How to invest in property in Kumasi?

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

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

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 a foreign place, particularly in Kumasi. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanvestor, we explore the Ghanaian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kumasi, Accra, and Takoradi. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How easy is it compared to buying property in Western countries?

Buying property in Kumasi is significantly more complex than purchasing real estate in Western countries due to Ghana's restrictive ownership laws and less streamlined systems.

Foreigners can only acquire leasehold interests rather than freehold ownership, with leases typically lasting up to 50 years (renewable). Ghana enforces a minimum investment threshold of $50,000 for foreign property buyers, which doesn't exist in most Western markets.

The due diligence process requires more extensive verification than Western countries, as clear title confirmation is crucial to avoid fraud or ownership disputes. Ghana's financing systems are less developed, with limited mortgage options for foreigners and higher interest rates averaging 24% in local currency compared to 3-7% typical rates in Western countries.

Legal and administrative systems operate more slowly than Western jurisdictions, though they provide adequate protection when proper procedures are followed. Transaction costs are comparable to Western countries at 5-10% of property value, but the process requires more hands-on management and local expertise.

As of September 2025, these structural differences make Kumasi property investment more challenging but still achievable with proper professional guidance.

What are the exact steps in the process from start to finish?

The Kumasi property buying process follows a structured 11-step sequence that typically takes 4-10 weeks to complete.

First, engage a reputable real estate agent or developer (recommended but optional), then identify and inspect properties either in person or through virtual tours. Next, negotiate the purchase price and contract terms with the seller.

The mandatory due diligence phase involves hiring a qualified lawyer to verify the property title, conduct surveys, and check for any existing disputes or liens. After due diligence clearance, draft and sign a formal purchase agreement, followed by paying the deposit (usually 10% of purchase price).

Arrange your financing method, whether through cash payment, local bank mortgage, or developer installment plan. Complete the final payment and participate in the title deed signing ceremony with all parties present.

Register the property with Ghana's Lands Commission (mandatory step), pay the required stamp duty (0.25-1% of property value), and complete the legal transfer process. Finally, transfer utilities to your name, obtain property insurance if desired, and update all tax records with local authorities.

Which parts of the process are mandatory and which ones are optional?

Several components of the Kumasi property buying process are legally mandatory while others remain at the buyer's discretion.

**Mandatory Requirements:**1. Due diligence and title verification through qualified legal counsel2. Formal purchase agreement signed by all parties3. Property registration with Ghana's Lands Commission4. Payment of stamp duty and registration fees5. Meeting the $50,000 minimum investment threshold6. Obtaining proper leasehold documentation (indenture and deed of assignment)7. Legal fee payments and tax record updates**Optional Components:**1. Using real estate agents or property developers as intermediaries2. Property insurance coverage (though highly recommended)3. Mortgage financing (cash payment is acceptable alternative)4. Additional legal protections beyond basic requirements5. Property management services for rental properties

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

What documents do you need to have ready?

Foreign buyers must prepare comprehensive documentation covering personal identification, property verification, and legal authorization.

Document Category	Specific Documents Required	Purpose
Personal Identification	Passport or national ID	Identity verification and legal standing
Property Documentation	Land title certificate, site plan, building permit	Property verification and legal ownership proof
Legal Agreements	Indenture, deed of assignment, sale & purchase agreement	Formal transfer and ownership documentation
Vendor Information	Offer of sale from vendor, ground rent receipt	Seller authorization and fee payment proof
Financial Documentation	Consent to mortgage (if financing), payment receipts	Financing approval and transaction records

Can you go through the process without physically being in the country?

Yes, the majority of the Kumasi property buying process can be completed remotely without physically traveling to Ghana.

Virtual property viewings through video calls and detailed photo documentation allow for remote property inspection and selection. Legal documents can be signed remotely through power of attorney arrangements, provided you work with a trusted, licensed lawyer in Ghana.

Due diligence, title searches, and property registration can all be handled by your legal representative on your behalf. Financial transactions, including deposit payments and final purchase amounts, can be transferred through international banking systems and escrow arrangements.

However, your legal representative must physically handle certain steps including document submission to the Lands Commission, title deed signing ceremonies, and property handover procedures. Remote buying requires establishing a strong relationship with qualified local professionals who can manage the process integrity.

As of September 2025, many foreign buyers successfully complete purchases entirely remotely, though some prefer to visit for final inspections and closing procedures.

What mistakes or pitfalls do foreigners usually make when buying in Kumasi?

Foreign buyers commonly make six critical errors that can result in significant financial losses or legal complications.

1. **Skipping proper title verification** - Many buyers fail to conduct thorough due diligence, leading to ownership disputes or fraudulent transactions2. **Working with unlicensed agents** - Using unqualified or unscrupulous real estate agents who lack proper credentials or local authority recognition3. **Believing freehold ownership promises** - Falling for misleading claims about freehold land ownership, which is legally impossible for foreigners in Ghana4. **Making payments before documentation** - Paying deposits or full amounts before completing proper registration and title transfer procedures5. **Avoiding legal representation** - Attempting to navigate the complex legal system without qualified local lawyers familiar with Ghana's property laws6. **Ignoring minimum investment requirements** - Purchasing properties below the $50,000 threshold, which violates foreign investment regulations

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

Can you actually trust real estate agents there?

