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What is happening in Kumasi’s real estate market? Are prices going up or down? Is Kumasi still a hotspot for foreign investors? How is Ghana’s government impacting real estate policies and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Adum to Asokwa and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Kumasi real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Government support programs will keep affordable housing rents stable
The Ghanaian government is making significant strides in affordable housing, ensuring rents remain stable.
In 2023, the Ministry of Works and Housing in Ghana allocated GH₵474,272,618 for affordable housing projects, marking a 48.05% increase from the previous year. This shows a strong commitment to tackling the housing deficit and keeping rent prices steady.
Projects like the Kpone Affordable Housing Project, a collaboration between the Ghanaian government and a US-Ghanaian firm, are crucial. This initiative aims to build 2,500 affordable housing units, offering more options for buyers and helping stabilize rents as it nears completion.
Another successful initiative is the John Agyekum Kufuor Affordable Housing Project in Kumasi. These projects not only provide affordable housing but also play a key role in maintaining stable rent prices in the region.
With these efforts, the government is effectively increasing the supply of affordable housing, which is essential for rent stabilization. The focus on such projects highlights the importance of government intervention in the housing market.
These initiatives are not just about building homes; they are about creating a sustainable housing market where rents remain stable, benefiting both current and future residents.
Sources: Ministry of Finance Ghana, Houses for Sale in Ghana
2) Foreign buyers will prioritize properties near international schools and amenities
Foreign buyers love properties near international schools and amenities for the convenience and community vibe.
In recent years, especially around 2023 and 2024, expats have been flocking to neighborhoods that blend local and international residents, with easy access to supermarkets and restaurants. Ahodwo and Nhyiaeso in Kumasi are prime examples of this trend.
With more Ghanaian students heading abroad for studies, there's a clear push for quality education options at home. This shift makes homes near international schools a hot commodity for foreign buyers who want top-notch education for their kids.
Properties close to these schools not only offer lifestyle perks but also promise higher property values and rental yields. This financial upside is a big draw for foreign investors.
Sources: Expat Exchange, ApplyBoard
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) Foreign investment in Kumasi's residential real estate market will increase
Kumasi is becoming a hotspot for foreign investment in residential real estate.
With urbanization on the rise, Kumasi's population is set to grow, hitting an estimated 4.2 million by 2030. This surge means more people will need homes, making it a prime opportunity for investors. Imagine a bustling city where the demand for housing is constantly climbing, offering a lucrative market for those ready to dive in.
Infrastructure is another game-changer. Thanks to the Sustainable Urban Mobility Plan, Kumasi is getting a facelift with better public transport and new cycling lanes. These upgrades make the city more appealing, drawing in more residents and, in turn, boosting real estate interest. It's like giving the city a fresh coat of paint, making it shine brighter for potential investors.
Ghana's property laws are a big plus for foreign buyers. They make it easier for international investors to own property, creating a welcoming environment. This legal ease, paired with the buzz from international developers, sets the stage for a thriving investment scene. It's like rolling out the red carpet for foreign investors.
Joint ventures between local and foreign companies are popping up, showing a team effort in real estate development. This collaboration signals a strong market, encouraging more foreign investment. It's like a handshake across borders, making the market even more attractive.
Sources: GNBCC, MyJoyOnline, Mobilise Your City
4) Prices in high-demand neighborhoods will rise due to foreign buyers entering the market
Foreign buyers are playing a big role in Kumasi's real estate market, with affluent Nigerians and other West Africans looking for stable investments.
In Kumasi, the real estate scene is buzzing thanks to urbanization and a growing middle class, which is pushing up property prices in high-demand neighborhoods. The recent expansion of Kumasi International Airport has made the city more accessible, adding to the upward trend in property values.
Real estate analysts point out that foreign investment is a major driver of rising property prices in Kumasi. The city offers a favorable business environment, attracting foreign expatriates and wealthy West Africans who are keen on mid-priced properties.
With the influx of foreign buyers, the real estate market in Kumasi is seeing a high volume of transactions, valued at around US$1.7 billion annually. This surge is reshaping the market dynamics, especially in sought-after areas.
Local insiders note that the presence of foreign buyers is particularly noticeable in certain neighborhoods, where property prices are climbing due to increased demand. This trend is expected to continue as more international investors eye Kumasi.
As Kumasi becomes more connected and accessible, the city's appeal to foreign investors grows, further driving up property prices in key areas. This makes it a hot spot for those looking to invest in real estate.
Sources: Kumasi Investment Opportunity Real Estate, Expert Forecasts for the 2025 Housing Market
5) New road projects will improve connectivity between Kumasi and nearby areas
In 2023 and 2024, the government has poured significant investment into road infrastructure around Kumasi.
