Ghanaian Property: Make a Fortune in Ghana? You might be surprised to find that the answer is yes! The real estate market in Ghana has grown substantially over the past 10 years. If you are looking for an investment opportunity, Ghanaian property could be your best bet. Learn more about buying Ghanaian property and why it's worth your time.
The term 'Ghanaian property' is not a new term. There are already numerous real estate platforms in the country – these include online property portals and local real estate agencies. In Ghana, property is typically referred to as a parcel of land. If you are looking to buy property in the country, you will be interested in property that is still being used for commercial and agricultural purposes.
Buying Property in Ghana
Buying a parcel of land in Ghana is not a simple process. While there are a number of platforms in the country that offer land for sale, it is essential that you contact your preferred land agents in person. This is because you will need to secure the necessary paperwork before you can purchase a property in Ghana.
Buying a home in Ghana could be risky, as it is illegal for expats to buy land or develop property. To buy land, you must work in a local company or be the spouse of a local company or go into partnership with a local firm.
If you are African and an American you can be deported if found in Ghana without a working visa. In order to purchase property, you must have a foreign business passport. You may be allowed to buy a property in Ghana if you have a 10 year lease, or a one year lease if it is less than 3 years old.
In some areas, property prices are extremely cheap. However, if you purchase a property in a major city you can expect to pay up to 25% of the market value for a small bungalow and over 80% of the market value for a large mansion.
Real estate in Ghana has been experiencing phenomenal growth over the past 10 years. As a matter of fact, the current Ghanaian property market is one of the hottest and fastest growing in Africa. In 2017, the prime investment property in Ghana reached $700 million – almost a 10 percent increase from 2016. The property market is still booming.
This begs the question – is buying a property in Ghana a smart investment?
Some experts believe so. In fact, a recent report by the EIBOR Foundation – a property financing organization – shows that the prime investment property in Ghana now accounts for 20 percent of total real estate investments in Ghana.
Take for example, the Accra Mall – the largest shopping mall in the country, as well as the top-ranked mall in West Africa.
By the time you are reading this article, you may have at least heard of Ghana, but you still may not be too sure why you want to buy property there. After reading this article, you will have a better understanding of why you should buy property in Ghana.
In recent years, Ghana has been attracting many foreigners from all over the world. Some of them are looking for a good investment opportunity and the second most common reason for investing is that it's the least expensive place in Africa to buy a house.
Over the past decade, the property market in Ghana has seen an increase in property value by around 100%. When the Ghanaian property market is added to the United Kingdom property market, the total real estate value amounts to USD 105.17 billion.
Before you decide to buy property in Ghana, you will want to plan well. The process could be long and tedious depending on the market. Just make sure to select a reputable realtor to help guide you through the process and make sure to read everything you need to before you make the purchase.
Where to buy property in Ghana
There are many areas to choose from when buying property in Ghana. The biggest markets are Accra, Takoradi, Cape Coast, Tema and Kumasi. Depending on the market, it could be cheaper to buy property in Accra than in any other part of Ghana. In fact, Accra is ranked as the wealthiest city in Africa with over $3.4 billion annual personal income.
To buy a property in Ghana, you will need to make sure that it is safe and has some sort of security system. Due to the current political turmoil in Ghana, there are many vacant properties and investment opportunities. If you want to be safe, make sure you find the perfect property with local security.
Shop for the lowest cost in Ghana
Most real estate in Ghana is extremely cheap and can be bought for under $20,000. This is due to the incredibly low property taxes in Ghana and the massive incentive program that the government offers in order to encourage foreign investors. If you want to buy property for the cheapest price, you can try to look for homes for sale by private owners in Ghana. In this case, you will most likely be buying a small home for as little as $3,000 to $4,000.
One of the major differences between buying a Ghanaian property and property in other countries is the sheer variety and availability of properties in the country.
Some Ghanaian properties in the cities and nearby towns are very appealing. The downside? They are often more expensive than what you would find in similar, modern properties in Europe or North America. This means that while you may see an attractive property in your price range in Ghana, you will probably still have to pay a hefty sum for a house that looks and feels cheaply made.
The other thing to keep in mind about buying property in Ghana is that many people look for an investment opportunity. As such, buyers are usually looking for a rental property, or to rent out their properties.
In spite of the large number of investors and property developers in the country, buying property in Ghana remains an expensive affair. Thus, there are certain things you need to bear in mind when investing in this sector.
1. Location
Before buying a property, you need to identify your specific requirements. You should choose a property that is close to your home or workplace and if you are looking for additional benefits, you could consider properties that are close to a local tourist area. Alternatively, you can buy a property that is located in the city center or in the suburbs. You should also consider areas within a range of miles from the airport. You can also consider having your property located near major hospitals and universities.
2.
For many Ghanaian property owners, the question of how much to invest in property is often a matter of concern. What do you get for your investment?
The answer is simple: A share of a building and a lucrative tenant. A property investor can get returns ranging from 10% to 20% of a property's value, depending on the property. For example, for every NGN100,000 of invested capital, the investor can get an annual return of around 10%.
Remember, however, that when investing in Ghanaian property, you are looking for a healthy rental yield, not necessarily a high capital gain. The property's rental yield is usually between 5-8% and the capital gain is usually around 2-5% per year.
With a wide range of property options, it can be hard to narrow down the best ones for you. If you can afford to buy real estate in Ghana, take the plunge and make a lucrative investment. If you have a limited budget, check out available housing options in the country. No matter what you choose, you can find a place to call home in Ghana!
Article by Richard May
Want to learn more about buying real estate in Ghana? Contact the Country Manager to find out more!
Visit the Country Manager's profile page for more information.
Paragon Real Estate Ghana
Paragon Real Estate Ghana is a leading real estate and asset management company in Ghana. Our mission is to create and increase value for our partners and clients by providing them with the best service in the industry.
