Ghana’s property development sector has seen a steady upsurge over the past decade as a result of steady economic growth, rising population and rapid urbanization. Official estimates peg the country’s current housing shortfall/deficit at 2 million housing units.
The changing skyline in the nation’s capital which features an array of finely-architectured high-rise edifices as well as luxury apartments sprouting across town are all evidence of a burgeoning property development sector that beckons to both investors and expats.
Information by top property developers in Ghana reveal that some 850,000 building facilities are either rented or sold on an annual basis with an average return of 18 percent on the said property investments.
Activity in the property development sector which encompasses residential, commercial and industrial property developments is mainly supervised by the Ministry for Works and Housing. Other stakeholders such as the Bank of Ghana, oversees related financial issues such as mortgages whereas the Lands commission mediates on matters of land acquisition.
Meanwhile, The Ghana Real Estate Developers Association (GREDA) exists as the central organization for private sector real estate developers. It provides a united front for private developers who form an active part of the real estate market in Ghana.
The mortgage market however remains at a developing state. The Oxford Business Group report put the ratio of mortgage to GDP at 1.1 percent largely due to the inability of banks to allocate capital for long erm financing. Nonetheless, this provides opportunity for potential investors to take up the task. Of providing various financing models for prospective home owners.
Outlook for the Property development sector remains positive bolstered by the aforementioned huge housing deficit which translates into a ready market, a growing economy and a restructured regulatory system which will ease land acquisition and documentation for developers and investors.