One standout project is the Kumasi Lake Roads and Drainage Extension, which was nearly complete by late 2022. This project is a game-changer for the city, as it not only improves road safety but also tackles flood management, making life easier for residents.
By 2024, the completion of projects like the Kumasi Lake Road and Drainage Extension has shown tangible benefits in urban mobility. People can now move around the city more easily, and ongoing efforts like the Kumasi Inner City Roads project are further boosting connectivity with new bridges already in place.
Recent traffic studies reveal that travel times have decreased thanks to better road conditions. The Ahodwo-Santasi route, for example, now sees less variability in travel times, especially during off-peak hours, making commutes smoother for everyone.
These improvements are crucial for both private and public transport, as they make daily commutes more efficient and less stressful. The new road projects are not just about getting from point A to B; they are about enhancing the overall quality of life in Kumasi.
With these developments, Kumasi is becoming a more connected city, making it an attractive option for potential property buyers looking for convenience and improved living conditions.
Sources: Ministry of Finance Ghana, International Journal for Traffic and Transport Engineering, YouTube, Department of Urban Roads Ghana
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6) Suburban property prices will drop as people relocate closer to city centers
Kumasi's population is nearing 3.9 million in 2024, showing a clear trend of urbanization.
The bustling Kumasi Central Market, the largest in West Africa, now boasts 45,000 stalls and stores. This expansion highlights the growing demand for city center amenities, making urban living more appealing and potentially driving up property prices.
With the Kumasi Urban Mobility and Accessibility Project (KUMAP) enhancing public transport, access to the city center is becoming easier. Improved transportation means more convenience, drawing people closer to the heart of the city.
The Kumasi Metropolitan Assembly is thriving as a commercial hub, attracting a youthful workforce with abundant job opportunities. This makes the city center a magnet for those seeking employment and a vibrant lifestyle.
As more people flock to the city center for better amenities and job prospects, some suburban areas might see a dip in property prices. The shift towards urban living is reshaping the real estate landscape.
With these developments, Kumasi is becoming a hotspot for those looking to invest in property, offering a dynamic urban environment that appeals to both residents and investors alike.
Sources: World Population Review, Flow DB, MOFEP, World Bank
7) Kumasi’s luxury property prices will increase as affluent buyers enter the market
Kumasi is becoming a hotspot for luxury property buyers.
With more high-net-worth individuals emerging in Ghana, Kumasi is seeing a surge in demand for upscale homes. Back in 2023, it was projected that the number of Ultra-High-Net-Worth Individuals (UHNWIs) in Ghana would increase by 53%. This naturally led to a higher interest in luxury properties.
The city's economic growth is another key factor. Kumasi offers a business-friendly environment where capital and profits can be transferred freely, attracting affluent investors. This economic stability, along with an influx of wealthy expatriates and foreign investors, is driving the demand for luxury homes.
High-end infrastructure and amenities are also making Kumasi more appealing. The city has seen improvements in roads, public transport, and luxury retail spaces, which have enhanced its attractiveness. These developments, coupled with media reports highlighting Kumasi as a luxury real estate hotspot, are drawing more affluent buyers.
Insider knowledge suggests that luxury property prices in Kumasi will continue to rise as more affluent buyers enter the market. The combination of economic growth, improved infrastructure, and a growing number of wealthy individuals is creating a perfect storm for the luxury real estate sector.
For those considering investing in Kumasi, now might be the time to act. The city's blend of economic opportunity and lifestyle appeal is making it a prime destination for luxury property investment.
Sources: Portfolio Property, Columbia University, Jiji Ghana
8) Luxury property yields will slightly rise as expatriate demand grows
The luxury property market in Kumasi is buzzing with activity, thanks to an influx of expatriates moving to the area.
Back in 2024, Kumasi's metro area population hit 3,903,000, marking a significant rise in new residents, including many expatriates. This surge is largely due to government investments in infrastructure, which have improved roads and facilities, making the city more attractive for living.
These improvements have led to a noticeable increase in housing demand, especially in urban hotspots like Kumasi. As a result, property values and rental prices have climbed, making luxury properties particularly appealing to expatriates who are looking for modern living spaces.
Developments like Kensington Heights are a testament to this growing demand. These luxury apartments offer a range of options, from suites to penthouses, catering to affluent expatriates and business professionals who value modern amenities and comfort.
With the rise in demand, luxury property yields are expected to see a slight increase. This is driven by higher demand from expatriates seeking high-end accommodations in Kumasi.
