How to invest in real estate in Ghana in 2025

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

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THEAFRICANVESTOR

A team specialized in African real estate investment opportunities.

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in Africa, particularly in Ghana. If you'd like to learn more about us, you can check our presentation page.

How easy is it for a foreigner to invest in real estate in Ghana compared to the US or UK?

Ghana's real estate market is significantly more accessible to foreign investors in terms of entry costs and bureaucracy compared to the US or UK markets in 2025.

The Ghanaian property market welcomes foreign investment with relatively straightforward processes and government policies that actively support international buyers. Entry costs in Ghana typically start from $50,000 for apartments in developing areas, while comparable properties in major US or UK cities would cost 5-10 times more.

However, Ghana offers less mature legal protections than Western markets. While the US provides title insurance and highly regulated agent services, Ghana's real estate agent market remains largely unregulated, requiring extra due diligence from buyers. The UK system offers similar robust protections but comes with substantially higher tax obligations for non-resident buyers.

Ghana allows foreigners to own multiple properties without restrictions, unlike some Western markets that impose additional taxes or limitations on foreign buyers. The trade-off is that foreigners can only acquire leasehold rights (maximum 50 years, renewable) rather than freehold ownership available in the US and UK.

Overall, Ghana presents a more affordable entry point with fewer bureaucratic hurdles, making it easier for foreigners to start investing, though buyers must compensate for weaker institutional protections through careful planning and professional assistance.

What are the exact steps to buy property in Ghana as a foreigner?

The property purchase process in Ghana follows eight distinct steps that foreign buyers must complete, typically taking 2-4 months from start to finish.

Each step requires specific documentation and professional oversight to ensure legal compliance and protect your investment.

It's something we develop in our Ghana property pack.

What documents are required at each stage, and which are mandatory versus optional?

Understanding the distinction between mandatory and optional documents is crucial for a smooth property purchase in Ghana.

During the due diligence phase, mandatory documents include the Land Title Certificate, Site Plan, Indenture, and a Lands Commission Search Report. These documents verify ownership and reveal any encumbrances on the property. An optional but recommended document is an independent surveyor's site plan for additional verification.

At the offer and negotiation stage, the Purchase/Sales Agreement is absolutely mandatory as it forms the legal basis of your transaction. If you're buying remotely, a Power of Attorney becomes essential rather than optional, allowing your lawyer to act on your behalf.

For the legal and financial phase, you must obtain a Tax Clearance Certificate and Building Permit (if applicable). Mortgage pre-approval documents are only required if you're financing the purchase, making them optional for cash buyers who represent the majority of foreign investors.

During registration, mandatory documents include the Stamped Indenture, Lease Agreement, and Property Tax Receipt. Optional documents at this stage include utility bills and insurance policies, though these become important for property management.

Can you complete a property purchase remotely or do you need to be physically present?

Foreign buyers can complete the entire property purchase process in Ghana remotely without ever setting foot in the country.

The remote purchase process relies on three key elements: a trusted real estate agent or developer, a qualified property lawyer, and a properly executed Power of Attorney. Your lawyer can handle all documentation, payments, and registration processes on your behalf once granted legal authority through the Power of Attorney.

Virtual property tours have become standard practice in Ghana's real estate market as of June 2025, with reputable agents offering detailed video walkthroughs, drone footage, and live video calls to showcase properties. Many developers now provide 360-degree virtual tours of their projects.

All legal documents can be signed electronically or through your country's Ghanaian embassy/consulate, then sent to Ghana for processing. Payment transfers are handled through international banking channels, and your lawyer can collect all final documentation on your behalf.

While remote purchase is entirely feasible and increasingly common, some buyers choose to visit Ghana at least once during the process for peace of mind, though this remains optional rather than mandatory.

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Are foreigners allowed to buy freehold or only leasehold properties, and what restrictions apply?

Foreigners cannot own freehold land in Ghana - this right is constitutionally reserved for Ghanaian citizens only.

Foreign investors are limited to leasehold arrangements with a maximum term of 50 years, which can be renewed upon expiration. This restriction applies to all land purchases, whether residential, commercial, or agricultural. However, foreigners can own the buildings and structures on leased land outright.

The lease terms are negotiable but cannot exceed the 50-year limit for non-citizens. Renewal is generally straightforward if you've maintained the property and paid all taxes, though terms may be renegotiated. Corporate entities with foreign ownership face the same restrictions as individual foreign buyers.

