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Kumasi offers some of the most attractive rental yields in Ghana, with average returns of 12% across the city as of September 2025.
(Student housing near KNUST and mid-range apartments in established neighborhoods like Santasi and Asokwa consistently deliver the strongest returns, while luxury properties in premium areas like Ahodwo provide steady income with lower yields but stronger capital appreciation potential.)If you want to go deeper, you can check our pack of documents related to the real estate market in Ghana, based on reliable facts and data, not opinions or rumors.
Kumasi's rental market delivers consistent yields between 8-15% depending on property type and location, with student housing near KNUST university offering the highest returns.
Investment costs range from $30,000 for basic apartments to over $400,000 for luxury properties, with additional fees including 5-6% VAT and annual property taxes of 1.5%.
| Property Type | Average Price Range | Rental Yield | Best Areas |
|---|---|---|---|
| 1-2 Bedroom Apartments | $30,000 - $100,000 | 10-14% | Oforikrom, Atonsu, Santasi |
| 3-Bedroom Houses | $100,000 - $200,000 | 10-12% | Santasi, Patasi, Asokwa |
| Student Housing | $50,000 - $150,000 | 12-15% | Near KNUST, Ayeduase |
| Luxury Properties | $200,000 - $400,000+ | 8-10% | Ahodwo, Nhyiaeso |
| Commercial Properties | $80,000 - $300,000 | 8-12% | Suame, CBD |
| Mixed-Use Properties | $120,000 - $250,000 | 9-13% | Asokwa, Bantama |
What are the different neighborhoods in Kumasi and how do their rental yields compare?
Kumasi's rental yields vary significantly across neighborhoods, with student areas and established residential zones offering the strongest returns as of September 2025.
Student housing near KNUST university in Ayeduase delivers the highest yields at 12-15%, driven by consistent demand from university students seeking affordable accommodation. These properties benefit from low vacancy rates and stable rental income throughout the academic year.
Mid-range neighborhoods like Oforikrom, Atonsu, and Santasi provide solid yields of 10-14% for 1-2 bedroom apartments. These areas attract young professionals and small families who value affordability combined with decent infrastructure and transport links to the city center.
Established family neighborhoods including Santasi, Patasi, and Asokwa offer yields of 10-12% for 3-bedroom houses. These areas appeal to middle-income families and provide steady rental income with lower turnover rates compared to student housing.
Premium neighborhoods like Ahodwo and Nhyiaeso yield 8-10% for luxury properties, targeting affluent locals and expatriates who prioritize security, modern amenities, and prestigious locations over rental returns.
What are the main types of properties available in Kumasi and what is their average rental yield?
Kumasi's property market offers six main categories, each delivering different rental yields based on target tenant profiles and location factors.
1-2 bedroom apartments represent the most common investment option, priced between $30,000-$100,000 and delivering yields of 10-14%. These units attract young professionals, students, and small families seeking affordable housing in accessible locations.
3-bedroom houses cost $100,000-$200,000 and generate yields of 10-12%, appealing to established families who value space and privacy. These properties offer longer lease terms and lower maintenance per square foot compared to apartments.
Student housing near educational institutions ranges from $50,000-$150,000 with exceptional yields of 12-15%. These properties benefit from guaranteed demand during academic periods and can command premium rents for furnished units with reliable utilities.
Luxury properties priced from $200,000 to over $400,000 deliver modest yields of 8-10% but offer stronger capital appreciation potential. These target high-income professionals and expatriates who prioritize quality, security, and modern amenities.
Commercial properties and mixed-use developments cost $80,000-$300,000 and provide yields of 8-13%, depending on location and tenant mix. These offer diversification benefits but require more active management than residential properties.
What is the average purchase price including all fees and taxes for each property type?
