What the Future Holds for Ghana's Real Estate Industry: Projections for the next 10 years
- Ghana has experienced rapid growth in the real estate sector due to its economic buoyancy and political stability
- It will be easier for many people to acquire homes due to a growing middle class and the availability of mortgage providers
- People will move out of city centres to emerging areas so that they can become early investors in that neighbourhood
- It will become easier for more people to search and pay for property online. This is a result of an increased number of online real estate portals
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Ghana’s real estate industry has undergone a significant amount of change over the last few decades. Ghana’s relatively stable economy in the West African sub-region, stable political climate and long-standing peace and security have made it a hot spot for foreign businesses and investors.
The increased urbanization and migration to top cities in Ghana such as Accra, Kumasi and Takoradi among others further deepen the country’s housing deficit which is already at a whopping 1.8 million units.
There are a number of real estate companies that have sprung up in a bid to curb the housing crises that loom in Ghana. The government’s attempt at curbing the housing deficit in Ghana by building affordable homes has not done much to curtail the problem.
An increased number of Homeowners
We are in a time where everyone wants to have their own space. In the next 10 - 50 years, there will be more people owning homes. This will be similar to the way more people own cars now compared to 20 years ago.
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The turn of the 21st century saw an increase in the nuclear family setting as opposed to living in family houses with other external relatives which were prevalent in the 20th century.
As Ghana’s working-class increases and more people gain economic stability, there will be a tendency for them to acquire their own homes. There are mortgage providers in Ghana who make it easy for people to purchase houses without paying all the cash upfront.
More people will move out of the Big Cities
Neighbourhoods such as East Legon, Cantonments, Airport Area, Spintex and Dzorwulu are considered “crème de la crème”, which means “best of the best”.
Many people want to settle down in these areas because of how posh-looking they are and their association with a certain social and economic class. Prices of property in such areas are usually above the standard market price in other locations.
In the next 10 years, other neighbourhoods will emerge that will take the place of these expensive neighbourhoods. Areas such as Tse Addo, East Legon Hills and Community 25 are upcoming neighbourhoods that have shown promising signs of becoming the best neighbourhoods of the future.
People are already scrambling to acquire properties in these areas before they become too pricey for their pockets. Real estate investors and companies are rushing in to buy lands to put up developments that will fetch them serious cash in the future.
The emergence of Online Real Estate Marketplaces
COVID-19 put a strain on the real estate industry in Ghana, especially in the rental sector. During the lockdown, people were not able to go for property viewing with real estate agents. Many hotels and guest houses also had to close down temporarily because of a reduced number of guests.
The emergence of online real estate portals such as Meqasa, Edanra and Plotam make it possible for people to sit in the comfort of their homes and view a lot of properties displayed on an online portal.
In the next 10 years, it will be possible for people to be at home and complete a full real estate transaction online without having to go to the property with a real estate agent. Airbnb has shown that this is possible, and in the next few years, this will become the norm rather than an exception.
In a similar story, Yen.com.gh further expounded on the top 3 emerging areas in Accra you should consider before building. These areas have shown signs of promise with their vibrant community life, the existence of social amenities and the development of residential gated communities.
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