Property Prices In Ghana And Why They Differ Depending On the Location
- Ghana is one of the most expensive places to live in Africa, and the real estate industry is very unfriendly to the average cedi earner
- Prices of houses, whether for sale or rent, differ from one location to the other based on factors like security and proximity to the city centre
- Most Ghanaians are now considering properties for sale or rent in emerging areas since they are cheaper than those close to the city centre
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Prices of properties in Ghana are ridiculous since they are quoted in US dollars to cedi earners, making it almost impossible for the average Ghanaian to buy a house. In addition, rent prices are taken for an advance period of one or two years, which can make it difficult for people to come up with a lump sum.
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That notwithstanding, some factors influence the prices of properties in various locations, making some more affordable than others, and giving people multiple options depending on their financial ability.
Factors That Influence The Price Of Property
Security
A significant factor that influences a house's price is the level of security it provides. This is because most people are concerned about protecting the lives of their loved ones and their property. People wonder whether the house has CCTV cameras, is in a secure gated community or has high walls with electric fencing.
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A neighbourhood like Cantonments in Accra is one of Ghana's most secure areas and boasts the most expensive houses. On a real estate online portal, meqasa.com, a typical four-bedroom house in Cantonments sells at GH₵ 4,950,000, while a similar property in Tantra Hills sells for GH₵ 2,800,000. The house in Tantra Hills is cheaper because it does not provide the level of security that Cantonments does.
Speaking exclusively to YEN.com.gh, Deborah Ayiku, who is a Client Relations Specialist at meqasa.com, said:
Prices of houses in Cantonments are, on average higher than those in other areas because of the security it provides. It accommodates the majority of embassies, like the US Embassy and the Italian Embassy, which need a lot of protection and surveillance.
Social Class
A neighbourhood like East Legon is known to accommodate a particular social class. It is home to several footballers, musicians and politicians. As such, the prices of houses in the neighbourhood are bloated to reflect the status of the celebrities that live there.
In addition, East Legon is an autonomous neighbourhood with its malls, social amenities, businesses, and others. According to Ghana Property Centre, the average price of a three-bedroom house in East Legon sells for about GH₵1,800,000, while a similar three-bedroom property in a place like Adenta goes for GH₵920,000.
Speaking exclusively to YEN.com.gh, Felinda Twumasi, a real estate broker with Edanra, said:
East Legon is the perfect "getaway" neighbourhood for celebs because they don't have to move too far away from where they live. Anything they need is within a few metres from their residence, and they get to engage with others in their social bracket. This relieves them of dealing with the prying eyes of the public.
Proximity To City Centre
Another factor influencing the price of properties is its proximity to the city centre. In Accra, areas around Airport City and Dzorwulu are hot spots, especially for foreigners who don't want to stay too far away from the Airport. As such, the prices of properties in such areas are bloated because those who stay there have the dollars to pay for them.
On meqasa.com, a three-bedroom house for sale at Airport Residential Area costs GH₵ 3,630,000, which is five times more than a similar three-bedroom house in a place like Adenta going for GH₵ 700,000 because it is further away from Accra's city centre.
Speaking exclusively to YEN.com.gh, Benaiah Cathline-Abraham, a real estate broker at C-Quiver Properties, said:
It is perfectly normal for expatriates and tourists to want to live around East Legon, Spintex or Dzorwulu because it is closer to the airport and would not have to deal with too many incidents such as traffic jams and others when they have to fly out. Also, areas around the airport tend to be more developed than others and offer the kind of amenities that foreigners are used to.
Factors Such as Location and Others That Influence The Cost of a Plot of Land in Ghana
In an earlier story, YEN.com.gh wrote about the factors influencing land prices in Ghana. In Ghana, purchasing land is influenced by several variables, including the seller and the property's location. The type of land one may buy in Ghana depends on its use. Therefore, there is no one-size-fits-all approach. In Ghana, purchasing land is often quite expensive, and verifying the legitimacy of the purchase may be a tiresome and protracted procedure.
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Source: YEN.com.gh
