Authored by the expert who managed and guided the team behind the Ghana Property Pack
Everything you need to know before buying real estate is included in our Ghana Property Pack
Why is Ghana emerging as a prime destination for property investment in 2025? Is it the impressive rental returns, the vibrant economic growth, or the affordability compared to other African markets? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Ghana's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Ghana’s rapidly growing economy boosts your confidence as an investor
Ghana's economy is one of the fastest-growing in Africa, making it a hotspot for investors.
In 2024, Ghana's economy saw a remarkable boost with a real GDP growth rate of 6.3%, a leap from 2.6% in 2023. This surge was largely due to the booming oil, gas, and mining sectors, with the industry sector alone growing by 8.9% in the first three quarters of 2024. Such growth is a magnet for investors looking for promising opportunities.
Foreign Direct Investment (FDI) is climbing, thanks to Ghana's stable economic environment and strategic location. The government has been working hard to make the business climate more appealing, improving infrastructure and creating a welcoming space for investors. Despite some bumps in the road, credit ratings from agencies like Fitch and S&P Global have stayed steady, signaling a healthy investment landscape.
Ghana's economic reforms, including significant debt restructuring deals, have bolstered its fiscal health. The rise of a middle class and urbanization are also driving growth, as more people flock to cities, increasing the demand for housing and services. This urban shift is a key factor in the country's economic dynamism.
Ghana's strategic position as a gateway to West Africa makes it a crucial hub for trade and investment. The country's location is not just a geographical advantage but a strategic one, opening doors to broader markets and opportunities.
Sources: World Bank, Ministry of Finance, Ghana, World Bank PPP
2) More people from Ghana’s diaspora are investing in local real estate
Ghana's diaspora is increasingly putting their money into local real estate.
In 2023, Ghana received $4.6 billion in remittances, a hefty sum that many are channeling into property investments. This influx of cash is not just a financial boost; it helps stabilize the economy and provides a solid foundation for real estate ventures. With such a significant amount flowing in, the diaspora sees real estate as a smart way to invest back home.
Urban areas like Accra and Kumasi are buzzing with real estate activity. Despite some economic hurdles, the market is growing, especially in the mid to low-end housing sector. There's a high demand but not enough supply, which means property prices are on the rise. For those in the diaspora, this is a golden opportunity to invest in a market that's ripe for growth.
The Ghanaian government is also playing its part with the Diaspora Engagement Policy. This initiative is all about tapping into the skills and financial power of Ghanaians abroad. By creating a welcoming environment for investments, the government is making it easier for the diaspora to put their money into real estate, showing that Ghana is open for business.
For many in the diaspora, investing in Ghanaian real estate is not just about making money; it's about contributing to the country's development. The government's supportive stance and the market's potential make it an attractive option. With the right policies and a growing market, the diaspora is finding real estate to be a promising investment.
As more Ghanaians abroad look to invest back home, the real estate market is set to benefit. The combination of financial inflows, government support, and market demand creates a perfect storm for investment. It's a win-win situation for both the investors and the country's economy.
Sources: GNBCC, Afrika VC, Villa Sharks
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Ghana. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Ghana’s land tenure system offers long-term leases, making it attractive for investors
Ghana's land tenure system is a big draw for investors because it offers long-term leases that provide stability and security.
In Ghana, the legal framework supports these long-term leases, making it easier for investors to plan ahead. The 1992 Constitution limits non-Ghanaian interests to 50 years, but there are exceptions. For example, the Tema Development Corporation has a 125-year interest in Tema lands, showing the flexibility available in lease terms.
Urban areas like Accra and Kumasi are seeing a surge in real estate demand due to urbanization and population growth. This is pushing property prices up, making long-term leases even more appealing. The government's investment in infrastructure projects is also boosting property values, adding to the attractiveness of these leases.
Investors are drawn to Ghana not just for the leases but also for the stable political environment and favorable investment climate. These factors have been attracting more foreign direct investment into the real estate sector, making it a hot spot for those looking to invest.
With the rising demand and government support, property values are on the rise, offering investors a promising return on their investments. The combination of long-term lease options and a growing real estate market makes Ghana an attractive destination for property investment.
Sources: Meqasa Blog, Modern Ghana, PropHunt Ghana
4) Ghana's rapid urbanization means there's a growing demand for properties
Ghana's urbanization rate is among the highest in Africa, fueling a surge in property demand.
In 2023, urban population growth hit 2.9659%, showing more people are flocking to cities. This shift is expected to keep climbing, with predictions that by 2030, 65% of Ghanaians will call urban areas home, growing at an average of 4.2% each year.
