Buying a property in Accra: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Accra's property market is included in our pack

Thinking of investing in real estate in Accra? You're not alone!

Accra's rich history and coastal charm inspire many to dream of owning a cozy beachfront cottage or a contemporary apartment overlooking the ocean in Ghana's capital.

Does it make sense, though? Are property prices increasing in Accra? Is it expensive? Should I buy property in Osu or East Legon? Are there any secret taxes? Which place will give me the best yields?

We've solved it for you.

At TheAfricanvestor, we know this market inside and out. As a matter of fact, we have condensed all our findings in a pack. Get it now.

In the lines below, we will share some of this knowledge.

How's the real estate market in Accra?

Are property prices rising or falling? Let's consult the most recent data and stats.

Property types

In Accra, you can find a variety of properties for sale.

These include apartments, houses, townhouses, and vacant land.

Apartments are usually in buildings with multiple units and can range from small to spacious. Houses offer more space and privacy, often with multiple bedrooms and a yard. Townhouses are like a middle ground between apartments and houses, sharing walls with neighboring units.

Vacant land provides an opportunity to build a custom property.

Prices and locations vary, so there's a range of options to suit different preferences and budgets.

Buying or renting?

(If you're purchasing for personal use and not for renting)

If Accra is your city of choice, you may be thinking about the advantages of buying versus renting a property in this bustling capital of Ghana.

Without a doubt, it's better to buy if you want to gain long-term financial security and build equity in a property in Accra.

Our advice? Use the property price-to-rent ratio as your decision-making compass. It's like a measure of how much rental income you'll need to afford the property at its current value.

According to Numbeo, the property price-to-rent ratio in Accra is around 5.81, which is one of the lowest in the world.

It means that, on average, you would only need 6 years of rental payments to actually purchase a property. Buying is clearly an attractive option.

Property prices in Accra

On average, according to the last data from Ghana Statistical Service (GSS), purchasing a property in Accra would cost you around $1,520 per square meter.

Obviously, there are significant differences. An apartment in central Accra might have a different price per square meter than a beachfront property in Labadi. We actually give you a more detailed breakdown in our pack for buying property in Accra and in Ghana.

To give you a better idea, it is 13 times less (yes, you read it correctly) than the property prices in the center of New York.

Also, housing prices in Accra are slightly cheaper (-6%) than in Abidjan.

The most expensive neighbourhoods in Accra are probably Cantonments, Airport Residential, Labone and Osu, while the cheapest areas are likely around the outskirts of the city.

Trends

First and foremost, we have to acknowledge that Ghana offers, today, a stable business environment. The last Fragile State Index that has been reported for this place is 63.

Consider this when thinking about the possibility of buying a property in Accra.

It's also worth noting that Ghana's economy is expected to soar by 16.2% in the coming 5 years, resulting in an average GDP growth rate of 3.2% (IMF forecasts).

If you want to invest in real estate in Accra it's a good thing because a growing economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.

Also, in Ghana, the average GDP per capita has changed by 7.4% over the last 5 years. It's a solid number.

This is a strong positive signal: housing prices in Accra might become more expensive in 2024 and later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Ghana right now.

Buying property in Accra

Buying real estate in Accra can be difficult, especially due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Accra and in Ghana.

Buying process

In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.

Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.

This is the step-by-step process to purchase a property in Accra:

1. Determine your budget and property requirements, considering local property tax implications.
2. Engage a reputable real estate agent familiar with Accra's property market.
3. Conduct property viewings and inspections, taking note of any unique features or challenges.
4. Negotiate the price with the seller or their agent, considering Accra's market trends.
5. Hire a lawyer with expertise in Ghanaian property law to review the Land Title Certificate, site plan, and indenture.
6. Obtain a land title search from the Land Registry to verify ownership and any existing encumbrances.
7. Sign a Sales and Purchase Agreement, outlining all terms and conditions, and include contingencies based on due diligence results.
8. Pay a deposit (usually 10% of the property price) to secure the property, through an Escrow service if available.
9. Apply for a land title transfer at the Land Commission and pay the required fees.
10. Arrange for a survey to ensure accurate property boundaries and avoid boundary disputes.
11. Obtain the necessary permits, like the Land Title Certificate and the Land Use and Spatial Planning Authority (LUSPA) permit.
12. Complete all required paperwork, including the Stamp Duty and register the property in your name at the Land Registry.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Ghana.

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Where to find a property

Explore these websites to find properties in Accra:

• ALISA - Alisa Properties offers a diverse range of properties for sale and rent in various locations.
• Prophunt - Prophuntgh.com is a property marketplace in Ghana connecting buyers and tenants directly to sellers and landlords, offering a range of services and resources.
• Ghana Property Finder - Ghana Property Finder is a real estate platform offering properties for rent, sale, and land, with a focus on major cities like Accra, Tema, and Kumasi.
• Renperty - Renperty is a real estate company in Ghana offering properties for rent and sale, including apartments, houses, and hotels.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Ghana.

Which properties for which budget?

As mentioned before, the average price per sqm in Accra is $1,520. To give you an idea of costs, a one-bedroom property spanning 60 square meters would be about $91,000, while a two-bedroom with 85 square meters would be around $129,000.

However, the cost of properties will fluctuate depending on both their characteristics and their location.

