Real estate is the 4th largest component of the services sector in Ghana, accounting for approximately 5% of total GDP. Due to the housing deficit of over 1.7 million units, residential property is the fastest growing section of the real estate market.
Apartments have increasingly become the preferred asset for several local and foreign consumers in Ghana’s residential property market. This is because apartments offer significant advantages:
Apartment building projects have benefited from the general housing deficit in Ghana’s real estate sector. The high demand for both prime and non-prime real estate has fueled a long cycle where property prices have appreciated by over 19% per annum over the last 5 years in several locations. This notwithstanding, there still remains a significant housing deficit of over 2 million units.
The real estate industry in Ghana has great prospects. This is due to rising income levels, Ghana’s growing and youthful population (46% of the population are under 25 years old) and liberal trade policies. Steady GDP growth (which has resulted in rising income levels) and the emergence of the oil and gas industry will increase the ranks of Ghanaians, leading to greater long term investments.
Although the real estate industry is heavily segmented, there will be growth across all segments over the next 10 years. This growth will be in the range of 10-15%, and will be as a result of increased income levels, growing investor/expatriate interest in Ghana’s economy, increased urbanization, and overall strong GDP growth of over 6% per annum.