Accra and Kumasi, the major cities, are feeling the heat with their booming populations, which means more people are hunting for homes and business spaces. Accra stands out as the priciest spot for real estate in Ghana, with property values on the rise. The Ghana Statistical Service notes that 54.8% of the population is already living in urban zones, underscoring the rapid urbanization and the pressing need for housing.
The real estate scene in Ghana has been on a roll over the last ten years, thanks to urbanization and economic growth. The residential sector is the star player in Ghana's economy, with a housing shortage pushing property prices up. Even with some economic bumps, real estate in Ghana grew by 1.2% in the second quarter of 2023, signaling a bounce back in property value.
Sources: Trading Economics, The Greens Ghana, UN Habitat, PropHunt Ghana
5) With tourism growing in Ghana, you can easily rent out your property short-term
Ghana's tourism sector is booming, creating exciting opportunities for short-term rental properties.
In 2023, the Ghana Tourism Authority noted a remarkable rise in international tourist arrivals, with 500,000 visitors in the first half of the year. This was a 50% increase over the previous quarter, and the momentum carried into 2024, with nearly 600,000 tourists arriving in the first half of the year. This influx of tourists has significantly boosted tourism revenue, generating around $1.8 billion in the first half of 2024.
Tourists are spending more during their stay, which is great news for the local economy and creates a demand for accommodation options like short-term rentals. The government's 'Destination Ghana' initiative is ambitious, aiming to attract two million domestic and international arrivals by 2025, with a revenue target of $5 billion. This plan includes modernizing key tourism facilities and enhancing infrastructure, making Ghana an even more appealing destination for travelers.
Digital platforms like Airbnb are making it easier for property owners to meet this growing demand. Airbnb usage in Ghana surged from 11.5% in 2021 to 27% in 2023, showing how technology is reshaping the rental market. Favorable government policies, such as tax incentives, are also making the real estate market attractive to investors.
Sources: The BFT Online, CEIC Data, Zed Multimedia, African Property Magazine
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6) With the digital economy booming, tech professionals are driving up housing demand
Ghana's digital economy is booming, drawing tech professionals who need housing.
With internet penetration at about 69.8% in early 2024 and mobile phone usage over 135% in 2023, Ghana is incredibly connected. This connectivity makes it a hotspot for tech professionals seeking vibrant digital landscapes.
Foreign investments are pouring into Ghana's tech sector, with multinational companies setting up shop. This influx creates more job opportunities, naturally attracting tech professionals and increasing the demand for housing.
The government is all in on digital growth, hosting events like the Ghana Digital and Innovation Week and backing smart city projects. These efforts showcase Ghana's commitment to digital transformation, making it a magnet for tech talent.
Ghana's startup scene is buzzing, with a surge in tech startups and incubators. This thriving ecosystem, focused on various tech sectors, draws professionals eager to join the action, further boosting housing needs.
Tech hubs are popping up, nurturing talent and innovation. This vibrant environment attracts tech professionals who are relocating to be part of this dynamic industry.
Sources: Ghana UN, Gender and Digital, Startup Universal, Trade.gov, IIPGH
7) You’ll benefit from tax breaks and other incentives for real estate development
The government is offering tax breaks to boost real estate development, especially for affordable housing.
These tax holidays are a big incentive for developers to build low-cost, high-quality homes for families with low to middle incomes. This strategy is crucial in tackling the housing shortage and making homes more accessible to more people.
By reducing import duties on construction materials, the government is lowering building costs, which makes it easier for developers to start new projects. This not only benefits the real estate sector but also boosts the economy by attracting investments from both local and foreign sources.
The business environment is becoming more attractive, leading to increased real estate development over the past few years. Developers are finding it more feasible to undertake projects, thanks to these incentives.
Capital allowances are another perk, allowing developers to write off construction costs over time. This reduces their taxable income and enhances profitability, making it easier for them to deliver projects efficiently.
These financial benefits are crucial for developers, enabling them to improve project quality and capabilities. The incentives are a game-changer in the real estate landscape.
Sources: Oxford Business Group, GhanaWeb, PwC Tax Summaries
8) With infrastructure like roads and utilities improving, property values in Ghana are on the rise
Ghana's infrastructure is on the rise, and it's boosting property values.
With the government pouring GHS5.3 billion into road projects in 2023, up from GHS3.6 billion in 2022, the country is seeing a transformation in connectivity. The Eastern Corridor Road is a prime example, with 74% of its 500-kilometer stretch now in good condition, making it easier for goods and people to move around. This is a game-changer for areas linked by this road, opening up new opportunities for development.
