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The Kumasi property market in 2025 offers exceptional value with steady price increases, strong rental yields, and rapid development, positioning the city as Ghana's top investment destination outside Accra.
Property prices in Kumasi remain 50-70% lower than Accra while delivering superior rental yields of 8-12%, making it an attractive option for both investors and residents seeking affordability without compromising growth potential.
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As of September 2025, three-bedroom houses in Kumasi average GHS 1.2 million (~$80,000), with prime areas ranging $80,000-$100,000, significantly cheaper than Accra's $450,000-$600,000 range.
The Kumasi residential market shows consistent 5-10% annual price appreciation with neighborhoods near the airport experiencing the highest growth rates of 10-15% annually.
| Property Type | Average Price (USD) | Rental Yield |
|---|---|---|
| 3-bedroom house | $80,000 | 8-10% |
| Apartment (85 sqm) | $65,000 | 10-12% |
| Prime area house | $90,000-$100,000 | 8-9% |
| Land (Ridge area) | $765/sqm | N/A |
| Land (Nhyiaeso) | $200/sqm | N/A |
| Student housing | $55,000-$70,000 | 12-15% |
| Commercial property | $120,000-$150,000 | 6-8% |
What are the current average prices for different property types in Kumasi?
Three-bedroom houses in Kumasi average GHS 1.2 million, which equals approximately $80,000 as of September 2025.
The average apartment size in Kumasi measures 85 square meters and typically costs between $65,000 to $75,000 depending on the specific location and amenities. Properties in prime areas like Ridge and Ahodwo command higher prices, ranging from $90,000 to $100,000 for similar three-bedroom houses.
Land prices vary significantly by neighborhood, with Ridge area averaging $765 per square meter while mid-tier areas like Nhyiaeso cost around $200 per square meter. Student housing properties, which are increasingly popular investments, typically range from $55,000 to $70,000 and offer the highest rental yields in the market.
Commercial properties in central locations like Adum cost between $120,000 to $150,000 but offer lower rental yields compared to residential properties. The Kumasi residential property market caters to large families, with the average household size being 5.8 people, which explains the popularity of spacious three and four-bedroom homes.
It's something we develop in our Ghana property pack.
How do property prices in Kumasi compare to those in other major Ghanaian cities like Accra?
Kumasi property prices are 50-70% lower than equivalent properties in Accra, making it significantly more affordable for both investors and homebuyers.
While three-bedroom houses in Kumasi average $80,000, similar properties in Accra cost over $200,000. Prime neighborhoods in Accra range from $450,000 to $600,000, compared to Kumasi's prime areas at $80,000 to $100,000. This substantial price difference creates opportunities for buyers seeking value in Ghana's second-largest city.
The Kumasi rental market also offers superior yields compared to Accra, with rental returns averaging 8-12% versus Accra's 5-7%. This higher yield compensates investors for choosing a secondary market while still providing excellent returns. The lower entry costs in Kumasi allow investors to diversify across multiple properties with the same capital required for a single Accra property.
Despite lower absolute prices, the Kumasi property market shows similar appreciation rates to Accra, with some neighborhoods experiencing even faster growth due to infrastructure development and the new Kumasi International Airport. The affordability gap makes Kumasi particularly attractive for first-time homebuyers and investors seeking higher returns on investment.
Which neighborhoods in Kumasi are experiencing the most significant price appreciation?
Areas near Kumasi International Airport lead price appreciation with 10-15% annual increases since the airport's launch.
Santasi ranks as the top neighborhood for price growth due to its strategic location near major roads and commercial centers. The area attracts both residential buyers and commercial investors, driving consistent demand and price increases. Daban offers excellent growth potential while maintaining relative affordability, making it popular with young families and first-time buyers.
Ahodwo continues to experience rising prices as it establishes itself as the preferred location for business professionals and expatriates. The neighborhood's proximity to business districts and quality amenities supports sustained price growth. Ridge area, historically expensive, maintains steady appreciation as the most prestigious residential location in Kumasi.
Infrastructure development significantly impacts neighborhood appreciation, with areas benefiting from new road construction, utility improvements, and commercial development showing accelerated price growth. Properties within a 10-kilometer radius of the airport have seen the most dramatic increases, with some areas doubling in value since 2020.
What are the typical sizes of properties available in Kumasi?
The average new apartment in Kumasi measures 85 square meters, designed to accommodate Ghana's average household size of 5.8 people.