There are no restrictions on the number of leasehold properties foreigners can acquire, and you can freely buy, sell, or transfer your leasehold interest to other parties. The property can also be inherited by your beneficiaries for the remainder of the lease term.

Despite the leasehold limitation, many foreign investors find Ghana's property market attractive due to strong appreciation potential and the practical security that a 50-year renewable lease provides.

How reliable are real estate agents in Ghana, and how do you find a trustworthy one?

Ghana's real estate agent market remains largely unregulated, making it essential for foreign buyers to conduct thorough vetting before engaging any agent.

Unlike the US or UK where agents must be licensed, many Ghanaian agents operate without formal qualifications or oversight. This creates a mixed market where highly professional agencies operate alongside opportunistic individuals who may lack expertise or ethical standards.

To find a trustworthy agent, start by checking for membership in professional bodies like the Ghana Real Estate Developers Association (GREDA) or the Real Estate Investment Group (REIG). Request client references and actually contact them to verify the agent's track record. Established agencies with physical offices, company registration, and an online presence generally offer more reliability than individual operators.

Interview multiple agents before choosing one, asking specific questions about their experience with foreign buyers, knowledge of legal procedures, and familiarity with your target areas. Professional agents should readily provide documentation of past transactions and have established relationships with reputable lawyers and surveyors.

Red flags include agents who pressure you for quick decisions, request large upfront payments, claim to have exclusive deals unavailable elsewhere, or cannot provide proper documentation for properties they're showing.

What are the most common mistakes foreigners make when investing in Ghanaian property?

The most costly mistake foreign investors make is skipping proper due diligence at the Lands Commission, which can result in buying disputed or improperly titled property.

1. Not conducting title verification: Many foreigners trust sellers or agents without independently verifying ownership at the Lands Commission. This oversight can lead to purchasing property from someone who doesn't legally own it or buying land with existing disputes.
2. Proceeding without a lawyer: Attempting to save on legal fees by handling transactions independently often results in invalid contracts, missed registration deadlines, or vulnerability to fraud. A property lawyer typically costs 1-10% of the purchase price but provides essential protection.
3. Buying property sight unseen through unverified channels: Some investors transfer money based solely on photos or promises, without proper virtual tours or trusted representation. This frequently leads to discovering the property doesn't match descriptions or doesn't exist.
4. Failing to register the property: Some buyers consider registration optional or delay it to save costs. Unregistered property leaves you vulnerable to competing claims and may complicate future sales or inheritance.
5. Underestimating total costs: Foreigners often budget only for the purchase price, not realizing that legal fees, stamp duty, agent commissions, and registration can add 8-23% to the total cost. This leads to stalled transactions or incomplete documentation.

It's something we develop in our Ghana property pack.

Will the Ghanaian legal system protect foreign buyers in case of fraud or disputes?

Ghana's legal system provides mechanisms for dispute resolution, but foreign buyers should not expect the same level of protection as in Western countries.

The Ghanaian courts recognize and enforce property rights for foreign investors, and there are established procedures for handling real estate disputes through both litigation and arbitration. However, the judicial process can be slow, with property cases sometimes taking 2-5 years to resolve, and outcomes may be less predictable than in more developed legal systems.

Land disputes are unfortunately common in Ghana, often arising from multiple sales of the same property, family ownership disagreements, or conflicts between traditional and formal land ownership systems. Foreign buyers are particularly vulnerable as they may not understand local customs or have fewer local connections to help resolve disputes informally.

Having a competent property lawyer is absolutely essential - not optional - for foreign buyers. Your lawyer should include clear dispute resolution clauses in purchase agreements, specifying arbitration procedures and applicable law. Many lawyers recommend arbitration over court litigation as it's typically faster and more predictable.

The best protection remains prevention through thorough due diligence, proper documentation, and working exclusively with verified professionals who have proven track records with foreign clients.

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 taxes, fees, and additional costs should you expect?

Foreign property buyers in Ghana should budget for total additional costs of 8-23% above the purchase price to cover all fees and taxes.

Additional costs may include utility connections, property insurance, and property management fees if you won't be residing in Ghana.

Can you buy property outright in cash or is financing available?

Cash purchases dominate Ghana's foreign buyer market, with approximately 80% of international investors paying outright rather than seeking financing.

Cash transactions are preferred because they're faster (closing in 4-8 weeks versus 3-4 months with financing), simpler (fewer documents required), and avoid the high interest rates charged to foreign borrowers. Cash buyers also have stronger negotiating positions and may secure 5-10% discounts from motivated sellers.

