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Property prices in Kumasi have increased by 5% in 2024, with further growth expected as we reach mid-2025.
The city's real estate market is experiencing robust expansion driven by rapid urbanization, major infrastructure projects including the Kumasi International Airport expansion, and growing demand from both local buyers and West African investors. With annual transaction volumes reaching US$1.7 billion and the population projected to exceed 5.3 million by 2035, Kumasi is emerging as Ghana's next real estate investment hub.
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.
Property prices in Kumasi rose 5% in 2024 and are forecast to grow 5-10% annually over the next five years, driven by infrastructure development, population growth, and foreign investment.
Three-bedroom houses average GHS 1.2 million ($80,000), making Kumasi significantly more affordable than Accra while offering higher rental yields of 8-12%.
| Property Type | Current Price Range | Growth Trend |
|---|---|---|
| 3-Bedroom House | GHS 1.2 million (~$80,000) | 5% annual increase |
| Land (Ridge area) | $765 per square meter | 10-15% near airport zones |
| Land (Nhyiaeso) | $200 per square meter | Moderate growth |
| Mid-tier Plots | GHS 35,000-350,000 | Stable appreciation |
| Premium Plots (Ahodwo) | GHS 720,000-1,350,000 | Strong demand growth |
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.
How much have property prices increased in Kumasi recently?
Property prices in Kumasi increased by 5% throughout 2024, marking a steady appreciation trend as we enter mid-2025.
This growth rate reflects Kumasi's emergence as a significant real estate investment destination, driven by rapid urbanization and major infrastructure improvements. The Kumasi International Airport expansion has been particularly influential, creating ripple effects across the property market. Areas within 15 kilometers of the new airport have seen even stronger growth, with land and property prices rising by 10-15% since the airport's launch.
The luxury property segment and rental yields are experiencing particularly strong increases, especially as affluent expatriates and West African investors enter the market. With annual real estate transactions reaching approximately US$1.7 billion, Kumasi's property market demonstrates robust activity and investor confidence.
Compared to five years ago in 2020, current property prices are 20-30% higher, reflecting steady appreciation as Kumasi has developed into a major commercial and logistics hub. Looking back ten years to 2015, land and property prices have more than doubled in many neighborhoods, particularly those near new infrastructure and commercial centers.
It's something we analyze thoroughly in our Ghana property pack.
Which neighborhoods in Kumasi are seeing the fastest price increases in 2025?
Several Kumasi neighborhoods are experiencing particularly rapid price appreciation as of June 2025, led by areas near major infrastructure projects.
Santasi stands out with rising values due to its proximity to major roads and commercial areas, making it increasingly attractive to both investors and end-users. Daban has emerged as a hotspot for appreciation potential, noted for its affordability combined with strong growth prospects tied to new development projects in the area.
Ahodwo remains a prime location for mid-sized family homes and mixed-use properties, with prices rising steadily due to its proximity to the business district. The neighborhood continues to attract middle-class buyers and investors seeking stable returns in an established area.
Areas within 15 kilometers of the new Kumasi International Airport have become the fastest-appreciating zones, with land and property prices increasing by 10-15% since the airport's launch. Investors are actively targeting these zones for high-end developments, anticipating continued growth from increased business travel and international connectivity.
Ridge represents the premium market segment, with land prices averaging $765 per square meter, while more affordable options exist in Nhyiaeso at $200 per square meter and Adiebeba at $100 per square meter.
What are the current average property prices in Kumasi as of June 2025?