Trustworthy real estate agents exist in Kumasi, but agent quality varies significantly across the market, requiring careful vetting and verification.

Licensed, reputable firms with established track records provide reliable services and proper legal compliance. However, the market also contains unlicensed operators and unscrupulous individuals who may engage in fraudulent practices or misrepresentation.

Always verify agent credentials with local authorities and real estate regulatory bodies before engaging their services. Legitimate agents will readily provide licensing information, client references, and detailed property documentation without pressure tactics.

Avoid agents who demand cash-only transactions, refuse to provide proper documentation, or pressure for immediate decisions without allowing adequate due diligence time. Cross-reference agent recommendations with multiple sources and never work with agents who promise freehold land ownership to foreigners.

As of September 2025, working with established real estate firms with strong local reputations remains the safest approach for foreign buyers.

Does the legal system really protect buyers if something goes wrong?

Ghana's legal system provides adequate buyer protection when proper procedures are followed and transactions are completed through official channels.

The court system supports dispute resolution and contract enforcement, though proceedings typically move slower than Western jurisdictions. Property registration with the Lands Commission creates official ownership records that are legally recognized and protected.

Arbitration clauses in purchase agreements offer alternative dispute resolution mechanisms that can be faster than court proceedings. Clear title documentation and proper registration provide strong legal standing for ownership disputes or fraudulent claims.

However, legal protection depends entirely on following proper procedures - unregistered transactions, informal agreements, or cash deals without documentation receive limited legal support. Buyers who complete due diligence, use qualified lawyers, and register properties properly generally receive effective legal protection.

The key limitation is enforcement speed rather than legal rights, as court cases can take months or years to resolve completely.

What precautions should you take before putting money down?

Critical precautions must be taken before making any financial commitments to protect against fraud and ensure legal ownership transfer.

1. **Complete comprehensive title search and verification** through qualified legal counsel to confirm clear ownership and identify any liens or disputes2. **Verify seller's legal authority** by confirming their right to sell the property and reviewing all ownership documentation3. **Use escrow or lawyer-managed payment systems** rather than direct payments to sellers or agents to ensure funds security4. **Insist on registered sale agreements** with all terms clearly documented and legally binding on all parties5. **Never pay full purchase price before registration** - limit payments to small deposits until title transfer is complete6. **Conduct physical property inspections** or detailed virtual tours to verify property condition and specifications match agreements

These precautions significantly reduce the risk of financial loss and ensure legal compliance throughout the purchase process.

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.

How long does the whole process usually take?

The complete Kumasi property purchase process typically requires 4-10 weeks from initial property identification to final registration completion.

Due diligence and title verification usually take 2-3 weeks, depending on the complexity of ownership history and any discovered issues. Property registration with the Lands Commission adds another 1-2 weeks to the timeline.

Cash purchases generally complete faster than mortgage-financed transactions, as loan approval and processing can add 2-4 weeks to the overall timeline. Government office processing speeds, document availability, and any discovered disputes can cause additional delays.

Seasonal factors may affect timing, as government offices and legal systems may operate slower during holiday periods or high-demand seasons. Remote purchases may take slightly longer due to coordination requirements with local representatives.

As of September 2025, most straightforward transactions with clear titles and cash payments complete within 6-8 weeks, while complex cases with title issues or financing complications may extend to 10-12 weeks.

What are all the taxes, fees, and costs involved, with a full breakdown?

Total transaction costs for Kumasi property purchases typically range from 5-10% of the property value, including various taxes, fees, and professional services.

Fee/Tax Type	Rate/Amount	Payment Timing
Property Rate (annual tax)	1.5-2% residential, up to 2.5% commercial	Paid yearly to local assembly
Stamp Duty	0.25-1% of purchase price	Paid during registration
VAT (new developments)	5% + 1% COVID levy	Only on new builds from developers
Legal Fees	1-3% of property value	Paid during transaction process
Agent Commission	3-5% typically	Paid at closing (if agent used)
Registration Fees	GHS 50-500	Paid to Lands Commission
Title Search Fees	GHS 100-300	Paid during due diligence

Can you pay cash, and if yes, is it better than using a mortgage?

Cash payment is not only allowed but often preferred in Kumasi property transactions due to limited mortgage options and high local interest rates.

Cash purchases eliminate financing delays, avoid high interest costs (local rates average 24% annually), and provide stronger negotiating positions with sellers. The process completes faster without loan approval requirements and removes the risk of financing falling through.

However, cash purchases require significant liquid capital and may not provide the leverage benefits that mortgages offer in other markets. Some buyers prefer cash to avoid the complex mortgage application process and documentation requirements for foreign buyers.

Developer installment plans may offer middle-ground options, allowing staged payments without traditional mortgage complications. These arrangements typically don't charge interest but require careful contract review to ensure buyer protection.

