties at 30% less than the usual market price, HFSG ensures that more Ghanaians can achieve their dream of homeownership. Whether you are looking for a modest one-bedroom apartment or a studio apartment, HFSG’s affordable options cater to a wide range of needs, making them an important player in Ghana’s real estate landscape. For those seeking quality homes without the hefty price tag, HFSG is the go-to choice, turning the dream of owning a home into a reality for many.
Check out Houses for Sale in Ghana today and start planning your home ownership dreams!