Property prices in Kumasi vary significantly by type and location, but remain substantially more affordable than Ghana's capital city.
| Property Type | Price Range | Location | Notes |
|---|---|---|---|
| 3-Bedroom House | GHS 1.2 million (~$80,000) | City average | 5% increase from 2024 |
| Land (Premium) | $765/sqm | Ridge area | High-demand zone |
| Land (Mid-tier) | $200/sqm | Nhyiaeso | Growing neighborhood |
| Land (Affordable) | $100/sqm | Adiebeba | Entry-level option |
| Half Plots | GHS 35,000-350,000 | Mid-tier areas | Wide price range |
| Premium Plots | GHS 720,000-1,350,000 | Ahodwo/Asokwa | Prime locations |
| 3-Bed Apartment Rent | $978/month | City center | Purchase prices lower than Accra |
Which property types are experiencing the strongest price growth in Kumasi?
Different property types in Kumasi are showing varied growth patterns, with luxury apartments and student housing leading the surge.
Luxury apartments are experiencing high price growth driven by increasing demand from expatriates and affluent West African buyers, particularly Nigerians who view Kumasi as an attractive investment destination. This segment benefits from the city's improving infrastructure and growing international connectivity through the expanded airport.
Student housing is seeing strong rental price growth due to the ongoing expansion of educational institutions in Kumasi. With the city hosting several universities and technical schools, demand for quality student accommodation continues to outpace supply, driving both rental rates and property values upward.
Mid-range houses maintain moderate growth at approximately 5% annually, supported by the expanding middle class and steady urbanization. Commercial units in airport zones and business districts show strong appreciation, boosted by infrastructure improvements and increased business travel.
Interestingly, affordable housing prices remain stable with slight drops in some areas due to government incentives and new supply entering the market through programs like "My Home, My Peace" and the PPP Act, which have reduced development costs by up to 40%.
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How do current Kumasi property prices compare to Accra and other Ghanaian cities?
Kumasi remains significantly more affordable than Accra while offering better investment yields as of June 2025.
In prime areas, a three-bedroom house in Kumasi costs between $80,000-$100,000, while similar properties in Accra exceed $200,000. This substantial price difference makes Kumasi attractive for both first-time buyers and investors seeking better value. Land prices show even more dramatic differences, with prime Kumasi land at Ridge averaging $765 per square meter compared to Accra's $1,000-$2,500 per square meter.
The price per square foot in Accra's city center reaches $372.99, while Kumasi offers considerably lower rates, though exact figures aren't specified in current data. This price gap is narrowing as demand increases and Kumasi develops its infrastructure, but the city still offers substantial savings for property buyers.
Rental yields in Kumasi are projected to be higher than Accra's, with estimates ranging from 8-12%. Accra's rental market faces saturation in some segments, leading to compressed yields, while Kumasi's growing population and economic diversification support stronger returns for property investors.
These comparisons position Kumasi as Ghana's next real estate investment hub, offering a combination of affordability, growth potential, and improving infrastructure that increasingly rivals the capital city.
What impact are the new VAT regulations having on Kumasi property prices in 2025?
Ghana's reintroduction of VAT on property transactions in 2024 has created a new cost structure affecting Kumasi's real estate market.
Residential properties from developers now carry a 5% VAT plus a 1% COVID levy, totaling 6% additional cost on transactions. This applies to new developments and has slightly dampened demand in some segments while pushing buyers toward existing properties or direct purchases from individual sellers not subject to VAT.
Commercial properties and land for non-dwelling use face a steeper 15% VAT plus 1% COVID levy, totaling 16% additional cost. This higher rate has particularly impacted commercial real estate development, though strong demand from businesses expanding into Kumasi has helped absorb these costs.
Property tax in Kumasi averages 1.5% of assessed value, notably higher than Accra's 0.17% for similar properties. This higher ongoing cost is factored into investment calculations but hasn't significantly deterred buyers given Kumasi's lower purchase prices and higher rental yields.
Despite these tax implications, the market has shown resilience with continued 5% annual price growth, suggesting that underlying demand factors outweigh the increased transaction costs. It's a topic we explore in detail in our Ghana property pack.
How is the 2025 economic stimulus plan affecting Kumasi's property market?
The government's 2025 economic stimulus plan is significantly boosting Kumasi's property values through major infrastructure investments.