Three-bedroom houses, the most popular property type, typically range from 120 to 180 square meters of living space on plots averaging 400 to 600 square meters. Four-bedroom houses offer 200 to 250 square meters of interior space, while luxury properties can exceed 300 square meters with correspondingly larger plots.
Two-bedroom apartments generally measure 65 to 80 square meters, making them suitable for small families or couples. One-bedroom units, popular among young professionals and students, typically range from 45 to 60 square meters. Studio apartments are less common but usually measure 35 to 45 square meters in student-focused developments.
Commercial properties vary widely, with small retail spaces starting at 30 square meters while larger commercial buildings can exceed 1,000 square meters. Office spaces typically range from 50 to 200 square meters depending on location and target tenants. The generous sizing reflects Ghana's preference for spacious living and the relatively affordable land costs in Kumasi compared to Accra.
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What are the associated costs when purchasing property in Kumasi?
| Cost Type | Rate/Amount | Responsibility |
|---|---|---|
| Property Tax | 1.5% annually | Owner |
| Stamp Duty | 0.25-1% of property value | Buyer (one-time) |
| VAT (Developer) | 5% + 1% COVID levy | Buyer |
| Capital Gains Tax | 15% of profit | Seller |
| Legal Fees | 1-3% of property value | Buyer/Seller |
| Registration Fees | GHS 50-500 | Buyer |
| Search Fees | GHS 100-300 | Buyer |
What financing options are available for property buyers in Kumasi?
Mortgage financing is available from Ghanaian banks with interest rates of 24% for cedi loans and 10.5% for dollar-denominated loans as of September 2025.
Local banks like Absa Ghana offer home loans with varying terms and down payment requirements typically ranging from 20% to 30% of the property value. International buyers can access dollar-denominated mortgages, which offer significantly lower interest rates but require meeting specific income and documentation requirements.
Construction loans up to GHS 3 million are available for developers through government-managed funds, supporting new residential and commercial developments. These loans typically require detailed project plans, contractor agreements, and phased disbursement schedules tied to construction milestones.
Alternative financing includes seller financing arrangements, particularly common in the secondary market, where property owners accept installment payments directly from buyers. Developer financing is also available for new projects, often with more flexible terms than traditional bank mortgages. Foreign buyers should note that loan approval processes can take 60 to 90 days and require extensive documentation including income verification and credit history.
How have property prices in Kumasi changed over the past five years?
Kumasi property prices increased 15-20% over the past five years, with current prices 20-30% higher than 2020 levels.
The most significant price increases occurred between 2022 and 2025, driven by infrastructure development including the new Kumasi International Airport and improved road networks. Some neighborhoods near infrastructure projects have seen prices double since 2020, particularly areas within the airport corridor and major commercial zones.
The COVID-19 pandemic initially slowed price growth in 2020-2021, but the market recovered strongly from 2022 onwards as domestic demand increased and international interest grew. Economic factors including currency devaluation and inflation contributed to nominal price increases, though real appreciation remained positive throughout the period.
Luxury properties and prime locations experienced the highest appreciation rates, while entry-level properties in peripheral areas showed more modest but steady growth. The introduction of improved utility services and telecommunications infrastructure in previously underserved areas contributed to price appreciation across diverse neighborhoods. Rental prices increased proportionally, maintaining consistent yield ratios for investors throughout the price growth period.
What are the projected property price trends for the next one, five, and ten years?
Property prices in Kumasi are projected to increase 5-10% annually over the next five years, with airport-adjacent areas expected to outpace city averages.
Short-term projections for 2026 indicate continued growth driven by ongoing infrastructure projects and increasing recognition of Kumasi as an investment destination. The completion of additional road improvements and utility expansions should support sustained demand throughout the year.
Five-year forecasts suggest cumulative price appreciation of 25-40%, with prime neighborhoods potentially achieving higher returns. Areas benefiting from the airport development and improved connectivity to Accra are expected to lead appreciation rates. Commercial property values should grow alongside residential markets as business activity increases.
Ten-year projections remain positive, with sustained growth expected for at least the next decade based on Ghana's urbanization trends and Kumasi's strategic position as the country's second city. However, long-term growth rates may moderate to 3-5% annually as the market matures and reaches higher absolute price levels. Infrastructure completion and economic development will be key factors determining actual appreciation rates over the extended period.
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 are the rental yields in Kumasi, and how do they vary by property type and location?
Kumasi rental yields average 8-12% annually, significantly higher than most major African cities and considerably better than Accra's 5-7% yields.
