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A Look at the Ghanaian Real Estate Market: What Makes it one of the Best countries to Invest in?


Alongside land, real estate remains one of the most lucrative and profitable asset classes to invest in. In the United States, the real estate market generated about 8.6% return on investment in 2022. Residential real estate generates about 10.5% return; commercial real estate generates about 9.5% and Real Estate Investment Trusts (REITs) generate about 11.8% return. What about the African continent, and especially Ghana? Return on investment in real estate is around the same numbers in Africa. However, in cities like Lagos or Cape Town, rents increased considerably. These strong increases were likely to be curbed as housing demand in many cities is starting to shift away from city centers to the suburbs primarily due to affordability considerations, but also due to the relative gain in indoor and outdoor space.

Why is Ghana such an attractive place to invest in real estate? It is important to understand that real estate in Ghana presents a wide range of possibilities for investors seeking a dynamic and expanding market. More importantly, the Ghanaian real estate market is mainly known for its affordability. The country’s affordable prices, strong rental market, and potential for capital appreciation make it a highly appealing destination for real estate investment. It is worth noting that Accra, the biggest and major city in the country, is booming. Indeed, Accra has been rapidly evolving into a global metropolis, consistently in the ranks of African cities for sustained growth and international connectivity. Investing in Accra offers investors an excellent return on investment, with rental yields in the range of 8%. The demand for rental properties by corporates and diplomatic missions remains steady.

Beyond the fact that Accra is an attractive place for real estate investments and the price affordability, Ghana is among the best places to invest in real estate investment because of its growing tourism industry. Indeed, Ghana’s tourism sector is expanding quickly, with the number of tourists visiting the country rising by 7% annually. In the past 5 years, tourism has seen significant growth, generating over $2 Billion in revenue from tourism in 2019. The majority of tourists that come to Ghana want to enjoy the stunning beaches and have been a leisurely vacation.

Land ownership in Ghana is essentially for the real estate industry. Ghanaian land is mostly on a leased base. This means that one cannot own the land as a company or individual indefinitely. The leases vary from 25 to 150 years and the terms for foreigners are shorter than those for Ghanaians but they are all negotiable. Foreigners are not restricted from buying land or property in Ghana. Ghana has a population of 40,000 expatriates most of whom live in the capital of the country, Accra. They live in detached houses which are large and have gardens and garages just outside the city center. These are usually rented and yield a rate of between 6-8%. Capital gains are usually taxed at 15% and there is none levied on inheritance.

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