Major spending on roads, drainage systems, and transport infrastructure, including the new Bus Rapid Transit (BRT) system, has improved accessibility across the city. Newly connected neighborhoods are experiencing accelerated property value growth as commute times decrease and area amenities improve. These infrastructure improvements have made previously peripheral areas more attractive to both residents and investors.
The stimulus has created substantial job opportunities, spurring population inflows that support housing demand and price growth. With Kumasi's population rising from 3.77 million in 2023 to 3.90 million in 2024, and projections exceeding 5.3 million by 2035, the increased economic activity translates directly into real estate demand.
Construction activity has surged, with developers rushing to meet growing demand. While construction costs remain elevated due to material prices, recent reductions in fuel costs have provided some relief, allowing more projects to proceed profitably.
The multiplier effect of infrastructure spending continues to ripple through the economy, with improved business confidence leading to commercial real estate expansion and residential developments targeting the growing workforce.
What role are foreign investors and diaspora remittances playing in Kumasi's property price trends?
Foreign investment and diaspora remittances are becoming increasingly influential in driving Kumasi's property prices upward.
- Affluent Nigerians and other West Africans are investing heavily in Kumasi, particularly targeting high-demand neighborhoods and luxury properties
- Annual real estate transactions in Kumasi total approximately US$1.7 billion, with a significant portion attributed to foreign and diaspora investment
- Developers are increasingly designing projects specifically to appeal to the diaspora market, recognizing their purchasing power and investment appetite
- The national trend shows remittances as a growing force in real estate, with Kumasi benefiting from this capital inflow
- International investors view Kumasi as undervalued compared to other West African cities, driving speculative investment
- The expanded Kumasi International Airport has made the city more accessible to foreign investors, facilitating property viewings and management
- Currency advantages for dollar-earning diaspora members make Ghanaian property particularly attractive during periods of cedi depreciation
We made this infographic to show you how property prices in Ghana compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are the main factors driving property demand in Kumasi as we reach mid-2025?
Multiple converging factors are creating strong upward pressure on Kumasi property prices in 2025.
Population growth stands as the primary driver, with Kumasi's population increasing from 3.77 million in 2023 to 3.90 million in 2024, and projections indicating it will exceed 5.3 million by 2035. This rapid growth creates sustained demand for housing across all market segments, from affordable units to luxury properties.
Infrastructure development, particularly the Kumasi International Airport expansion and new highway connections, has transformed the city's accessibility and attractiveness. The BRT system implementation further enhances urban mobility, making previously distant neighborhoods viable residential options and driving up their values.
Kumasi's diversified economy provides resilience and steady property demand. The city's strength in trade, manufacturing, education, and emerging tech sectors creates employment opportunities that support real estate investment. Unlike mono-industrial cities, Kumasi's economic diversity reduces market volatility.
The growing middle class and influx of expatriate professionals drive demand for modern, amenity-rich housing. These buyers seek properties with contemporary features, security, and proximity to international schools and shopping centers, pushing developers to upgrade their offerings and commanding premium prices.
How are construction costs and land availability affecting Kumasi property prices?
Construction costs and land scarcity in central areas are key factors pushing Kumasi property prices upward.
Construction costs remain elevated due to high material prices, though recent reductions in fuel costs and some construction materials have provided minor relief. Cement prices are expected to fall by June 2025 according to the Chamber of Construction Industry, which could help moderate new development costs. However, imported materials and equipment continue to face currency risk, keeping overall construction expenses high.
Land availability varies dramatically by location. In central Kumasi areas, scarcity is acute, driving prices significantly upward as developers compete for remaining parcels. Prime areas like Ridge see land prices at $765 per square meter, reflecting this scarcity premium.
Suburban areas show different dynamics, with prices stabilizing or even dropping slightly as demand shifts toward the city center. This creates opportunities for long-term investors willing to wait for urban expansion to reach these areas. Areas like Adiebeba offer land at $100 per square meter, presenting entry-level investment options.
