Residential real estate in Accra is an important sector of the city’s economy and a crucial component of the country’s overall housing market. The city is a hub of economic activity, cultural diversity and urbanisation.
The housing market trend in Accra is experiencing significant growth, fuelled by the increasing number of middle-class Ghanaians and increased foreign investment.
The cost of housing in Accra is relatively high compared to other African cities, which is attributed to factors, such as the city’s growing middle class and a stable political environment.
The average cost of a 2-bedroom apartment in a well-developed area in Accra sells for approximately US$150,000, which is significantly higher than the average income of many Ghanaians. As a result, access to affordable housing remains a major challenge for many residents of the city.
Residential properties in Accra include single-family homes, apartments and condominiums. The majority of the housing stock in the city is made up of single-family homes, which are often built by individual homeowners known as landlords.
Gated communities are also prevalent in Accra, providing residents with secure, modern housing. Gated communities in Accra are typically found in affluent areas, such as Airport Residential Area, Cantonments, East Legon and Labone.
The properties in these communities range from luxurious villas to townhouses and apartments. The price range for gated communities in Accra varies significantly depending on the location, type of property, and amenities.
For instance, a one-bedroom apartment in a gated community in Cantonments, which mostly comes fully furnished, could cost between US$800-US$2000 per month in rent, while a four-bedroom villa in the same area could cost upward of US$2500 per month. The purchase prices of properties in gated communities can range from US$100,000 to over US$1million depending on the size, location and level of luxury.
One of the challenges with the residential real estate in Accra is the lack of affordable housing, with many Ghanaians struggling to find decent accommodation. This has led to the development of informal settlements, such as Nima, Chorkor, Kasoa, and many others, which can intensify issues – such as poor sanitation and overcrowding. Most properties in such areas are relatively cheaper and their residents are low-income-earners who cannot afford to rent high-quality housing in other parts of the city. The lack of proper rental agreements in such areas makes tenants vulnerable to exploitation as landlord can charge exorbitant rent and neglect maintenance of the properties.
Residential real estate in Accra offers a range of investment opportunities for individuals and institutional investors. The city’s strong economic and political environment, alongside the growing middle class present a significant demand for housing, making real estate a lucrative investment option. One of the key elements driving real estate in Accra is the limited supply of properties in prime areas, specifically the luxury and high-end ones.
This has led to competition among investors, driving up the real estate prices and making it an attractive prospect for those seeking capital appreciation. The government has implemented various policies to attract foreign investment in the real estate sector, such as the Ghana Investment Promotion Centre Act, which provides incentives and tax breaks to foreign investors.
In conclusion, the residential real estate market in Accra – Ghana, is an important sector of the city’s economy, driven by population growth, urbanisation and increased foreign investment.
Housing market trends in Accra reveal an increasing demand for affordable housing, with the majority of the housing stock made up of single-family homes. Gated communities are also prevalent in the city, providing luxurious living experiences for residents. Finally, residential real estate in Accra offers various investment opportunities for individuals and institutional investors, with the government implementing policies to attract foreign investment in the sector.
About the author
Rita Boateng is a trusted real estate agent at Novella Homes Limited with years of experience in the industry. An expert in the Accra real estate market who has a deep understanding of the local trends and developments.
LinkedIn: Rita Boateng
Email: [email protected]
