Economic Factors Driving Real Estate Growth in Ghana

Ghana has experienced amazing real estate growth in recent years. It has become a hot new destination for investors.

As a hub of economic activity in West Africa, Ghana has really established itself as a stable place to do business on the continent. With a growing middle class and vibrant economy focused on industries like tourism, agriculture and technology, it's attracting locals and foreigners who want a piece of the action.

In fact, property values have been skyrocketing as demand increases. New luxury developments, malls and business parks are popping up in major cities like Accra to meet the need. The government, which has been a supportive instrument has also made it easier to obtain loans and permits which has fueled even more construction.

It's pretty amazing to see a market transform so quickly within just a few years. The economy remains resilient despite external factors like rising inflation and global supply chain issues impacting other markets.

In this article, we will dive into the economic drivers and policies behind Ghana's real estate boom and why the sector is anticipated to thrive in the coming years.

Economic Factors Driving Real Estate Growth in Ghana

Increasing Population

The population of Ghana is expanding rapidly. The need for housing has grown as a result of this expansion, particularly in urban areas. The country's urban population is predicted to increase from 24.7% in the 2010–2021 population census to 60% by 2030, according to the Ghana Statistical Service. This trend is expected to lead to new residential development and the encouragement of the expansion of existing residential areas, which will present opportunities for real estate developers and investors.

Growing Economy

Ghana's economy has grown gradually over the last decade, owing to a combination of factors such as oil and gas extraction, mining, agriculture, and manufacturing.

This expansion has increased demand for residential, commercial, and industrial real estate, consequently propelling the real estate sector forward.

Improving Infrastructure
With investments made in roads, highways, airports, and seaports, Ghana's infrastructure has significantly improved in recent years.

As a result, travel and business are now easier and the nation is now more connected and accessible. Businesses are looking to establish strategic locations, which has increased demand for commercial and industrial real estate as a result of improved infrastructure.

Foreign Investment

The Ghanaian government has also been working to attract foreign investment into the real estate sector. The country has signed a number of bilateral agreements with countries such as China, the United Arab Emirates, and the United States, aimed at promoting investment in various sectors, including real estate. This has opened up opportunities for international investors to participate in Ghana's real estate market, further driving growth in the sector.

Real Estate Investment Opportunities

Ghana's real estate sector offers a range of investment opportunities, from residential to commercial and industrial properties. The country's capital, Accra, is a popular destination for real estate investors, with its prime locations such as the Lakeside Estate, Airport Residential Area, the Cantonments, and the Ridge. Other cities such as Kumasi, Tamale, and Sekondi-Takoradi are also seeing significant growth in their real estate markets.

Policies Supporting Ghana's Real Estate Growth

The Ghanaian government has been instrumental in fostering the growth of the real estate sector, implementing policies that have created a conducive environment for investment:

Streamlining property registration: The government has taken the hassle out of property registration, digitizing the process to make it quicker and more efficient. This has significantly reduced transaction costs, making it easier for investors to dip their toes into the market.

Establishing land banks: The government has also established land banks, providing developers with a ready supply of land to build their dreams. This has streamlined the construction process, allowing developers to hit the ground running.

Encouraging affordable housing: To combat the housing deficit and unemployment in the country,  the government has introduced initiatives to promote affordable housing, offering subsidies to developers and tax breaks for low-income housing projects. This has opened up the market to a wider range of investors, making it easier for people to find their dream home.

Partnering with private developers: The government has also partnered with private developers to undertake infrastructure projects such as roads and utilities. This has enhanced the attractiveness of real estate investments, making Ghana an even more desirable destination for investors.

With these policies in place, it's no wonder that Ghana's real estate sector is booming. The government's supportive stance has created a hotbed of opportunity for investors, making it an exciting time to be a part of this thriving market.