. Why Purchase Real Estate Property In Ghana ?

• If you find yourself in the diaspora,or if you are in the foreign land outside, Ghana, and you are considering an investment in a real estate property in Ghana, then you will find this article interesting.


• Africa is the new economic investment destination and Ghana is one of the key major players in this regard as property investors are jostling for space to register their presence in the nation’s real estate sector. The country, Ghana, offers several compelling reasons why any prospective investor would want to purchase a real estate property in Ghana. Today, there are numerous people from all walks of life, including countries such as the United States Of America, United Kingdom, the Middle East, South Africa, and neighboring countries from Nigeria, La Cote Ivoire, Togo, etc looking to purchase properties in Ghana's prime cities - Accra, Tema, Kumasi and Takoradi for residential and commercial purposes. The reason behind such growing interest in the acquisition of landed properties in Ghana is not far fetched.

• Ghana is one of the visibly prominent areas on the African continent. It is usually considered the gateway to the West African Sub region .The city has a rich diverse resource base, with one of the highest Gross Product per capita in Africa. It remains one of the economically sound countries on the African continent, with a lot of attraction for both domestic and international investors.The tourism potential of the country is also enormous, and is one of the largest income earners for the government of the day.


• The financial sector has also witnessed a lot of deep transformation boosted by the government’s policies to partner the private sector through the Public-Private Partnership (PPP) initiative, Ghana’s real estate sector is booming, giving investors value for their money. The metamorphosis in this sector has culminated in the liberalization of the financial sector expanding their portfolio managements. Unlike before, a lot more banking and non banking financial institutions are offering more credit to the private sector. This has contributed to the fast pace in the private sector growth.

• The education sector is also experiencing a jump in its transformation. In Ghana, today, there are more quality schools for people from all walks of life. Universities continue to increase in numbers and more quality junior high and senior high schools continue to emerge. Recently. Ghana has enjoyed the high patronage of their anglophone neighbors into their schools, many thanks to their stable educational system as well as a serene political enviroment.


Many Nigerian investors have relocated to Ghana, no thanks to the unstable power supply in Nigeria over the years, sound and continuity in government policies, adequate security and aggressive development of critical infrastructure by its government.



Most Nigerian industries are operating branches in Ghana, Nigerian banks such as GTB, UBA and ZENITH have already gounded themselves there, and where these institutions and company go, they will definitely require accommodation not only or themslves but for their workers. So this gives opportunity for real estate investors and developers to boost their trade.

The fact that there are currently no restrictions on non-Ghanians to own landed property makes it even more attractive, this is because the government is committed to promoting maximum inward foreign direct investment, and is working with a body called the Ghana Real Estate Developers Association to restructure the entire property sector in the country. Choice areas for real estate investments in Accra include East Legon, North Ridge, Kanda, Airport residential area, Cantonments, West Legons (Westlands), these areas can be safely compared to areas in Lagos like the Ikeja GRA, Anthony Village, choice areas of Surulere, Ikoyi, VI and upper Lekki areas. The return on investment here is very high. Rental income in these areas range from $1,000 to $10,000 per month depending on the type of accomodation. Land values range from $100,000 upwards depending on the areas.
Other areas on the ouskirts include East Legon extension (santoe hills)/ Adjingano, Oyibi, Dodowa, Labone, Medina, Tesano, Dzorwulu etc. Here the land values are much cheaper.

Mzee Pkoli,

Land prices are dynamic and changes fast so the prices you knew a year ago wound have appreciated at least 25%.
The problem in Accra is that in the real sense Ghana is for sale. This is because an average Ghananian cannot afford the "prohibitive" prices while foreigners find it very cheap.

The current plots I have taken positions is in Millenium City Kasoa, an Accra suburb that is 1 hour drive from central Accra. I can compare it with your Kitengela.