Sources: Macrotrends, ET Edge Insights, GNA
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) Luxury property rents will rise as demand from foreign professionals grows
Kumasi is becoming a hotspot for foreign companies, with more businesses setting up shop in the city.
One major sign of this trend is the new Office of the Registrar of Companies' complex, which not only serves Kumasi but also extends its reach to the Ashanti, Western, Oti, and Eastern regions. This expansion is drawing in foreign professionals who are looking for places to live.
Kumasi's economy is buzzing, turning it into a budding business hub. Luxury property developments are popping up, like the Airport City Housing Development and new units in Danyame, catering to the tastes of these incoming professionals.
Infrastructure is getting a facelift too, with projects like a multi-storey car park and a new bus terminal. These improvements make Kumasi more attractive for luxury living, especially for those used to a certain standard of living.
Expat-friendly amenities are on the rise, including hotels that can host international conferences. This makes the city even more appealing to foreign professionals who need both comfort and convenience.
With all these developments, the demand for luxury rentals is set to climb, driven by the influx of foreign professionals seeking high-end accommodations.
Sources: The BFT Online, MOFEP
10) Suburban rents will drop as demand moves to city centers
Kumasi's urban population is booming, with 3,903,480 residents expected by 2024.
With the city center becoming a hotspot, substantial investments like the $5.8 billion light rail project are set to kick off in 2025, aiming to make urban life more convenient and attractive.
Areas like Kejetia/Central Market are buzzing, and property prices are climbing due to the high demand driven by vibrant market activities and bustling commodity-based markets.
The upcoming light rail project is a game-changer, boosting accessibility to the city center and making it a more appealing place to live and work.
As the city center becomes more accessible, more people are likely to move there, shifting demand away from suburban areas.
Sources: World Population Review, United Nations Ghana, Cities Alliance
11) Property interest in Patasi will decline due to noise pollution from new industrial activities
The Patasi area is facing a challenge with increasing noise pollution from new industrial activities.
Residents in similar urban areas often find themselves dissatisfied with high noise levels, which can lead to a desire to relocate to quieter neighborhoods. This isn't just about being annoyed; long-term noise exposure can lead to health issues like sleep problems and stress, making these areas less appealing.
Real estate agents have noticed that potential buyers are wary of noise, fearing its impact on their health and overall well-being. This concern is often amplified by media reports that highlight these noise issues, further discouraging interest in properties.
In areas like Patasi, where industrial noise is on the rise, property values tend to decline as the quality of life is perceived to be compromised. This trend is a common pattern in urban settings where noise pollution is prevalent.
Buyers are increasingly prioritizing peace and quiet, and noise pollution is a major deterrent in their decision-making process. The constant disturbance from industrial activities makes it difficult for residents to enjoy their homes.
As noise levels continue to rise, the Patasi area may see a further decline in property interest, driven by the growing awareness of the negative impacts of noise on health and lifestyle.
Sources: PubMed, UC Davis Environmental Health, Counselors of Real Estate, European Environment Agency
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12) Government interventions will keep affordable housing prices stable
In 2023 and 2024, the government made bold moves to keep affordable housing prices stable in Kumasi.
One major step was boosting funds for projects like the Asokore Mampong housing initiative. Despite some bumps along the way, this project showed the government's strong commitment to affordable housing. The Local Governance Act 936 of 2016 also played a big part by giving local governments more control over public markets, which helped balance the supply and demand for land and housing units.
These policies were crucial in managing municipal debt and encouraging partnerships between the public and private sectors. Such collaborations are key to keeping housing prices steady. The government also focused on increasing the housing supply to tackle the housing deficit in Kumasi. Although we don't have the exact number of new housing units, ongoing efforts are expected to help stabilize prices.
Partnerships with private developers to build low-cost homes further support this stability. These initiatives are part of a broader strategy to ensure that affordable housing remains accessible to more people. The government's actions reflect a clear understanding of the need for a balanced approach to housing development.
By working closely with private developers, the government is not only increasing the housing supply but also ensuring that these homes are affordable. This approach is crucial for maintaining stable housing prices in the long run. The focus on public-private partnerships is a smart move, as it leverages the strengths of both sectors.
Overall, these efforts show a comprehensive strategy to keep affordable housing prices stable in Kumasi. The government's proactive measures and collaborations with private developers are key to achieving this goal.
Sources: Emerald Insight, Cities Alliance, Unimovers
13) Stricter building regulations will enhance the quality of new residential projects
Stricter building regulations can really boost the quality of new homes.
