How To Invest In Real Estate In Ghana

Ghana’s real estate industry is a fast-growing one. Ghana is a country located in West Africa sharing borders with Togo and Cote D’Ivoire. This country’s rising real estate market is no news. We all know how fast Ghana’s tourism industry keeps growing day after day. Making it one of the hottest destinations to invest in real estate in West Africa.

The country ranked as the 7th wealthiest country in West Africa in 2017, the seventieth−most stable country in the world, and 58th most peaceful country in the world.

With the closet location to the center of the world, total land size of 238,533, a population of 27million and a free stable and Democratic country, Ghana is definitely one of the top countries to pay attention to in terms of real estate development.

In recent years, people have seen the benefits that have been reaped from investing in real estate in Ghana. This has led to an increase in real estate investment in the country formerly known as the Gold Coast. There are various considerations one has to take before investing in properties: they would have to do their homework, decide what type of property investment they will venture in, organize their finances, and finally search for the desired investment.

Investing In Real Estate In Accra

Accra is Ghana’s Capital city, with an estimated population of 2.27 million people and a total land size of 225.67 km² (87.13 sq mi). Accra is not only one of the beautiful cities in Africa but also the busiest and the wealthiest city in the Country. Investing in real estate in Accra should be one of your main targets.

Homework

Before purchasing any type of property there are certain questions individuals have to ask themselves such as; what type of property do they want, what is their budget to acquire the property, and which area they will like to purchase the property. You will have to be strategic about your purchase. If individuals are intending on purchasing land in-order to construct residential properties for the purpose of selling, they will have to buy the property where traveling time to all the business hubs is minimized.

A cautionary tale would be that of Trassaco Valley. When it first emerged in the 2000s it was the pinnacle of the gated communities in Accra. Due to it being near the Tema motorway, it was a quick drive to reach Independence Avenue. As time went by, more and more residential homes were being built near Trassaco causing an influx in traffic: this had a ripple effect of reducing the price of homes in Trassaco as compared to Cantonments and Airport Hills.

Investment type

There are several types of property investment individuals can look at in-order to reap profits. There are rental properties, where individuals can rent out their properties to tenants for a specific amount of time and an agreed price.

There are REITs (Real Estate Investment Trusts). REITs are a form of collective investment schemes that pools capital from investors and uses the acquisition of income-generating real estate, mortgage loans, or a combination of both. Another form of real estate investment would be land flipping. This is basically acquiring land and then reselling it quickly at a higher price.

Finally, property development would be the last type of investment. In property development, individuals purchase properties in nice neighborhoods, then develop them into luxury apartments, high-class condos, and commercial structures. They then sell them at a high-profit margin.

Finance

Depending on the type of property investment, individuals will have to find a way to fund their investment. They can either take out mortgages, or use their own capital to fund it. If the individual is going to take out a mortgage they will have to decide which mortgage they will choose depending on their payment plan. If it is a corporation that is investing in real estate they can either fund their venture by taking out a loan from the bank or using their shareholder’s equity to finance the project.

Finding the desired property

Image source: Trassaco Group

After all the prior requisites have been completed, individuals can finally search for properties. It is usually recommended to solicit the services of an agent in-order to acquire a property. This would expedite the process and also minimize the risk factors of the transaction: such risks would include purchasing the property from a person that does not own the property or purchasing a property that has already been sold to various individuals.

Investing In Real Estate As a Foreigner in Ghana

Can foreigners invest in real estate in Ghana? The answer is yes they can. Obviously the procedure isn’t the same as that of a Ghanaian citizen. The majority of the land owned in the country is not owned by private organizations, most of the lands are stool lands. Before purchasing a property, It’s advisable to double-check to see if you are purchasing the property from the right owner.

To make things a lot easier for you, You can also purchase your property from an accredited real estate agent. This will prevent you from getting scammed or defrauded. Owning land in Ghana is mostly on leased terms.  It may vary from Twenty-five (25)  to 100+ years. Foreigners get a shorter duration, Even though these terms are still negotiable. It’s always advisable to discuss ownership and duration with your real estate agent.  The GIPC (Ghana Investment Promotion Centre) welcomes all investors to invest in the country.  For your questions and information about all your investment needs, Contact the Ghana Investment Promotion Centre.

List of Top Real Estate companies in Ghana

References

Denya developers, Investing in real estate in Accra today: is there cause for optimism, https://www.denyadevelopers.com/blog/investing-real-estate-in-accra
Meqasa, A Step by Step Guide to Investing in Property,https://meqasa.com/blog/a-step-by-step-guide-to-investing-in-property/
Tonaton,4 Simple Ways To Invest In Real Estate In Ghana, https://tonaton.com/blog/4-simple-ways-invest-real-estate-ghana/

See Also: Mortgage Companies in Ghana

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