The going prices for serviced plots is 6,200 Ghana Cedis (12 months plan) or 5,000 Ghana Cedis outright purchase. It is a dash because it translates to 261,000 ksh (installment) or 210,000
ksh outright for a 80 X 100 feet plot!!!


Check out

www.milleniumcitygh.com


With this agent you are in safe hands as the promoting company 21st Century Contruction limited
is a member of GREDA (Ghana Real Estate Development Association), the ombusman of Ghana estate developers.

The cheapest developed 2 bedroom bungalow is USD 30,000 that is about 2.5 Million Ksh, which is still a dash (very cheap) when compared to Nigeria or Kenya. 2.5 million ksh can only fetch you an eigth quarter plot in a good location in Kitengela !!!

Regards

YOUNG - What rent would it fetch and whats the rental tax there.

(1) To take you home can yoi compsre plots in westlands / upperhill with that of Kitengela or Thika ?

I was referring to emerging safe and promising suburbs often referred to as NEW FRONTIERS not the heart of Accra city.
Read through my submission again,

(2) Your Kenyan friend in Accra is a typical East African, he relied on hearsay while in Accra and he wants to buy from locals who sale principally stool land and take it from you therafter.
Again you did not read through my post well.
You can see I recommended that you should buy into an ORGANISED estate from reputable estate firms who are members of GREDA.

If I am doing real estare biz in Kenya , you should expect me to do transact business with Hassconsult or Villacare not the numerous penny bob companies or individuals. This is a basic safeguard so as not to be penny wise pound foolish. In real estate matters con men around everywhere, so you have to take basic precsution.

Just for your info let me mention just a few reputable GREDA certified real estate developers in Ghana :-

www.redrowghana.com
www.devtraco.com.gh
www.comethomesgh.biz
www.milleniumcitygh.com
www.noblerealtyghana.com

Comet is listed in Ghana stock exchange.


As a non resident foreigner if you you do any real estate transaction with them you can go to sleep I tell you.

Young - The info you have provided is good for us investors who wish to invest wide although i have checked the average rate of return in kenya for rent is between 4% to 7%. The plus for Ghana is the tax thing.

I probably would want to invest there to diversify but not for spectacular income given the above example.

Good post Young/Tokyo. (Medase ...Mzee Young)

I agree, it's hard enough getting rent from Nairobi's low end, let alone in Ghana. You could give it to an agent but then again....

Maybe you could buy to flip as Ghana's economy was up 20% last year.

Or stick closer to home. Good offers in Kenya thanks to high interest rates..

Young have you tried to determine the rate of property of appreciation generally given that their economy is booming. I know Tullow has also discovered loads of oil there.

Secondly, I am told that aluminium window frames are the prefered window frames and that they are even done by Jua kali people there in plenty unlike Kenya where only big companies like Booth manufactures are manufacturing them. Again I am made to understand that this is because of the various metals that are mined there. Prices are comparable to the our steel casement windows. Given there appealing appearance, I can try to market them here.

Just check around when you have time and get me contacts/websites on some of the mid size firms. I wont mind considering this biz just like we now have Decra tiles coming in.

Thanks

I was in Ghana until Thursday and I thought it was a great place to invest. Kenyans of means should try but those of modest means should invest within the country and in the EA region. Happy hunting in the land of Akwaaba.

@Rapudox
I disagree with you regarding the "clean beaches". How can they be clean when Accra empties its sewer into the ocean and along the rest of the long coastline the rural folk relieve themselves on the beach?

Millenium City Kasoa Ghana Latest.

March 2012

Plot 5,200 Ghana Cedis or USD 2,600
2 Bedroom Bungalow USD 29,000


MAY 2012
Plot 6,000 Ghana Cedis or USD 3,000
2 Bedroom Bungalow USD 35,000


OCTOBER 2012
Plot 8,000 Ghana Cedis or 4,000USD
2 Bedroom Bungalow USD 40,000


More Info :-

www.milleniumcitygh.com

NOTE:- This not an invitation to buy but an illustration of typical real estate returns in Ghana