In places like Kumasi, unauthorized buildings have been a big problem, leading to safety issues like the collapse of a six-story building back in 2012. By tightening up the rules, we can make sure all new constructions meet safety standards, reducing the risk of such incidents. A study on building permits in Kumasi shows a high number of unauthorized structures, which often have defects. Stricter regulations could help fix this by ensuring all buildings are properly checked and approved.
Take Kenya, for example. They introduced a National Building Code that supports energy efficiency and natural ventilation. While it's not mandatory, it sets a good example of how such codes can lead to better building practices. This could be a model for Ghana, showing how stricter regulations can lead to better homes.
The International Building Code (IBC) is another great example. It's used in many places, including Ghana, and focuses on public health and safety. Following these standards naturally leads to better construction quality. Adopting these codes more widely could really improve the quality of new homes in Kumasi.
In Kumasi, the lack of proper building permits has been a long-standing issue. Stricter regulations could ensure that all constructions are properly vetted and approved, reducing the number of unauthorized structures. This would not only improve safety but also enhance the overall quality of residential developments.
By looking at other regions where stricter regulations have improved residential developments, we can see the potential benefits for Kumasi. Implementing similar standards could lead to safer and higher-quality homes.
Sources: International Code Council, Core.ac.uk, IEA
14) Updated property tax laws will affect rental property profitability
Changes in property tax laws can significantly impact the profitability of rental properties.
Imagine you're a landlord in New York, where property tax collections have been climbing by an average of 6.4% annually from 2012 to 2021. This increase can squeeze your profit margins, as property taxes are a recurring cost you must pay, no matter how much rent you collect. You might think about raising the rent to cover these costs, but that's not always possible. Market conditions or rent control laws can limit your ability to pass these expenses onto tenants.
In Minnesota, landlords faced a different challenge when changes to the homestead market value exclusion shifted the tax burden onto rental property owners. This shift can make rental properties less appealing as investments, potentially leading to a decrease in property values or slowing down property development. Such changes can force landlords to rethink their long-term investment strategies.
When property taxes rise, landlords often find themselves in a tough spot. They might want to increase rent to cover the higher taxes, but doing so isn't always feasible. Market conditions or rent control laws can restrict rent hikes, leaving landlords to absorb the extra costs. This can lead to reduced overall profit margins, making it harder to maintain or improve properties.
For those considering buying rental properties, it's crucial to understand how these tax changes can affect your bottom line. In some areas, landlords have had to adjust their strategies significantly due to tax law shifts. This can mean re-evaluating the potential profitability of a property before making a purchase.
Ultimately, staying informed about property tax laws and potential changes is essential for anyone in the rental property market. These laws can have a direct impact on your investment's profitability, influencing everything from rent prices to property values. Being proactive and adaptable can help you navigate these challenges effectively.
Sources: Steadily, IBO's Real Property Tax Forecast, Ehlers Inc.
We have made this infographic to give you a quick and clear snapshot of the property market in Ghana. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Interest in gated communities will grow due to rising security concerns
In Kumasi, security concerns have been rising over the past few years.
Residents are increasingly worried due to moderate crime levels, including violent incidents like assault and armed robbery. This has led to a crime index of 50.00, which is quite significant for the area.
Property crimes such as vandalism and theft are also common, with a crime index of 39.58. These issues are pushing people to look for safer places to live.
The media in Ghana has been actively reporting on these incidents, which has only added to the public's anxiety. This has led to a surge in demand for private security services, as people are eager to find ways to protect themselves.
Real estate trends show that gated communities are becoming more popular as safety becomes a top concern for homebuyers. Developers are catching on and are investing heavily in security features to meet this demand.
16) Demand for accessible and single-story homes will rise due to an aging population
Kumasi's aging population is on the rise, with more people reaching retirement age every year.
By 2035, Kumasi's population is expected to grow significantly, leading to a higher number of older adults. This demographic shift means more retirees will need homes that suit their lifestyle. As people age, they often face mobility challenges, making single-story homes a practical choice. These homes are easier to navigate, reducing the risk of falls and providing a safer living environment.
In Kumasi, there's a noticeable trend of retirees, both local and international, seeking comfortable living arrangements. Many are drawn to the city for its welcoming atmosphere and amenities. This influx of retirees is driving up the demand for homes that are not only cozy but also accessible. Single-story homes fit the bill perfectly, offering ease of movement and convenience.
Retirees often prioritize accessibility in their housing choices. Single-story homes eliminate the need for stairs, making daily life simpler. This is particularly important for those with mobility issues or disabilities. The demand for such homes is growing as more people recognize the benefits of living in a space designed with their needs in mind.
