WHY THE REAL ESTATE MARKET IS BOOMING IN GHANA
Ghana’s economic growth over the past few years has been tremendous, which even put Ghana amongst the top ten fastest-growing economies globally and number one in Africa, before the COVID 19 pandemic (MOF, 2019). The growth in Ghana’s economy has also accelerated the growth in the middle-class population of Ghana.
Housing has become extremely important that the housing deficit in Ghana keeps growing at a rapid rate. In April 2019, the minister of works and housing for Ghana, Samuel Atta Akyea, stated that the housing deficit of the country had reached a peak of 2 million, growing from 1.5 million in 2015. People are constantly looking for Ghana property for rent as real estate developers in Ghana constantly develop Ghana houses for sale.
The following are some of the reasons why it is always beneficial to invest in real estates in Ghana:
Increased Housing deficit: In discussing the housing deficit in Ghana, it simply refers to the lack of a proportionate number of houses required to accommodate the population of Ghanaians. As the population of Ghana increases, the number of houses needed also increases, and this creates the opportunity for real estate developers to build more houses to satisfy the unbeatable housing needs Ghanaians face. Ghana needs 85,000 housing units every year to satisfy the housing needs of Ghanaians to bridge the housing gap (Ministry of Water Resources, Works, and Housing).
Overcrowding: Overcrowding proves to be a constant situation in Ghana when it comes to housing in Ghana. The situation is that most Ghanaians live in their already existing family houses which were built long ago. Sometimes there could be an average of 4 to 10 rooms in the family house, with about four family members sharing a room, which puts pressure on the buildings, and further destroys them. These family houses mostly lack the renovation and maintenance needed to keep them in good condition.
Demand for Luxury Property: The growing population of the middle-class population, elites, and enlightened professionals in Ghana, has reshaped the real estate industry in Ghana and this could be a result of economic prosperity. These individuals acquire properties that complement their sense of fashion and lifestyle.
The growing number of expatriates in Ghana has also accounted for this factor. One cannot overlook the fact that the year of return 2019 launched by the government of Ghana brought to Ghana a lot of Ghanaians and other black natives living in the diaspora, which a good number of them decided to relocate to Ghana and therefore demanded some luxury Ghana houses to buy, to suit their lifestyle abroad.
It is of no surprise to often see a lot of luxury Ghana houses for sale on various real estate platforms.
Urbanization: The accelerated rate of urbanization in Ghana has seen a large number of Ghanaians moving from their various towns and localities to cities like Accra, Kumasi, and Takoradi. Ghana's residential market has an annual average of 87,000 transactions of sale and lease, where Accra, Kumasi, and Takoradi lead by volume and value of transactions (Northcourt, 2019). The urban population of Ghana in 2019 rose to 56.7 percent of the total population of Ghana, with an annual growth rate of 3.31%, as reported by The World Bank.
The Ghana real estate industry is generally growing as a result of economic stability, the influx of diaspora Ghanaians and foreign homebuyers, and the movement of people to urban areas. It would be right to say that Ghana’s outlook is encouraging, especially when compared with some other West African countries in the subject market.