RED FLAGS IN GHANA’S PROPERTY MARKET [PART 6]: THE RESALE ILLUSION - WHEN YOU CAN’T EXIT THE INVESTMENT YOU THOUGHT WAS PROFITABLE - AFRICA CONTINENTAL ENGINEERING & CONSTRUCTION NETWORK

RED FLAGS IN GHANA’S PROPERTY MARKET [PART 6]: THE RESALE ILLUSION – WHEN YOU CAN’T EXIT THE INVESTMENT YOU THOUGHT WAS PROFITABLE

In Ghana’s property market, the dominant narrative has long been familiar and reassuring: “Buy land or property, hold it, and expect profit at exit.” However, this narrative is increasingly out of step with market reality. For serious real estate investors, value is not truly proven at the point of acquisition, it is tested at the point of exit.

What is becoming clearer is that many real estate assets that appear attractive on paper can become structurally illiquid in practice. In such cases, the challenge is no longer ownership, but conversion, that is, turning the asset into real, accessible liquidity without significant delay or value erosion. 

This shift exposes a hard truth that, profitability in real estate is not anchored in the speculative appreciation narratives often advanced by opportunistic market players, but in the asset’s ability to achieve a timely and profitable exit.

This growing disconnect between perceived value and actual marketability exposes fundamental weaknesses in how property performance is assessed in Ghana. This phenomenon is what I described as the “resale illusion” where paper gains or speculative narratives create the impression of wealth, but real market exit remains uncertain due to structural constraints.

While liquidity challenges exist in many markets globally, Ghana’s case is particularly pronounced. This is the reason why investors must therefore be well informed and strategically positioned before entry.

In this article, I examine the resale illusion in Ghana’s property market, the situation where you cannot exit the investment you once thought was profitable. Drawing on empirical research and over a decade of market experience, I unpack how structural inefficiencies such as weak mortgage systems, affordability constraints, speculative pricing and demand-location mismatches combine to make property exit more difficult than investors anticipate.

Using Accra’s post-oil boom experience as a case study, the article shows how assets that appear profitable on paper often struggle to attract buyers in reality. Ultimately, I propose a demand-driven investment lens, where profitability is defined not by acquisition price or prestige, but by the ability to achieve a timely and realistic exit.

But before we go into the nitty-gritty of today’s discussion, let me remind you that, the Africa Continental Engineering & Construction Network Ltd stands out as one of Ghana’s leading real estate developers and consultants. From land acquisition, title registration, architectural design, general construction, property development, real estate investment advisory services et cetera, we provide a 360ºC service experience. 

If you are ready to move from interest to investment, kindly visit our property page, explore available properties and reach out to our team for a swift professional service delivery. With thousands of serviced litigation-free parcels of land across Accra and key growth corridors, we are uniquely positioned to help you unlock value in residential, commercial and industrial real estate. Now, let us go into the substantive discussion starting the illiquidity problem.

The Illiquidity Problem

Real estate is inherently an illiquid asset. In Ghana, however, this illiquidity is significantly intensified by structural constraints as mentioned earlier. Unlike developed markets with functional mortgage systems and secondary financing structures, Ghana’s property market operates largely on cash-based or incremental payment models.

This illiquidity produces three key outcomes; first, there is a limited buyer pool, as only a small segment of the population can afford outright purchases.

Second, transaction cycles are slow, with properties often remaining on the market for extended periods without serious offers, while sellers hold firm to perceived value rather than actual demand.

Third, it becomes difficult to determine fair market prices, since limited transaction activity makes it harder to establish what properties are truly worth, further slowing down market movement.

Mismatch between Property Location and Real Market Demand

One of the most overlooked drivers of the resale illusion is the disconnect between where properties are developed and where sustainable demand actually exist.

In many cases, investment decisions are driven by appreciation expectations rather than real demand fundamentals. However, real estate liquidity is ultimately determined by income levels, employment concentration and population growth patterns.

In Accra, much of recent development has concentrated in high-end enclaves such as Airport Residential, Cantonments, Ridge and East Legon. A 2025 study shows that demand in these areas surged during Ghana’s post-2007 oil boom due to expatriate and corporate presence, peaking between 2010 and 2014.

However, when oil prices declined between 2014 and 2016 and expatriate demand reduced, market activity in the premium segment slowed significantly, leading to longer holding periods and reduced transaction velocity.

The lesson is clear, luxury properties in those prime locations may appear valuable during economic expansion, but if demand is narrow or externally driven, resale becomes uncertain when conditions change. This is the core of the resale illusion, where perceived value does not translate into actual market exit outcomes.

Why Properties Remain Unsold

The persistence of unsold properties in Ghana is not accidental but structural and has to be addressed consciously if only we are serious about reforming the market. But put it concisely, below are the reasons why many luxury and mid-end properties remain unsold on the market for a long time.

