- Rental income
- Home appreciation
- Equity build-up
- Value-add potential
- Inflation edge
- Demand for housing
- Tourism opportunity
Don’t second guess, real estate is the most tangle asset, better yet, the most secured investment you will ever make. If you are thinking whether it is worth it to buy a rental property in Ghana, my answer is go for it. If you want to buy a property to rent out for cash-flow, there are many things you need to factor in. The location, the property type, size, infrastructure development nearby and amenities is something you don’t want to miss out in your checklist.
Airbnb has proven to be the effective and profitable way to generate more income from your property than conventional rentals. You can rent out your property for nightly or weekly rates. The best part is that you could earn if not a double of what you will earn if you were to rent it the conventional way.
What is Rental market in Ghana?
Rental income yields here in Accra is anywhere from 10% to 13.5 percent a year depending on the location and type of property. I will confidently say these are the highest numbers you will actually find in Africa. Residential sector is one of the fastest in the country according to Ghana Investment and Promotion Centre (GIPC). However, rental yields for commercial properties is even higher, with some properties locations yielding up to 11-14%.
Now let’s discuss further why you should buy a rental property in Accra, Ghana. You can never go wrong with rental property especially in fast growing capital Accra, Ghana.
According to globalpropertyguide.com, property prices in Ghana have been steadily increasing in recent years. Property prices in Accra increased by an average of 7.4% per year. However, there can be significant variation depending on location and property type. For example, prime residential properties in Accra have seen even higher price growth, averaging around 12.3% per year. If at any point you decide
In Ghana, it is all about hard cash- show me the money. Unlike in the west were property investors use massive leverage, in Ghana, the real estate market is different ballgame. Home buyers buy with cash. According to globalpropertyguide.com, Ghana has a relatively low mortgage market, with only around 2% of the population having mortgages. However, for those who are able to obtain mortgages, investing in rental properties can provide opportunities to build equity over time as the mortgage is paid off.
With recent economic downturn the country is facing and the inflation rate hitting a record high up to 54.1% in December 2022 real estate continue to thrive. Although the inflation rate has been reduced to 45% in in March 2033, prices of food, transport and other basic necessities is still out of control and making the cost of living so high for ordinary Ghanaian. This means that rental income can increase over time due to inflation, providing a hedge against rising prices. No matter how high the inflations goes, people will still need places to live.
What separate smart real estate investors from amateurs is the ability to spot and opportunity with value-add components. You will be able to increase the value of your rental properties by renovating or upgrading them, particularly in areas with high demand for rental properties such Cantonments, airport residential, East Legon, Labone, Ridge among others. And their flip it for a hefty property or hold for long haul for cash-flow and capital gains. According to globalpropertyguide.com, property prices in Ghana can vary widely depending on the condition and location of the property. This investment strategy has become very common Accra.
Demand for housing:
According to the United Nations, Ghana’s population is projected to continue growing, reaching 39.2 million by 2030. This is expected to drive increasing demand for housing, particularly in urban areas such as Accra and Kumasi. Additionally, according to Ghana Investment and Promotion Centre(GIPC), Ghana has a significant housing deficit, with an estimated 1.8 million housing units needed to meet demand. The growing population coupled with increase in foreigners inflow into the capital made the demand for homes and rentals properties to skyrocket.
Most property developers are tapping to developing resort and recreational centers to carter for tourist. According to the Ghana Tourism Authority, tourism is a significant contributor to Ghana’s economy, accounting for around 5.5% of GDP. As a popular tourist destination, particularly for cultural and heritage tourism, investors may be able to generate additional rental income by offering short-term rentals to visitors. Additionally, according to the government is actively promoting tourism development in Ghana, with a range of incentives and initiatives to attract investment in the sector.
What is Ghana known for in Tourism?
Accra is a destination for tourist looking to enjoy all year round climate. According to the Ministry of Tourism and Culture, most tourist vist the country to explore Ghana and African culture, evergreen forests, mountains, lakes and waterfalls, the colonial sites such as castles and wildlife. Kakum National Park top the list as the most tourist attraction destination followed by Cape Coast Castle, Kwame Nkrumah memorial and Elimina Castle.
There are many ways you could make money if you know what you are doing. The potentials are endless. Find the right deal, come up with your business plan- how you going to execute the plan and multiple exit strategies.
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Are you looking to buy your dream home or an investment property for cashflow purposes in Ghana? Are you a westerner planning to make Ghana your next home and looking for African homes for sale? Perhaps you may be worried of the hassle to go through to build yours, we have got you covered. Buying a home from a developer is more secured because we have done all the hard work and due diligence on the land and it has pass the process. Your only job is to own it by reserving your home today.
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La Margo Villas Neighbourhood Snapshot
Kwabenya is a residential community located in the Ga East Municipal District of the Greater Accra Region. The area is well connected to major roads and highways, making it easily accessible from other parts of the city. It is an ideal area for real estate investment and an emerging sub-market for those who want to escape excessive noise of Accra. Get in touch with us to reserve your dream home today right here. Read also: The 9 Advantages Of Living In A Gated Community In Accra
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