5 Reasons to Invest in Real Estate in Ghana
African Real estate economies have expanded over the past two decades, drawing the attention of investors from around the globe. Ghana in particular has become one of the most sought-after destinations on the continent for tourism, commerce, and real estate.
The country has a strong track record of socio-economic stability and is increasingly cosmopolitan. Perhaps more importantly, relevant stakeholders and systems are working to create a conducive and profitable environment for real estate investment. Whether your interests are in residential or commercial properties here are some key reasons to consider investing in real estate in Ghana.
High Return on Investment
Real estate in Accra, Ghana’s capital city attracts high demand from foreign business and tourism travellers as well as local buyers. The market needs of these individuals also range from long-term leases to short-term stays and purchases. Consequently, owners of real estate are able to generate good returns on their investment from this demand. For instance, reports show that rental yields in Accra range between 8-12%. Indeed, this stands as one of the highest yields in Africa.
Financing and Costing
While properties in Accra are increasing in value and price, investing in real estate in Ghana is relatively more affordable than in more developed countries around the globe. Furthermore, the financing ecosystem in Ghana has continued to develop over the past ten years making it much more feasible for people to buy and access property. This also allows developers to expand their customer base. There are also flexible mortgage options available to anyone who wants to purchase property in Ghana. Some of the major mortgage providers include First National Bank, Republic Bank, Fidelity Bank, and Omni Bank. Taking advantage of the types of mortgage available in Ghana will help you make a good decision when it comes to financing a property.
Ghana has a large deficit in the housing industry and, consequently, a high demand for housing. Experts suggest that Ghana’s housing deficit stands at around 2 million. From an investor’s point of view, this deficit creates opportunities to invest in housing in Ghana. The rental market in Accra is vast. Statistics show that 37.5% of all households in Accra are renting. That is roughly 22% of the population of Ghana. Buying a house in Ghana, as an investor, could open up a new revenue stream for you from renting it out in the low, mid, or high-end market.
Incentives and Infrastructure
The government of Ghana offers a number of attractive initiatives to encourage private sector investment in the real estate market. For instance, the government has established ‘free zones’, areas that are selected as a priority for future development. Additionally, the government offers substantial tax savings to eligible corporate buyers or investors interested in developing commercial real estate for their business. Furthermore, as part of a concerted national digitization effort, the Government is spearheading the digitization of the National Land Registry of Ghana. This will help make the land and real estate value chain more transparent and efficient. Ultimately, these measures make the Ghanaian real estate industry more accessible and profitable for investors.
It is important to use the services of experienced real estate professionals and lawyers during any real estate transaction to ensure success. Thankfully a number of credible real estate companies and technologies have been recently established that provide a more robust framework for investing in property in Ghana. For instance, Seso Global has built Africa’s most trusted property marketplace, which is a unique one-stop shop for digital real estate transactions. Through a unique ecosystem of services, they offer buyers access to trusted properties and professional service providers. This allows for a secured, efficient end-to-end property purchasing experience along the real estate value chain.