Moreover, Kumasi's appeal to retirees is not just about the homes themselves. The city offers a vibrant community and a range of services that cater to older adults. This makes it an attractive destination for those looking to enjoy their retirement years in comfort. As a result, the housing market is adapting to meet these needs, with more single-story homes being built.
For anyone considering buying property in Kumasi, understanding this trend is crucial. Investing in accessible, single-story homes could be a wise decision, given the increasing demand from the aging population. This shift in the market presents opportunities for both buyers and developers to cater to a growing demographic.
Sources: Expat Exchange, World Population Review
17) Daban will attract more interest with planned green spaces and parks
The Daban neighborhood is on the rise, thanks to planned green spaces and parks.
In recent years, the Kumasi Metropolitan Assembly has been pouring resources into green infrastructure, aiming to boost the city's livability. This includes creating new parks and green spaces, which are part of a larger strategy to make areas like Daban more appealing. Imagine strolling through lush parks right in your neighborhood!
It's no secret that property values tend to climb in areas with well-maintained green spaces. Just look at neighborhoods like Patasi and Ahodwo in Kumasi. They've seen property values rise over the years, thanks to their significant green spaces. Daban could be next in line for this kind of boost as its green spaces take shape.
Urban planning documents, such as the Greater Kumasi Urban Development Plan, highlight the importance of parks and gardens. These plans likely detail the development of parks in Daban, adding to the neighborhood's potential charm. Residents in Kumasi have shown a strong preference for living near parks, suggesting that Daban's new green areas will draw more people in.
Community surveys consistently reveal that people love living near green spaces. This means that as Daban develops its parks, it's likely to attract more residents. The neighborhood's transformation could make it a sought-after spot for homebuyers looking for a blend of urban living and nature.
Sources: World Bank Group, University of Birmingham, University of Twente
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18) Tafo will attract more interest with new healthcare facilities being developed
The Tafo neighborhood is buzzing with interest thanks to new healthcare facilities being built.
In recent years, Tafo has seen a surge in healthcare investments, including the completion of Maternity Blocks at Tafo Hospital and Kumasi South Hospital. This shows a strong push to enhance healthcare services in the area, making it a more attractive place to live.
Typically, when new healthcare facilities pop up, property values in nearby areas tend to climb. While we don't have exact numbers for Tafo, this pattern is common elsewhere, hinting that Tafo might see similar growth. The Old Tafo Municipal Assembly is also expecting population growth, likely spurred by these new healthcare developments.
Living close to healthcare facilities often means higher demand for rental properties. This demand can boost rental prices and property values, drawing in both investors and new residents. Real estate agents have noticed more inquiries about properties in areas with major developments like these, suggesting Tafo is on the radar.
For those considering a move or investment, Tafo's new healthcare facilities could be a game-changer. The area is becoming more appealing, not just for its improved services but also for the potential rise in property values.
With these developments, Tafo is shaping up to be a promising spot for property buyers. The combination of healthcare improvements and expected population growth makes it a neighborhood to watch.
Sources: Ghana Today, MOFEP, BDC Network, MOFEP
19) Smart home technology will be a major selling feature for new properties in Kumasi
Smart home technology is becoming a big deal in Kumasi, making properties more attractive to buyers.
Back in 2023 and 2024, the consumer IoT market in Ghana was already picking up speed, fueled by a shift towards digital lifestyles. This trend is expected to keep growing, with the market projected to expand significantly by 2030. People in Ghana are increasingly interested in tech-driven home solutions, seeking convenience, security, and efficiency in their daily lives.
In Kumasi, the demand for smart home products is on the rise. Real estate listings are now highlighting these features as key selling points, making properties more appealing to tech-savvy buyers. Homes equipped with smart technologies not only appreciate in value but also attract more interest from potential buyers and renters.
Millennial buyers, in particular, are showing a strong preference for tech-enabled homes. Surveys have revealed that a large percentage of them are willing to pay extra for smart features, indicating a robust demand for these modern conveniences. This trend is reshaping the real estate landscape in Kumasi, as more properties incorporate smart home technologies.
The revenues and volume of the Ghana Consumer IoT Market, especially in home automation, have been steadily increasing. This growth reflects a broader trend in Kumasi, where smart home technology is becoming a standard expectation for new properties. Buyers are now looking for homes that offer the latest in smart technology, making it a crucial factor in their purchasing decisions.
As the market continues to evolve, smart home technology is set to become an essential feature in Kumasi's real estate offerings. Properties with these advanced features are likely to see higher demand, as more buyers prioritize tech-savvy living environments.
Sources: Modern Ghana, 6Wresearch, Inoxoft, The Greens Ghana, NextMSC
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.