HOUSING TRENDS IN GHANA

The real estate industry in Ghana has been steadily growing over the years irrespective of the occasional negative developments it goes through.  While the pandemic caused retrogression in several sectors of the economy, the housing market saw off 2021 heads up. The residential space market was in high supply, countering the demand factors surrounding the real estate market in the country.

The housing market in Ghana is being catalyzed by indigenes, expatriates and Ghanaians in the diaspora, bypassing the aggressive lending rate cuts. The housing trend in Ghana can be seen as a buyers’ market because supply seems to be greater than home seekers who have an interest in buying. This situation gives home buyers leverage over sellers because when supply is higher and demand is lower, the market is forced to respond in order to form equilibrium.

The housing market in Ghana can be said to entail the following trends;

• VERTICAL EXPANSION OF RESIDENCY IN PRIME LOCATIONS.

Sales has improved in cities all around the world, with volume setting new highs and prices constantly rising. Branded apartments also continue to be popular, as they offer in-house spas and experiences, as well as five-star treatment and the security of a full-time crew monitoring the property while the owners are abroad. Furthermore, purchasers are drawn to big-name architects because they are famous for both the quality of their work and their excellent investment potential.

Many purchasers are also interested in luxurious buildings with smaller units that have a more communal atmosphere. In prime locations like Osu, Labone, Cantoments, Ridge, Airport Residential and East Legon, it is observed that a lot of high-end and rise buildings keep coming up to fit in the lands available since most of these cities are already occupied with buildings.

Most expatriates and Ghanaians in the diaspora tend to patronize these types of apartments because of its luxurious nature and the world class amenities they provide and the proximity they have to services in the city.  It is also seen that invested minded home seekers have the tendency of purchasing luxurious units like SOLARIS APARTMENTS by Swami India Ghana Ltd; because of the connection they have to all prime locations in Accra and the realistic return on investment it can generate, giving clients value for their money.

• INCREASE IN THE QUEST FOR TOWN HOUSES (GATED COMMUNITIES)

  The search for larger homes with specific outdoor space, clubhouses, parks and play grounds and maximum security is rampant among home seekers in the Ghanaian housing market.  Gated community or Town House settlement can be seen coming up a lot in communities such as Spintex, Adjringanor, Tema, Adenta, Oyarifa and East legon hills where Swami India Ghana Ltd has PARADISE ESTATES; a gated community of one hundred and sixteen (116) three (3) and four (4) bedroom detached homes.

In the year 2022, real estate developers are making large investments in the suburbs. Because of the creation of special economic zones nearby, as well as the existence of reputable educational institutions and other vital necessities, such micro-markets have experienced a steady influx of migrants from outside the city. These suburbs provide decent access to the rest of the city and, as a result of increased commuter connections, have become a popular choice for house owners. Micro-markets have become a sought-after real estate area due to the availability of homes at lower prices than metros while yet being close to all major amenities.

A lot of indigenes and Ghanaian in the diaspora are purchasing a lot of these townhouses both for residential use and investment purposes.  For instance, the type D 3 bedroom in Paradise Estates is seen to have a lot of guests from AirBnB with home owners having not less than 800 dollars as rent every month. Return on investment on these townhouses just like the apartments are high thus, giving investors good value for money.

• PLOTTED DEVELOPMENTS/ SELF COMPOUND

According to the Africa Report, 2022 by Knight Frank, just as many other markets globally, key drivers of demand in Ghana’s industrial sector are the logistics and data-center sub-sectors. Investors are actively securing land plots and built assets to cater to the burgeoning level of requirements from these sectors. The increased demand for space from these two sectors has however been unable to offset the wider decline in space requirements as a result of the economic weakness and rents are currently some 44% below 2020 levels.

In areas such as Tema, Dawhenya, Prampram, Dodowa and Aburi; a lot of plotted lands is seen to be coming up by most Real Estate Companies. Most of the indigenes who are interested in their own huge self-compounds are seen to patronize these units a whole lot. These plots come in already services and takes away the stress of being frauded or dupe by people who often sell already sold lands. These plotted lands also come with access to water and electricity making settlements in these localities very comfortable.

The Ghanaian housing market can be seen as a dynamic one, thus, one that evolves with time and development. Investors find this unique nature welcoming and tend to invest more in the Ghanaian housing market because of the profit it recuperates with time. Swami India Ghana Ltd (SIGL) are coming up with more projects which can cater all the segments which are in demands and needs. Thereby creating opportunities for the location development and boost for the real estate sector.