Student housing delivers the highest rental yields at 12-15% annually due to consistent demand from university students and limited supply near educational institutions. These properties require active management but offer superior returns for hands-on investors. Luxury apartments and houses in prime areas like Ahodwo generate 8-9% yields with more stable, long-term tenants.
Mid-range residential properties in growing neighborhoods like Santasi and Daban typically yield 9-11% annually, balancing good returns with appreciation potential. Commercial properties offer lower yields of 6-8% but provide longer lease terms and more predictable income streams.
Short-term rental properties, particularly those suitable for Airbnb, can generate higher effective yields with hosts earning approximately $3,696 annually at 28% occupancy rates and $68 average daily rates. The rental market benefits from Kumasi's growing economy, limited quality housing supply, and increasing numbers of professionals relocating from Accra seeking affordable living costs.
It's something we develop in our Ghana property pack.
What are the best areas in Kumasi for long-term residential living?
Ahodwo stands out as the premier neighborhood for long-term residential living, offering safety, proximity to business districts, and excellent amenities.
Patasi provides an ideal environment for families seeking residential tranquility while maintaining access to essential services and good schools. The neighborhood combines peaceful living with reasonable commuting distances to commercial centers and offers good value for money compared to premium areas.
Santasi attracts residents seeking rapid property appreciation combined with family-friendly amenities and excellent connectivity. The area's commercial appeal doesn't compromise its residential character, making it suitable for families who want convenience and investment potential.
Daban offers excellent value for first-time homebuyers and young families, combining affordability with growth potential and developing infrastructure. These neighborhoods provide the best combination of livability, safety, amenities, and long-term value retention for residents planning to stay in Kumasi for extended periods.
Which neighborhoods are most suitable for short-term rentals or commercial investments?
Adum leads commercial investment opportunities as Kumasi's central business district with high demand for both short-term accommodation and commercial spaces.
Areas near Kumasi International Airport offer exceptional potential for short-term rentals, capturing business travelers and tourists while benefiting from rapid price appreciation. These locations provide dual benefits of rental income and capital growth potential.
Santasi combines commercial appeal with residential demand, making it suitable for mixed-use investments and flexible rental strategies. The neighborhood's strategic location attracts both short-term visitors and long-term tenants, providing investment flexibility.
University areas present specialized opportunities for student housing and short-term academic accommodation, though these require understanding of academic calendars and student housing regulations. Commercial strips along major roads offer retail and office investment opportunities with steady rental demand from growing businesses.
What are the prospects for property resale in Kumasi, and which areas offer the best capital gains potential?
Ridge, Ahodwo, and airport-adjacent areas offer the best capital gains potential with current appreciation rates of 10-15% annually.
The Kumasi property resale market remains dynamic due to population growth, ongoing infrastructure development, and increasing investment interest from both domestic and international buyers. Most properties can be resold within 6-12 months with proper pricing and marketing, though premium properties may require longer marketing periods.
Airport corridor developments show the strongest resale prospects due to infrastructure improvements and commercial development. These areas benefit from improved accessibility and growing business activity, supporting both immediate resale value and long-term appreciation potential.
Prime residential areas like Ahodwo and Ridge maintain strong resale markets due to limited supply and consistent demand from affluent buyers. The resale market benefits from Ghana's growing economy and Kumasi's position as a regional commercial center, ensuring continued buyer interest.
Properties purchased in emerging neighborhoods often provide the best capital gains potential, though they may require longer holding periods to realize maximum returns. The key to successful resale lies in choosing well-located properties in areas benefiting from infrastructure development and economic growth.
It's something we develop in our Ghana property pack.
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.
The Kumasi property market in September 2025 presents compelling opportunities for both investors and residents seeking affordability, growth potential, and superior rental yields compared to Ghana's capital city.
With properties priced 50-70% below Accra levels while delivering 8-12% rental yields and consistent 5-10% annual appreciation, Kumasi offers an attractive combination of value and growth potential for property buyers.
Sources
- The Africanvestor - Kumasi Price Forecasts
- The Africanvestor - Kumasi Property Guide
- VAAL - REITs vs Direct Property Investment
- The Africanvestor - Ghana Price Forecasts
- VAAL - Ghana Property Market Analysis
- The Africanvestor - Best Areas in Kumasi
- The Africanvestor - Kumasi Real Estate Market
- The Africanvestor - Ghana Property Taxes
- Absa Ghana - Home Loans
- VAAL - Mortgage Financing Options