Property acquisition costs in Kumasi include the purchase price plus various taxes and fees that add approximately 6-8% to the total investment amount as of September 2025.
| Property Type | Base Price Range | VAT (5-6%) | Total Cost Range |
|---|---|---|---|
| 1-2 Bedroom Apartments | $30,000 - $100,000 | $1,800 - $6,000 | $32,800 - $108,000 |
| 3-Bedroom Houses | $100,000 - $200,000 | $6,000 - $12,000 | $108,000 - $216,000 |
| Student Housing | $50,000 - $150,000 | $3,000 - $9,000 | $54,000 - $162,000 |
| Luxury Properties | $200,000 - $400,000+ | $12,000 - $24,000+ | $216,000 - $432,000+ |
| Commercial Properties | $80,000 - $300,000 | $12,000 - $45,000 | $95,000 - $348,000 |
| Mixed-Use Properties | $120,000 - $250,000 | $7,200 - $15,000 | $130,000 - $270,000 |
VAT applies at 5% for residential properties from developers plus a 1% COVID levy, while commercial properties face 15% VAT plus the 1% levy. Stamp duty ranges from 0.25-1% of the purchase price, and registration fees add another $500-$2,000 depending on property value.
Capital gains tax of 15% applies when selling properties, while ongoing property rates average 1.5% of assessed value annually in Kumasi. Foreign buyers should budget an additional 2-3% for legal fees and due diligence when purchasing through international channels.
What are the typical rental prices for different kinds of properties across the city?
Rental prices in Kumasi reflect the city's diverse economic landscape, with significant variations between property types and neighborhoods as of September 2025.
1-bedroom apartments in central areas command $80-$160 monthly, while similar units in suburban locations rent for $60-$120. These properties appeal to young professionals and students seeking affordable accommodation with basic amenities and transport access.
2-bedroom units range from $200-$400 monthly depending on location and condition. Modern apartments with reliable electricity and water in established neighborhoods command premium rents, while older properties in developing areas rent at the lower end of this range.
3-bedroom houses typically rent for $400-$800 monthly in standard residential areas, with family-friendly neighborhoods like Santasi and Asokwa achieving higher rents due to better infrastructure and schools. Houses with compounds and parking attract premium pricing.
Luxury 3-bedroom apartments in prime locations like Ahodwo average $978 monthly, targeting expatriates and affluent locals who prioritize security, modern appliances, and reliable utilities. These properties often include backup power and water systems.
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How do short-term rental yields compare with long-term rental yields?
Short-term rentals in Kumasi generate different return profiles compared to traditional long-term leases, with higher gross yields offset by increased operational complexity and costs.
Airbnb properties in Kumasi average $3,696 annual revenue with 28% occupancy rates and $68 average daily rates as of September 2025. This translates to potential yields of 12-14% for well-managed properties in strategic locations near business districts or tourist attractions.
Long-term rentals typically deliver 10-12% yields through annual lease agreements, providing more predictable income streams with lower management requirements. These properties benefit from stable tenancy and reduced marketing costs compared to short-term alternatives.
Short-term rentals require significant additional investments in furnishing, utilities, cleaning services, and property management platforms. Monthly operational costs can reach 15-25% of gross rental income, compared to 5-10% for long-term rentals.
Student areas near KNUST perform exceptionally well for short-term rentals during academic periods, while business districts like Suame and the CBD attract short-term corporate guests. However, regulatory uncertainty and competition from hotels present ongoing challenges for short-term rental investors.
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What are the ongoing costs to factor in, like maintenance, management fees, property taxes, and mortgage payments?
Property ownership in Kumasi involves several ongoing costs that significantly impact net rental yields, requiring careful budgeting for sustainable investment returns.
Maintenance costs typically consume 1-2% of property value annually, covering repairs, painting, plumbing, and electrical work. Properties in humid climates like Kumasi require frequent attention to prevent deterioration from weather exposure and termite damage.
Professional property management fees range from 8-12% of rental income for full-service management including tenant screening, rent collection, and maintenance coordination. Self-management can reduce these costs but requires local presence and market knowledge.
Property taxes in Kumasi average 1.5% of assessed value annually, while rental income tax applies at 8% quarterly for residents and 15% for non-residents. These taxes are collected by local authorities and must be paid regardless of property occupancy status.
Mortgage payments vary significantly based on loan terms and lender requirements, with local banks offering rates between 15-23% per annum. International financing may provide better rates but involves complex documentation and currency risk considerations.