Top neighborhoods in Accra typically come with higher price tags. A condo in Airport City might cost around $170,000, and a residence in Cantonments could be about $340,000.

Of course, some regions offer more affordability. You may find a residence in Chorkor for $150,000, or a residence in Nima priced only at $100,000.

Find a more detailed price list in our full pack for buying property in Ghana.

Common mistakes

Here are the main pitfalls when buying a property in Accra, Ghana:

• Land documentation challenges: Obtaining genuine land titles and verifying ownership can be complex due to informal land tenure systems.
• Land litigation: Frequent land disputes may arise, leading to potential legal battles and delays in property acquisition.
• Land size discrepancies: Confirm the actual size of the land, as measurements might differ from what is stated in documents.
• Leasehold vs. freehold: Understand the tenure system, as leasehold properties may have limited rights and expiration periods.
• Dual land ownership: Beware of customary and statutory land ownership conflicts, causing uncertainty in property rights.
• Land use restrictions: Check for any government restrictions or development plans that could impact your intended property use.
• Lack of building permits: Ensure the property has valid building permits to avoid legal repercussions and future demolitions.
• Urban development issues: Keep an eye on the rapid urbanization in Accra, which can affect property value and infrastructure development.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Ghana Property Pack

Living in Accra

Life in Accra is vibrant and exciting, offering a mix of modern amenities and traditional culture, making it an ideal place for anyone looking to buy property.

Cost of living

The cost of living in Accra is generally considered to be quite affordable. Groceries, transportation, and housing costs are all relatively low compared to other cities in the world.

Here are some examples to better understand the cost of living in Accra, Ghana:

• Alvaro (non-alcoholic malt beverage): $1 for a bottle at a local shop.
• Rent for a one-bedroom apartment in East Legon neighborhood: $800/month.
• Banku with tilapia (Ghanaian dish) for two at a local eatery: $25.
• 1.5-liter bottle of Club Beer: $2 at a supermarket.
• Electricity bill for an 85m² apartment using ECG (Electricity Company of Ghana): $120/month.
• Monthly membership at Fit Right Gym in Osu: $60.
• Ticket to a movie at Silverbird Cinemas: $8.
• Cup of fresh coconut water at a street vendor: $1.

Neighbourhoods

We want to show information clearly and in an easy-to-understand way. So, we made a summary table that lists the different areas in Accra. For yields, prices and rents, check our property pack.

Life in Accra

Accra is the economic hub of Ghana and has a diverse economic landscape. It is home to a variety of industries, including finance, manufacturing, and trade, and is a major contributor to the country's GDP.

What expats usually like the most in Accra is the vibrant culture and the friendly people. They also appreciate the tropical climate, the beautiful beaches, and the wide range of food and entertainment options.

Also, you have to know that Accra confronts waste management challenges and occasional flooding due to rapid urban expansion and poor drainage.

A good point for a property investor - Accra has a mass rapid transit system known as the Accra Metro.

Access to healthcare in Accra is generally good, with a variety of public and private options available.

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Renting out in Accra

This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.

Long-term

Tenant Profiles in Accra

If you decide to buy and rent out to long-term tenants, you should target young professionals, expatriates, students, and families. The rental market in Accra is also very popular with short-term tenants such as tourists, business travelers, and those visiting family.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Accra are quite low, below 2% that's for sure. Among other things, this low performance can be explained by high demand for rental properties in Accra, which has driven up prices and lowered yields.

Accra properties located in rapidly developing areas, close to amenities such as shopping, entertainment, and public transportation, tend to provide the best rental yields as they are in high demand from tenants. Additionally, properties located in established neighborhoods with a strong sense of community can also provide good rental yields due to the desirability of the area.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Short-term

You could also decide to rent short-term to business travelers, expats, and students studying abroad in Accra. Tourists and vacationers looking for a unique stay in the city are also potential tenants for short-term rental in Accra.

If you decide to go with that option, look for properties in East Legon, Airport Residential Area, or Labone. These areas are popular for their access to amenities, nightlife, and proximity to the city center.

Currently, there are approximately 4,000 active Airbnb listings in Accra, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $92.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Accra can make around $700 per month. Also, the average occupancy rate is estimated at 37%.

Is it worth buying real estate in Accra then?

Buying a property in Accra can be a smart move if you're in it for the long haul. The low property price-to-rent ratio, at just around 6 years of rental income to purchase, makes it an attractive option for building long-term financial security and equity.

Plus, the promising economic growth in Ghana, with projections of a 16.2% surge in the coming 5 years, suggests potential property price increases. If you're considering rental income, targeting specific tenant profiles like expatriates, young professionals, or students can provide a steady income stream. Short-term rentals in areas like East Legon and Airport Residential Area also offer a chance to earn extra income.

However, buying property in Accra isn't without its challenges. Land documentation can be complex, leading to disputes and costly legal battles if not handled properly. Rental yields are currently relatively low, often below 2%, due to high demand driving up prices.

Maintenance and infrastructure issues can also be a concern, given the rapid urbanization in the city. If you're a foreign investor, you'll need to navigate specific ownership regulations.

In essence, Accra's property market can be a lucrative venture if you're willing to play the long game, but it's essential to tread carefully, especially when dealing with land documentation and legal matters, and be prepared for lower rental yields in the short term.

Make sure you understand the real estate market in Accra

Don't rush into buying the wrong property in Ghana. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.