Financing options exist but remain limited for foreign buyers. Some developers offer installment payment plans spreading costs over 12-24 months during construction. These typically require 20-30% down payment with the balance paid in monthly installments, sometimes interest-free.

Bank mortgages for foreigners are available from select Ghanaian banks but come with stringent requirements including proof of income, Ghana-based guarantors, or significant business ties to Ghana. Interest rates for foreign borrowers typically range from 18-30% annually, making cash purchases more economical for most investors.

The prevalence of cash purchases means the market moves quickly, and financing buyers may lose out on competitive properties to cash-ready investors.

Is it possible for foreigners to get a mortgage in Ghana?

Foreigners can obtain mortgages from Ghanaian banks, but the terms are significantly less favorable than those available to citizens or in Western markets.

As of June 2025, mortgage interest rates for foreign borrowers range from 18-30% annually, compared to 3-7% in the US or UK. Banks typically require 20-30% down payment, though some may demand up to 50% for foreign applicants without local income sources. Loan terms are usually shorter, typically 10-15 years maximum versus 25-30 years in Western markets.

Eligibility requirements are strict and include proof of stable income (preferably from Ghanaian sources), a local guarantor with substantial assets, bank statements showing consistent cash flow, and sometimes evidence of business interests in Ghana. Banks are more receptive to foreigners employed by multinational companies operating in Ghana or those with established business relationships in the country.

To improve mortgage approval chances, maintain accounts with Ghanaian banks for at least 6 months before applying, provide comprehensive documentation of all income sources, consider applying through banks where you have existing relationships, and be prepared to accept shorter loan terms or higher down payments. Some buyers form local companies to access better lending terms, though this requires additional legal structuring.

It's something we develop in our Ghana property pack.

Does buying property in Ghana offer any path to residency or citizenship?

Property ownership alone does not provide any pathway to residency or citizenship in Ghana, unlike some countries that offer golden visa programs.

Ghana's immigration laws treat property investment separately from residency applications. Owning property, regardless of value or quantity, doesn't grant any special immigration status or fast-track citizenship applications. Foreign property owners still need to apply for appropriate visas for each visit.

Residency permits in Ghana are granted based on employment, business investment (beyond just property), marriage to a Ghanaian citizen, or retirement (for those over 60 with proven income). The standard path to citizenship requires legal residency for at least 5-7 years, demonstrating contribution to Ghana's development, and meeting other criteria including language proficiency.

Property ownership can indirectly support residency applications by demonstrating ties to Ghana and financial commitment, but it's not a qualifying factor on its own. Investors interested in residency should explore business investment visas or employment-based permits.

For most foreign property investors, the practical approach involves obtaining a multiple-entry visa or business visa that allows extended stays while maintaining primary residency in their home country.

Where do most foreigners tend to buy property in Ghana?

Foreign property buyers concentrate heavily in Accra's upscale neighborhoods, with 70% of international investment flowing to the capital city's premium residential areas.

East Legon leads foreign buyer preferences, offering modern amenities, 24-hour security, and proximity to international schools and shopping centers. Properties here range from $150,000 for apartments to $500,000+ for luxury homes. Airport Residential Area and Cantonments follow closely, attracting diplomats and expatriate executives with their established infrastructure and central location.

Ridge and Roman Ridge appeal to investors seeking colonial-era properties with renovation potential, while Trasacco Valley represents the ultra-luxury segment with gated estate homes starting from $400,000. These established areas show steady appreciation of 8-12% annually as of mid-2025.

Emerging hotspots include Oyarifa and Ayimensah in Greater Accra, where property prices are 30-40% lower than prime areas but showing rapid development. Tema Community 25 attracts investors interested in modern planned communities near the port city.

Outside Accra, Kumasi sees growing foreign investment in residential properties near the university and business districts. Takoradi attracts oil industry professionals, while Tamale remains largely untapped by foreign buyers. Coastal properties in areas like Prampram and Ada are gaining attention for vacation home investments, though infrastructure remains developing.

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.

Sources

1. Landmark Homes Ghana - Investment Opportunities
2. Lakeside Estate - Guidelines for Foreign Buyers
3. Clinton Consultancy - Land Ownership Laws
4. Vaal Real Estate - First Time Buyers Guide
5. Landmark Homes - Property Buying Process
6. Illas Realty - Property Documentation Guide
7. Enmaa Ghana - Avoiding Common Pitfalls
8. Apartments.com.gh - Legal Requirements
9. Chreston - Property Fees and Costs
10. Enmaa - Property Financing Options