Additional costs include utilities for vacant periods, insurance premiums, security services, and backup power systems essential for maintaining competitive rental properties in Kumasi's challenging infrastructure environment.
What are the typical vacancy rates for different areas and property types?
Vacancy rates in Kumasi vary significantly by location and property type, with student housing and affordable apartments maintaining the lowest vacancy levels as of September 2025.
Prime neighborhoods and student housing areas experience vacancy rates below 5% due to consistent demand from university students and young professionals. Properties near KNUST university benefit from predictable occupancy cycles aligned with academic calendars.
Affordable 1-2 bedroom apartments in established neighborhoods like Santasi and Asokwa maintain high occupancy rates driven by population growth and limited housing supply. These properties typically experience vacancy periods of 1-2 months between tenants.
Luxury properties and commercial spaces face slightly higher vacancy rates of 5-10%, particularly for premium units requiring specific tenant profiles. High-end apartments in Ahodwo and Nhyiaeso may remain vacant for 2-4 months while seeking qualified tenants who meet income requirements.
Commercial properties in secondary locations experience higher vacancy rates, especially small retail spaces and older office buildings lacking modern amenities. Mixed-use properties with flexible space configurations tend to maintain better occupancy than single-purpose commercial buildings.
Seasonal factors affect vacancy rates, with student housing experiencing higher turnover during academic breaks and commercial properties facing challenges during economic downturns or local business relocations.
Who are the main renter profiles in Kumasi and what types of properties do they prefer?
Kumasi's rental market serves diverse tenant segments, each with distinct preferences and budget constraints that drive demand for specific property types.
University students represent the largest tenant segment, primarily seeking shared accommodations near KNUST campus in Ayeduase. These tenants prioritize affordability, proximity to campus, and basic amenities like reliable electricity and water supply for their studies.
Young professionals and small families typically rent 1-2 bedroom apartments in mid-range neighborhoods like Santasi, Asokwa, and Patasi. These tenants value transport links to employment centers, reasonable rent levels, and access to markets and schools.
Industrial workers employed in Kumasi's manufacturing sector, particularly around Suame, seek basic housing units close to their workplaces. These tenants prioritize affordability and proximity to industrial zones over luxury amenities or modern finishes.
Expatriates and affluent local professionals rent luxury homes and apartments in premium areas like Ahodwo and Nhyiaeso. These tenants demand high-quality finishes, reliable utilities, security features, and modern amenities including air conditioning and backup power.
Business owners and companies lease commercial spaces in the central business district and Suame industrial zone, preferring locations with good access to transportation networks and customer bases.
How have rental yields and prices changed compared with five years ago and compared with one year ago?
Kumasi's rental market has experienced steady growth over the past five years, with yields improving and property values appreciating consistently through 2025.
Rental yields have increased from an average of 10-11% in 2020 to 12% in September 2025, driven by rising rents and relatively stable property acquisition costs. Student housing and mid-range apartments have led this yield improvement with strong demand growth.
Property prices have risen 15-20% since 2020, representing approximately 3-4% annual appreciation. This growth reflects increased demand from both local buyers and diaspora investment, combined with limited supply of quality housing stock in established neighborhoods.
Comparing to 2024, property prices have increased approximately 5% year-over-year, with luxury properties and student housing experiencing the strongest price growth. Premium areas like Ahodwo have seen prices rise 6-8% annually due to limited land availability and increasing expatriate demand.
Rental rates have grown 4-6% annually over the past five years, with student housing commanding the highest rent increases due to university enrollment growth and improved student financial capacity. Commercial rents have remained relatively stable due to economic pressures on local businesses.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in Ghana versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What is the current breakdown of yields across property types, areas, and sizes?
Kumasi's rental yield landscape in September 2025 shows clear patterns based on property characteristics, with student housing and affordable apartments delivering the strongest returns.
Student areas near KNUST and industrial zones around Suame generate the highest yields at 12-15%, benefiting from consistent demand and limited supply of quality housing. These areas maintain low vacancy rates throughout academic and business cycles.
