WHY ACCRA IS THE BEST CITY IN GHANA TO INVEST IN REAL ESTATE.
Real estate in Ghana offers all investors the confidence to invest due to the overall economic growth in Ghana. A lot of developers continue to develop properties because they envision the long-term returns on their investments.
A report by Citi NewsRoom on the 27th March 2021, states that Real Estate developers who plan well will prosper and make returns on their investments in the coming years especially because the government of Ghana cannot achieve its annual target of constructing housing units alone.
On. 21st February 2021, Joy Online News reported that according to the Ghana Statistical Service there is a housing deficit of about 1.7 million units and was assumes to hit 2 million units before 2020.
Furthermore, the country’s population will constantly keep growing by 2.2% year by year as asserted by the World Bank in 2019, thus creating more housing deficit in the coming years.
Many times, people purchase real estate based on the present view sentiment that they may have. That’s: is the market up today or is the markets down today? Based on these sentiments, people make their decisions to buy or to wait.
The secret to investing in property in Ghana is to have a longer-term thought, ensuring that the development of your location of purchase will not be compromised over time and this can create a sense of optimism.
This article outlines why Accra remains one of the best cities in Ghana favourable for any real estate investments.
Accra is located in the Greater Accra region and it is the capital town of the region with a current population of over 2.5 million people according to the World Population Review (2021). Accra boasts of being the capital city of the Republic of Ghana, and it is the economic and administrative hub of the country. As the capital city, it is only normal to think that there is a great potential to do business in the city.
According to the World Population Review, the population has annually been growing by 1.71% since 2015 and this eventually increases the housing deficit in the Accra Metropolitan creating the need for real estate developers to close the gap by developing more properties. It could also be agreed that a greater percentage of the population in Accra are immigrants therefore finding to rent or purchase a residential property in the Accra Metropolitan would always be on top of their needs. Developing commercial property in Accra could also yield great returns since the demands for commercial properties for offices and retail stores keep growing.
Furthermore, the Global Property Guide (October 2019) affirms that the prices of residential properties in Accra are 15% higher than in the other parts of Ghana. This allows investors to make a greater profit margin from investing in property in Accra than in other parts of Ghana.
The global Property Guide (October 2019) assesses the rental market in Accra to be relatively large with 37.5% of all families renting (only 22% for Ghana as a whole), and only about 40.4% of households in Accra hold ownership of their houses (57.4% for Ghana), while another 20.5% live rent-free (19.5% for Ghana as a whole). The remaining 1.6% of housing is employer-provided (4.5% for entire Ghana). Given the cost of accommodation in Accra, it would be a moment of happiness for real estate investors to know that there is always a great yield of 8% - 11% on a property, (Ghana Property Guide, October 2019). For instance, an apartment would cost about US$200,000 and would rent for around US$1.750 per month, giving a gross rental yield of around 11%.