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

Do banks even give mortgages to foreigners, and if so, at what rates and under what conditions?

Several major Ghanaian banks offer mortgages to foreign buyers, though with more restrictive terms than local borrowers receive.

Banks such as Absa, Stanbic, and Ecobank provide foreign buyer mortgages with loan-to-value ratios up to 80% and maximum repayment periods of 15 years. Interest rates vary by currency: approximately 24% annually for cedi-denominated loans and 10.5% for USD-denominated mortgages.

Age restrictions typically limit borrowers to those who will be under 60-65 years old at loan maturity. Banks require proof of stable income, often preferring borrowers with local employment or established business operations in Ghana.

Most lenders require borrowers to maintain local bank accounts and may mandate property insurance throughout the loan period. Documentation requirements include income verification, property due diligence reports, and clear title certificates.

As of September 2025, foreign mortgage availability remains limited compared to Western countries, with higher rates and shorter terms reflecting local market conditions and perceived risk factors.

What tips help a foreigner actually get a mortgage in Ghana?

Successfully obtaining a mortgage as a foreigner in Ghana requires strategic preparation and relationship building with local financial institutions.

1. **Establish banking relationships early** - Open accounts with reputable local banks and maintain regular deposits to demonstrate financial stability2. **Document income thoroughly** - Provide comprehensive income verification including tax returns, employment letters, and asset statements3. **Present complete property documentation** - Ensure all title certificates, building permits, and legal due diligence are properly completed4. **Consider specialized mortgage brokers** - Work with professionals who understand foreign buyer requirements and bank preferences5. **Maintain local presence or employment** - Banks prefer borrowers with Ghana-based income sources or business operations6. **Prepare for higher down payments** - Be ready to provide 20-30% down payment to strengthen your application7. **Choose USD-denominated loans when possible** - Lower interest rates (10.5% vs 24%) make these more attractive despite currency considerations

Building relationships with bank managers and maintaining consistent communication throughout the application process significantly improves approval chances.

What types of property can foreigners buy, and what is restricted?

Foreigners can purchase leasehold interests in residential, commercial, and industrial properties, but face significant restrictions on land ownership types.

Permitted property types include apartments, houses, commercial buildings, and industrial facilities under leasehold arrangements typically lasting up to 50 years (renewable). Mixed-use developments and new construction projects are also available to foreign buyers.

However, foreigners cannot acquire freehold land ownership under any circumstances, as Ghana reserves freehold rights for citizens only. Stool lands and skin lands (traditional/customary land holdings) are strictly prohibited for foreign ownership.

Agricultural land purchases face additional restrictions and may require special permissions from government authorities. Raw land purchases are possible under leasehold arrangements but require careful verification of intended use permissions.

As of September 2025, these ownership restrictions remain firmly in place, making leasehold arrangements the only viable option for foreign property investment in Kumasi.

Is there any path to residency or citizenship through property ownership?

Ghana does not offer direct residency or citizenship pathways through property ownership alone, unlike some countries with golden visa programs.

Property investment may support business visa or investor visa applications when combined with active business operations, but real estate ownership itself doesn't qualify for residency status. Some investors use property ownership as supporting evidence for residence permit applications, particularly when establishing local business operations.

Citizenship requirements in Ghana focus on ancestry, marriage, or long-term residency (typically 5+ years) rather than investment thresholds. Property ownership may demonstrate financial stability and local commitment during residency or citizenship applications, but doesn't provide direct qualification.

Investors seeking residency should explore Ghana's investment promotion programs or business registration options alongside property ownership rather than relying solely on real estate investment.

As of September 2025, Ghana has not announced plans for investment-based residency programs that would change this structure.

Where do foreigners usually buy property in Kumasi?

Foreign property buyers in Kumasi concentrate their investments in established neighborhoods that offer superior infrastructure, security, and amenities.

Airport Roundabout area attracts many foreign buyers due to excellent connectivity, modern amenities, and proximity to major transportation links. This area offers a mix of residential and commercial properties with reliable utilities and security services.

Ahodwo remains highly popular among expatriates and foreign investors for its upscale residential character, established infrastructure, and proximity to international schools and healthcare facilities. Property values in Ahodwo tend to be higher but offer better long-term appreciation potential.

Danyame and Asokwa neighborhoods provide good value options with growing development activity, improved infrastructure, and proximity to major commercial centers. These areas offer newer housing developments and better security arrangements than outer suburbs.

New estate developments and gated communities throughout Kumasi also attract foreign buyers seeking modern amenities, reliable utilities, and enhanced security features in planned residential environments.

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. Vaal - First Time Property Buyers Ultimate Guide
2. Landmark Homes - Buying Property in Ghana
3. The African Investor - Kumasi Property
4. The African Investor - Ghana Property Taxes
5. Absa Ghana - Home Loan Options
6. Zea Homes - Property Purchase from Abroad
7. Vaal - Mortgage Financing Options
8. The African Investor - Ghana Real Estate for Foreigners