By Isaac DWIMOH-OPOKU
The evolution of property ownership
From early times, property served mainly as shelter and a status symbol. Over time, with rising populations and limited land, property ownership evolved into a key investment tool for wealth accumulation.
Today, the most critical consideration in real estate investment is location. As Warren Buffett aptly puts it: “Price is what you pay; value is what you get.” People are becoming increasingly conscious of the ability of their properties to increase in value over time or generate attractive rental income (returns).
Understanding location beyond geography
At the core of this decision-making approach is the location concept of real estate. Location goes beyond simple geography — it includes proximity to amenities, road networks, schools, security, market demand, zoning regulations, and even socio-economic trends.
Choosing the right location for your real estate development or investment significantly reduces many of the sector’s inherent risks.
This principle connects closely to the concept of highest and best use in land valuation — defined as the most profitable and legally permissible use that is physically possible, appropriately supported, and financially feasible. This ensures that land use aligns with its location to deliver optimum return on investment.
The cost of mismatched development
As a real estate valuer and investment specialist, I drive along the streets of Accra daily and often bemoan how money is effectively thrown away by developing properties — especially office complexes — in locations where demand does not support such developments.
The result? Empty structures wasting away. Developers quote high rents based on property features that prospective occupants in those locations cannot afford. This leads to low or zero occupancy, defeating the purpose of the investment.
Residential mistakes: cheap land, costly regrets
On the residential side, a common mistake developers make is buying cheap land in a remote area of Accra and investing heavily in construction.
I often ask myself: Why buy land in an area where you can barely drive to at GH¢40,000, and build a property worth over GH¢1 million on it — when construction costs are largely the same across the city?
In a country where basic amenities are unevenly distributed, the smarter approach is to invest in a prime location — easily accessible, with reliable utilities.
A modest three-bedroom home on a quarter plot in a good location will often outperform a five-bedroom mansion on an acre in an inaccessible area with poor roads and amenities.
Investing in a good location comes with benefits. If the property is for personal occupation, you’ll enjoy peace of mind, convenient access to the Central Business District, and reliable services.
If it’s for rental purposes, you benefit from high occupancy rates and premium rents, while watching your property steadily appreciate in value.
The fallacy of ‘remote areas will develop’
Some argue that remote areas will develop eventually. While that may be true in some cases, not all remote locations will command high value in the future.
Let me share a story. A man once narrated how he and a friend bought land in a very popular area (name withheld) in the 1990s.
His friend later sold his share and used the proceeds to purchase a plot along the Ritz Junction to School Junction road at Ashaley Botwe — for the same price.
Today, the land at Ashaley Botwe is worth more than US$100,000 (about GH¢1,550,000), while the land at the original location can barely fetch GH¢200,000. The difference? Location.
Key indicators of a promising location
When assessing a property’s future potential, consider the following:
- Household income levels in the neighborhood
- Quality of layout and planning in the area
- Type of developments — including housing and infrastructure
- Access to major parts of the city
- Proximity to landmarks, businesses, and institutions
Analyzing these indicators can significantly influence your understanding of how property values will appreciate over time in any given locality.
Expert advice is invaluable
In all cases, expert advice is highly recommended before making a real estate investment. Real estate consultants possess the relevant knowledge and experience to interpret the many factors that affect property values.
Engaging one — armed with solid research and reliable data — empowers you to make the right investment decisions, especially when developing commercial properties for rent or sale.
Conclusion – Make smart property moves
Real estate investment is one of the most rewarding ventures you can undertake — but only when done right. Mistakes in location selection are expensive and often irreversible. Every decision must be backed by thorough analysis, reliable data, and professional insight. With the right approach, your property will not only meet your current needs but also steadily grow in value over time.
>>>The writer is a real estate valuation and investment specialist. He is the Managing Director of Orient Property Consulting, a firm that provides Valuation, Market Research, Investment Advisory, Property Management, and Brokerage Services. The company specializes in delivering data-driven insights and expert guidance for real estate transactions, helping investors, banks, property owners, and developers navigate market complexities. He can be reached via email: [email protected]