Mid-range neighborhoods including Santasi, Patasi, and Asokwa deliver solid yields of 10-12% for 1-3 bedroom properties. These areas attract stable tenant bases of young professionals and families seeking affordable housing with decent infrastructure.
Luxury properties in Ahodwo and Nhyiaeso yield 8-10% but compensate with stronger capital appreciation potential. These properties target high-income tenants who prioritize quality, security, and modern amenities over rental cost considerations.
Commercial and mixed-use properties generate yields ranging from 8-12%, with some exceptional locations in Suame and the central business district achieving 13% returns. These properties benefit from business growth and urban development trends.
Property size significantly impacts yields, with smaller 1-2 bedroom units typically outperforming larger properties due to higher demand and more efficient space utilization in Kumasi's compact urban environment.
What are the smartest investment choices today if you want to maximize rental income?
The most profitable rental investment opportunities in Kumasi as of September 2025 focus on high-demand segments with sustainable tenant bases and manageable operational requirements.
- Student housing near KNUST university offers the highest yields at 12-15% with predictable demand cycles and limited competition from quality alternatives. Properties within walking distance of campus command premium rents and maintain low vacancy rates.
- Mid-range 2-3 bedroom apartments in Santasi and Asokwa provide yields of 10-12% with stable tenant profiles and moderate management requirements. These properties appeal to young professionals and small families seeking affordable quality housing.
- Mixed-use properties in Suame industrial zone and central business district deliver yields of 9-13% with diversification benefits. Ground floor commercial spaces with residential units above maximize land utilization and rental income potential.
- Affordable 1-bedroom apartments in established neighborhoods offer yields of 10-14% with high occupancy rates driven by population growth and urbanization trends. These properties require minimal ongoing investment while generating consistent returns.
- Small commercial properties in growing business districts provide yields of 8-12% with potential for significant rent increases as areas develop. Early investment in emerging commercial zones can capture both rental income and capital appreciation.
It's something we develop in our Ghana property pack.
How does Kumasi compare with other similar large cities in terms of rental yield, costs, and market trends?
Kumasi offers superior rental yields and lower entry costs compared to other major Ghanaian cities, making it an attractive destination for income-focused property investors in 2025.
| City | Average 3BR House Price | Average Rental Yield | Market Characteristics |
|---|---|---|---|
| Kumasi | $80,000 - $100,000 | 10-14% | Lower prices, higher yields, growing demand |
| Accra | $200,000+ | 7-10% | Market saturation, higher costs, premium location |
| Takoradi | $60,000 - $80,000 | 8-12% | Smaller market, oil industry dependent |
| Tamale | $40,000 - $70,000 | 9-13% | Emerging market, limited infrastructure |
| Cape Coast | $50,000 - $80,000 | 8-11% | Tourism dependent, seasonal fluctuations |
Kumasi provides better rental yields than Accra while maintaining lower entry costs, with strong fundamentals including university presence, industrial growth, and cultural significance. The city benefits from diverse economic drivers reducing dependence on single industries.
Unlike oil-dependent Takoradi or tourism-reliant Cape Coast, Kumasi's economy combines education, manufacturing, agriculture, and commerce, providing stability for long-term property investment. The city's central location and transport links support continued growth and rental demand.
Infrastructure development in Kumasi lags behind Accra but exceeds smaller cities, offering a balanced investment environment with growth potential and manageable risks for both local and international property investors.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Kumasi's rental market offers compelling opportunities for investors seeking strong yields and steady growth potential in Ghana's second-largest city.
With average yields of 12% and diverse property options from student housing to luxury apartments, the city provides multiple pathways to rental income success with careful market analysis and property selection.
Sources
- TheAfricanvestor - Kumasi Property Market Analysis
- TheAfricanvestor - Kumasi Price Forecasts
- Vaal Properties - Ghana Property Market Deep Dive Q1 2025
- Vaal Properties - Ghana Property Market Price Analysis
- Vaal Properties - Ghana House Prices 2025
- TheAfricanvestor - Ghana Property Taxes
- AirROI - Kumasi Short-term Rental Report
- Vaal Properties - Affordable vs Luxury Real Estate in Ghana