Real estate investment in Accra, Ghana, is rapidly growing, driven by a number of factors including the city’s booming economy and increasing population, an active rental market, opportunity for capital appreciation among others. With a high demand for housing and favorable government policies, investing in Accra’s real estate market is an excellent way to build long-term financial growth and secure a steady stream of income.
One of the primary benefits of investing in real estate in Accra is the high rental yield. The city is home to many multinational companies so owning a property in an upscale neighborhood located close to the airport and business centers makes it popular among expatriates, business travelers, the locals and tourists.
According to the Ghana Real Estate Developers Association (GREDA), investors in the city can enjoy rental yields of up to 10% per annum. This high rental yield is particularly attractive to investors seeking steady cash flow and can provide an excellent return on investment. In addition to high rental yields, the Ghanaian government has implemented tax incentives for real estate investors, making real estate investment even more attractive.
Another benefit of investing in real estate in Accra is the opportunity for capital appreciation. The Accra real estate market is developing at the fast pace, giving it a prospective future and making it an attractive field for investors. Various factors such as government policies, supply and demand, economic growth and location can contribute to capital appreciation. As the city’s economy and population continue to grow, real estate values are likely to appreciate, providing investors with long-term financial growth. This appreciation can be seen mostly in Accra’s rapidly developing neighborhoods, such as Airport Residential Area, Cantonments, East Legon, Labone, East Legon Hills and others where real estate prices have increased significantly in recent years.
Accra’s stable political environment also makes it an attractive destination for real estate investment. Ghana has a democratic government that has a track record of promoting business-friendly policies, ensuring that investments are secure. Accra’s stable political environment has contributed significantly to capital appreciation in real estate by increasing investor trust in the sector, improving infrastructure, reducing the risk of government policy changes that can negatively impact real estate and promoting economic growth.
The low prices of properties in Accra also present a unique opportunity for real estate investors seeking to enter the market to generate rental income. Lower property prices in Accra makes real estate investments more attractive for investors particularly those those who are just starting in the market since prices in the long term is driven up. Lower property prices also translate to higher rental yields, presenting an attractive investment opportunity for investors seeking to generate regular passive income.
Additionally, the city of Accra and Ghana at large is known for its rich cultural heritage, variety of tourist attractions which drive various nationals to the country, natural resources, bustling economy, and an increase in the middle-class Ghanaians which is driving the request for high quality housing, such as luxury apartments and stand-alone houses, making it a desirable location for real estate investment.
In conclusion, investing in real estate in Accra, Ghana, offers several benefits for investors seeking long-term financial growth and steady cash flow.
The high rental yields, favorable government policies, diversification, protection against market volatility and inflation, and a stable political environment make it an attractive destination for real estate investment. Additionally, the opportunity for capital appreciation and the ability to leverage assets for future investment opportunities make it an excellent choice for investors looking to build wealth. However, as with any investment, it is crucial to conduct thorough research and due diligence to identify the potential in the field for long-term value appreciation and returns.
Working with knowledgeable professionals such as realtors and developers can help guide you through the process and ensure that you make informed investment decisions.
About the author
Rita is a trusted real eatate agent at Novella Homes Limited with years of experience in the industry. An expert in the Accra real estate market and has a deep understanding of the local trends and developments.
LinkedIn: Rita Boateng
Email: [email protected]