Another significant upgrade is the expansion of the Accra-Tema motorway. This project has enhanced connectivity between major cities, making these areas more appealing for both residential and commercial investments. The improved road network is not just about convenience; it's about making these regions more attractive to potential buyers.
Beyond roads, Ghana's electricity grid is becoming more reliable, with a supply capacity of 4695 MW and 4.74 million connections. This stable power supply is a big draw for property buyers, as it cuts down on operational costs and ensures a steady energy flow. Areas with consistent electricity are seeing a spike in demand, as people prefer locations where they can count on the lights staying on.
Real estate agents are noticing this trend, with many reporting a surge in interest for properties in regions with improved infrastructure. Buyers are increasingly looking for places with better roads and utilities, knowing that these factors can significantly enhance their quality of life and investment potential.
Ghana's infrastructure improvements are not just about roads and electricity; they're about creating a more connected and reliable environment for property buyers. As these developments continue, the country's real estate market is poised for growth, attracting more investors and residents alike.
Sources: Africa Build Show, Oxford Business Group, nLine, Inc., The Africanvestor
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.
9) Ghana’s agricultural potential makes rural real estate ideal for agribusiness investments
Ghana's agricultural potential offers a strong foundation for investing in rural real estate for agribusiness.
With 20.7% of its land being arable, Ghana provides ample space for farming, making it a hotspot for agribusiness ventures. The government is actively supporting these initiatives through programs like Rearing for Food and Jobs and Planting for Food and Jobs, which aim to improve efficiency and boost exports.
In 2023, the agriculture sector grew by 6% year-on-year, contributing a significant 21% to the GDP. This growth is a clear indicator of a thriving sector, making rural real estate investments in Ghana a promising opportunity.
Ghana's climate is ideal for a variety of crops, allowing for diverse agricultural activities. The country is also enhancing its water resources for irrigation, adopting modern systems to boost production. This makes rural areas in Ghana particularly promising for agribusiness investments.
Insider knowledge suggests that the government's focus on agribusiness is not just about boosting exports but also about creating sustainable farming practices. This approach is expected to further enhance the sector's growth, making it an attractive option for investors.
With the right investments, Ghana's rural real estate can become a hub for agribusiness, offering both economic growth and sustainable development. The combination of government support, favorable climate, and modern irrigation systems makes it a compelling choice for those looking to invest in agribusiness.
Sources: Macrotrends, Oxford Business Group
10) In Ghana, you’ll find stable banks offering reliable mortgage options
Ghana's banking sector is remarkably stable, offering reliable mortgage options for buyers.
In 2023, despite challenges from the Domestic Debt Exchange Programme, the sector showed resilience with total industry assets growing by 29.7% and deposits by 34.6%. This growth highlights a strong foundation for financial services, including mortgages, making it a promising time for potential property buyers.
While the Non-Performing Loan (NPL) ratio has increased, it remains manageable. By December 2023, total gross loans and advances reached GH¢77 billion, reflecting a modest annual growth of 13.8%. This suggests the sector can handle loans effectively, which is crucial for mortgage stability and buyer confidence.
The government is actively supporting home ownership through policies that enhance governance and transparency. These efforts create a favorable environment for private sector investment in mortgage financing, making it easier for buyers to access reliable mortgage options.
For those considering buying property, Ghana's banking sector offers a stable and supportive landscape. The combination of asset growth, manageable NPL ratios, and government support makes it an attractive option for potential homeowners.
11) Ghana’s political stability ensures a secure environment for your real estate investments
Ghana offers a stable political environment that makes real estate investments secure.
Since 1992, Ghana has enjoyed a peaceful and predictable democratic governance system, which is a magnet for foreign investors. This stability means that power transitions happen smoothly, without the drama you might see elsewhere.
In 2023, Ghana's Political Stability and Absence of Violence/Terrorism score was -0.02162, suggesting a low risk of political unrest. This creates a safe haven for real estate investors who can plan long-term without fearing sudden upheavals.
Ghana also ranks high in African governance indices, which further boosts investor confidence. These rankings highlight the country's stable political climate, essential for keeping property values steady and attracting foreign direct investment.
The government is actively promoting real estate development through infrastructure projects and new policies. These initiatives are expected to stimulate investment and increase property values, making it an exciting time to consider buying property in Ghana.
With a focus on growth and stability, Ghana's real estate market is poised for a bright future, offering investors a chance to be part of a thriving economy.
Sources: Trading Economics, Trading Economics, Ghana Price Forecasts
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.