How to Invest In Real Estate in Ghana

Real Estate in Ghana has experienced an upward scale in the past decade that has helped advance the country’s economy. In 2011, The World Bank officially recognized Ghana as 1 of 109 middle-income economies whose growth and developmental achievements have produced a positive effect in the world. Ghana’s economic growth and increasing supply of prime real estate assets make it one of Africa’s most promising markets for investors. The capital, Accra, is well placed as a hub for business and travel in West Africa and is expected to become a forerunner in the real estate market in the region in the foreseeable future.

If you’re considering real estate in Ghana, there are a few keys to investing you should consider:

Do Your Homework

First of all, you must start by doing your homework. You must first look at what type of property investment you want to consider, how much capital you can afford, what kind of neighbourhood you want to invest in, what are the current trends in the real estate economy, and finally what kind of return on investment you’re trying to make.

These questions will help pinpoint the exact property or type of investment you should consider. By answering these questions and researching on them, it would give you an inkling on which direction to go in and what exactly to invest in.

Buying Property as a Foreigner

Are foreigners allowed to do real estate investment in Ghana? The answer is yes they can. There are no restrictions on foreigners buying property in Ghana but the procedure isn’t the same as that of a Ghanaian citizen’s. There are four forms of land ownership, some of which cannot be privately owned. Each involves differing modes of acquisition. These are:

  • Government Land
  • Vested Land
  • Customary/Stool Land; and
  • Family/Private Land.

The majority of the land owned in the country is not owned by private organizations, most of the lands are stool lands or belong to the Government. Before purchasing a property, it’s advisable to double-check to see if you are purchasing the property from the right owner. Potential buyers should first consult the Ghana Investment Promotion Center regarding procedures, and to be directed to the appropriate agencies involved in legally acquiring property, since identifying legal ownership in Ghana can be a problem.

Alternatively, you can buy lands or property and also consult from verified real estate developers like Swam India, who have a reputation for building luxury apartments like Solaris in Osu, which is equipped with world-class amenities and offers a host of unique modern facilities. The development graces Accra’s skyline with the power of its innovative architectural design and unmatched quality. Real estate developers like Swami India have taken the pains to secure land from the government and appropriate owners in a bid to provide hassle-free property for its clients.

Types of Real Estate Investment in Ghana

Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are a great way for investors to earn a share of the income produced through commercial real estate ownership. With REITs, a corporation uses your money to purchase and operate income properties that are bought and sold on major stock exchanges. This is a way to earn regular income since the REITs will pay you dividends. REITs afford investors entry into non-residential investments such as malls, hotels, or office complex buildings that are generally not feasible for individual investors to purchase directly. However, be wary of any person who attempts to sell REITs that are not registered with the Security and Exchange Commission (SEC). You can verify the registration of both publicly traded and non-traded REITs by SEC to be sure of their authenticity.

Rental Income

Ghana has a looming deficit of about 1.7 million units. This means that there are very few housing available to meet the demands of its population, especially its growing middle class and influx of expatriates and tourists. If you are looking to invest in Ghana’s real estate, consider buying a property and then renting it out. The high demand means that you will never run out of people looking to rent a house and you may eventually recover your capital in the long run. For those who don’t have enough capital to buy property and rent it out, you can rent out some of your rooms in your existing property via a site like Airbnb. There are currently about 7 million Airbnb listings around the world and it offers a pretty steady source of income for its users. As Ghana is a tourist country and home to many African cultural events, you are sure to not run out of visitors. A lot of real estate investors in Ghana make money through rental income, appreciation, and profits generated by business activities that depend on the property. This gives them passive income and stable cash flow.

Property Development

In property development, individuals purchase land or 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.

Funding Your Real Estate Investment

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.


According to Kathyu Fettke, CEO and Co-Founder of Real Wealth Network and an active real estate investor, “investing in real estate is smart because property is tangible. People always have and always will need shelter. This means that it is very unlikely that our need for shelter will ever go away.”

It’s a known fact that real estate investment is one of the surest ways of growing personal wealth. With property, the key advantage (unlike other forms of investment like stocks and bonds) is the level of control the owner can exercise – which is full control. Thanks to how solid real estate is as an investment and business, it is no wonder it serves as valuable collateral.

Also, real estate is the only investment option whose value always increases as property valuations appreciate over time. It is also a great way of earning passive income.

For a foreigner who wishes to buy properties or invest in the real estate sector, it is important to register with the Ghana Investment Promotion Centre (GIPC). This will prove beneficial especially when leaving Ghana since some funds can be made readily available to you. This ensures your security in the business you’re doing in Ghana. However, when the property is being bought for personal use, there is no need to register with GIPC.

27 Sep 2020