1. Rental income
2. Home appreciation
3. Equity build-up
4. Value-add potential
5. Inflation edge
6. Demand for housing
7. 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.

Read also: Buying a House in Ghana|Here’s What you Need to Know

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%.

Read also:Why are rents so expensive in Ghana, Accra? -villasharks.com

 

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.

Home Appreciation:

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

Read also:A snapshot of Accra’s residential real estate market in 2022

Equity build-up:

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.

Read also: The Process of Buying and Registering a House in Ghana

 

Inflation hedge:

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.

 

Value-add potential:

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.

Read also:What is the best investment to make in Ghana?

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.

 

Tourism opportunity:

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.

Read also:11 BEST CITIES AND TOWNS TO LIVE IN GHANA – WEST AFRICA

 

Final Thought

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.

 

Now Selling Fast! Become A Homeowner In A Greenery & Solar  Gated Community Kwabenya, Accra Before It Is Sold Out!

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Are you a foreigner considering investing in Ghana’s real estate market? Or are you a Ghanaian or  African diaspora planning to buy your dream home in Accra, Ghana? We have got you covered and would love to connect and serve you. Buying your dream home in a new development project by a real estate developer gives you flexibility with regard to payment plans to choose from. You don’t have to go through all that stress to get building permits and regulations checked. We have done all the hard work.  Your only job is to own it by reserving your home now. Get in touch with us today, tomorrow might be too late.

La margo Villas, is upcoming greenery, lush landscape,  eco-friendly, and renewable energy gated community in the  beautiful, picturesque hillsview of Kwabenya, Accra featuring townhomes and apartments. Our residence will enjoy energy reduction on utility bills, worldclass amenities , and facilities such as clubhouse, multi-purpose tennis court within the community and most importantly,  flexible payment plans. Let’s help you own your dream home. Get in touch with us.

 

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.