Real Estate Investor Magazine South Africa July 2015 | Page 64

AFRICA

The Ghanaian Property

Market At A Glance
Which property sector is best
to invest in now?
BY MEGAN DIENER

Residential
New developments in the housing market are currently
being driven by new apartment block complexes.
Increased residential demand has been met with
high-end apartment developments funded by foreign
investment.
Over the past decade, Ghana’s residential sector
registered an estimated 85, 000 sale transactions per
annum. In Accra, demand trends included requests
for short-term stays in apartments, purchase of two
and three bedroom apartments in prime areas as well
as stand-alone homes in first and second class areas.
The majority of enquiries were mainly for short-term
stay in apartments. Generally, sales activity was lower
compared to leasing activity.
Kumasi has always been dominated by private sector
developments and remained so in 2014 with few
apartment developments such as Christiana Court, The
Ark, Georgia Apartments and Lady Victoria Gardens
underway. Demand and rentals remained stable. In
Takoradi, demand and supply remained static while
rentals increased by as much as 25% in 2014.

“Accra Mall is dominating the
retail landscape in Ghana.”
Retail Sector
Accra Mall is dominating the retail landscape in
Ghana. Although beginning to mature, formal retail is
still in its infancy stages, particularly outside of Accra.
The success of A and C Square in East Legon has
confirmed the need for neighbourhood retail centres
in Accra. On a regional level, Kumasi and Takoradi,
the next two most populous cities in Ghana, have no
formal retail centres; therefore, opportunities exist for
further regional developments.
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JULY 2015 SA Real Estate Investor

In Accra, effective demand was at par with supply in
2014 with asking rentals being slightly above market
rates. Demand is expected to remain stable, however,
this may vary between cities depending on the first
move advantage and the ability of the landlord to
provide sustainable rental levels. Rental levels are
expected to remain stable, however, they are likely to
be discounted for certain retail categories that are price
sensitive and more exposed to the downturn in the
economy. The outlook for 2015 remains cautious.
Office Space
Prime office space in Ghana may be of interest to
property investors. Office space rental values are up
to US$35 to US$40/m2 per month, with a prime
yield of around 10%. Office demand derives from
the services that support sectors such as the banking,
telecommunication, professional and diplomatic or
aid sectors. New office space in Accra is delivered to
a ‘shell and core’ finish, although tenants may now
demand fit-out as part of lease negotiation as more
office developments are released to the market and
competition for new tenants increases.

GHANA AT A GLANCE
Income level: Lower middle income
GDP: US$48.14 billion (2013)
GDP Growth: 7.1% (2014)
Population: 1.261 million (2014)
%