As global markets continue to evolve and find ways of recovering from the general economic downturn, people are increasingly looking toward countries like Ghana for promising real estate investment opportunities.
That’s according to Kojo Addo-Kufuor, Executive Head of Home Loans Business at First National Bank Ghana. He adds that in the last five years there has been a significant growth in the real estate and housing industry, increasing its potential to help boost economic growth.
Mr. Addo-Kufuor was speaking in the Home Chat virtual event hosted by First National Bank on the bank’s Facebook page, with Anne Murungi of Indigo Homes. Both speakers affirmed that navigating the unique dynamics of real estate investment require a careful approach. They pointed out that individuals or groups who want to venture into real estate ought to keep some basic considerations in mind before making a move.
Mr. Addo-Kufuor highlighted that for starters, currency stability and general economic conditions can greatly impact property values and the ease of doing business. “In-depth research into the processes, documentation and macroeconomic indicators are essential”, he said.
He also mentioned that understanding the legal and regulatory landscape is vital. Investors should be well-versed in property rights, ownership restrictions, land tenure systems, and the processes for obtaining permits and approvals.
Engaging with professionals familiar with local regulations can help navigate potential hurdles, he added. “Thorough due diligence is non-negotiable. Investigate property titles, conduct property inspections, assess the potential for future development, and understand the competitive landscape,” Mr. Addo-Kufuor said. “At First National Bank, ensuring that our customers have all the comfort before committing to a property is key.”
Anne Murungi from Indigo Homes stressed that Ghana is undergoing rapid growth in terms of housing, with massive infrastructure development. Investments in areas with well-planned infrastructure projects, such as transportation, utilities, and telecommunications, can lead to increased property values and rental demand.
“If you are not sure where to pick it from at this point, you will need to investigate the demand for various property types, such as residential, commercial, and industrial, and consider factors like population growth, urbanization rates, and shifts in consumer preferences,” Madam Murungi said.
On ways to eventually earn some income on real estate investments, both speakers endorsed the need to assess how currency exchange rates can significantly impact the value of investments and returns. Investors should be prepared to manage currency risks by speaking to professionals who can give sound recommendations for strategies to adopt, they said.
“You should come to us at First National Bank,” Mr. Addo-Kufuor said. “We will help you diversify your investment portfolio, even outside of real estates, so that you are guaranteed some great returns.”
Both speakers agreed that investing in real estate in Ghana offers enticing opportunities for growth, but it’s a venture that requires careful planning, research, and a strategic approach. By considering the economic, regulatory, cultural, and market-specific factors, investors can position themselves to make informed decisions that can yield substantial rewards in the long run. As with any investment, a well-informed and patient approach is key to success in the dynamic world of real estate.