The mismatch between central area demand and suburban supply continues to shape the market, with developers increasingly looking at infill development and higher-density projects to maximize land use in prime locations.
What are expert forecasts for Kumasi property prices over the next 5, 10, and 20 years?
Real estate experts project sustained growth for Kumasi's property market across multiple time horizons.
| Time Period | Price Growth Projection | Key Drivers | Market Segments |
|---|---|---|---|
| Next 5 Years | 5-10% annually | Infrastructure completion, population growth | All segments, especially near infrastructure |
| Next 10 Years | 50-70% total increase | Urbanization, closing gap with Accra | Premium and luxury strongest |
| Next 20 Years | Major regional hub status | Sustained population growth, international investment | Comprehensive market transformation |
| Rental Yields | 8-12% projected | Supply-demand imbalance | Student housing, luxury apartments |
| Affordable Housing | Stabilization expected | Government programs, new supply | Mid-range may see modest drops |
| Comparison to Accra | Gap narrowing | Relative undervaluation | Still 50-70% cheaper than capital |
| Risk Factors | Currency, political stability | Global economy, local governance | Luxury most vulnerable to shocks |
What government policies and incentives are shaping Kumasi's property market in 2025?
Government policies are creating both opportunities and challenges for Kumasi's property market as of June 2025.
The "My Home, My Peace" affordable housing program and the PPP Act have successfully reduced development costs by up to 40% for qualifying projects. These incentives have encouraged developers to increase affordable housing supply, helping to moderate price increases in the lower and middle market segments. This government support ensures that property ownership remains accessible to a broader population despite overall market appreciation.
Infrastructure investments through the 2025 budget have allocated significant resources to Kumasi's development. The approved budget includes funding for road improvements, drainage systems, and public transportation, all of which enhance property values in affected areas. The government's commitment to making Kumasi a regional hub drives confidence in long-term appreciation.
Tax policies present a mixed picture. While the 5% VAT on residential properties adds to transaction costs, the stable property tax rate of 1.5% provides predictability for investors. The government has indicated no plans for major tax increases, maintaining a relatively investor-friendly environment.
Regulatory improvements in land registration and title documentation have reduced transaction risks, attracting more formal investment. These administrative reforms, combined with physical infrastructure development, create a comprehensive framework supporting sustained property market growth. We cover these policy impacts extensively in our Ghana property pack.
Conclusion
Yes, property prices in Kumasi are definitely going up, with a clear upward trajectory expected to continue through 2025 and beyond. The market recorded a solid 5% increase in 2024, and as we reach mid-2025, all indicators point to sustained growth. Expert forecasts project annual price increases of 5-10% over the next five years, with some neighborhoods near the new international airport already experiencing 10-15% appreciation. With a growing population, major infrastructure investments, strong foreign investment interest, and Kumasi's emergence as Ghana's second major real estate hub, the answer is unequivocally: Yes a lot.
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 property market presents a compelling investment opportunity in 2025, with prices still 50-70% lower than Accra while offering superior rental yields of 8-12%. The combination of rapid urbanization, infrastructure development, and growing international interest positions the city for sustained appreciation.
For investors and homebuyers considering Kumasi, the current market offers an attractive entry point before prices climb further. With the population projected to reach 5.3 million by 2035 and major infrastructure projects underway, the fundamentals support continued growth. Whether you're seeking a family home or investment property, Kumasi's real estate market in 2025 represents a rare combination of affordability and growth potential in West Africa.
Sources
- Kumasi Real Estate Market Analysis
- Ghana Real Estate Market Report 2022
- Numbeo Property Investment Comparison
- Kumasi Real Estate Trends
- Kumasi Property Market Video Analysis
- Kumasi Property Investment Guide
- Ghana Real Estate Forecasts 2025
- Kumasi Investment Hub Analysis
- Ghana Property Market 2025
- Foreign Investment in Ghana Real Estate