Affordability gap: Property prices, especially in urban areas, are often aligned with diaspora or dollar-based purchasing power rather than local incomes. This creates a market where demand exists in theory but not in practice.

Speculative pricing: Many properties are priced based on construction cost recovery or expected appreciation rather than actual transactions. This leads to listings that exceed what the market can realistically absorb.

Supply-demand imbalance: Ghana faces a housing deficit, but the shortage is not uniform. There is undersupply in affordable housing and oversupply in mid-to-high-end developments, creating vacant properties alongside unmet housing need.

Weak market transparency: Limited access to reliable transaction data makes pricing uncertain. Buyers struggle to assess value, while sellers rely on assumptions rather than evidence.

Financing constraints: Without accessible long-term mortgage financing, many buyers delay or abandon purchases, reducing transaction velocity and deepening illiquidity.

Lessons from Accra’s High-End Market

Accra’s post-oil boom property cycle provides a clear illustration of the resale illusion. During the boom period following Ghana’s 2007 oil discovery and the subsequent inflow of multinational oil-related activity, developers significantly expanded supply in high-end residential and commercial enclaves, particularly in Airport Residential Area, Cantonments, Ridge, East Legon, Roman Ridge and Labone. 

These areas became the focal points of luxury real estate development, driven by expectations of sustained expatriate demand, corporate leasing, and rising oil-sector-linked incomes.

Empirical evidence shows that between 2010 and 2014, Ghana’s urban property market, especially in Accra’s high-end segments experienced increased demand and price escalation, largely supported by expatriate professionals, multinational firms and oil-related economic activity (Ametepey et al., 2025). 

Developers responded by rapidly expanding supply in these corridors often pricing properties based on anticipated future demand rather than existing domestic absorption capacity.

However, when global oil prices declined between 2014 and 2016, Ghana experienced a contraction in oil-related activity and a reduction in expatriate presence linked to the sector. This led to a slowdown in demand for high-end housing in these same locations, with longer vacancy periods and reduced transaction activity as the primary market segment weakened (Ametepey et al., 2025).

Beyond the empirical evidence, my own practical experience within the market further reinforces this reality. Over the past few years, several property owners approached me with luxury residential assets located in Airport Residential Area, East Legon, Ridge, Roman Ridge, Cantonments and Labone for sale and rental placement. 

According to these owners, the properties had become increasingly difficult to occupy, making it challenging for them to recover their investments through rental income as originally anticipated.

In many cases, after prolonged vacancy periods and mounting holding costs, the owners eventually decided to exit the market entirely by selling the properties. However, even the process of disposal proved equally difficult. 

Some disclosed that the properties had already been handed over to multiple agents and brokers for several years without securing either credible tenants or serious buyers.

Many of these owners were subsequently referred to me on the assumption that my professional network, investor base and transaction experience would improve the chances of securing buyers or tenants for these assets. Yet, despite extensive marketing efforts and active engagement over the past eighteen months, several of these properties still remain unsold and unoccupied.

This practical market experience strongly validates the central argument of this article: perceived property value does not automatically translate into market liquidity. In reality, many high-end properties in Accra continue to carry impressive paper valuations while simultaneously struggling to attract actual buyers or tenants within a reasonable timeframe. 

This is the resale illusion in practice, where ownership exists, valuation exists, but exit remains uncertain. As a result, many investors who had anticipated quick resale gains in these prime locations found themselves holding properties for significantly longer periods, often without corresponding buyer demand. 

This experience highlights a critical reality, listing price is not market value and construction cost is not recoverable value. Value is only confirmed at the point of transaction. Until a willing buyer meets a willing seller at an agreed price, profit remains theoretical rather than realized, buyers beware!.

Implications for Investors

The resale illusion carries important lessons for investors in Ghana. Exit strategy matters as much as entry strategy. Liquidity should be a core investment filter. Demand analysis must replace location prestige whilst affordability defines market depth more than aesthetics or prestige.

To navigate this environment, investors must shift from a price-driven mindset to a demand-driven strategy. In Accra, this requires focusing on emerging growth corridors shaped by infrastructure expansion and urban sprawl. 

These include Adenta–Oyarifa–Aburi axis, Pokuase–Amasaman–Nsawam corridor, Tema Community 25–Aflao highway stretch, Tema–Akosombo corridor, Adenta-Dodowa corridor, East Legon Hills enclave, Appolnia City enclave, Accra-Kasoa-Winneba stretch just to mention a few.

These corridors reflect real population movement, improved connectivity and rising residential demand. Affordable housing within these zones remains the most liquid segment as it aligns with the income profile of the expanding urban population.

A Guide to Starting the Process

Having established these realities, the critical question becomes: how does a new entrant or even an experienced investor effectively access the right market intelligence and professional guidance needed to navigate such a complex environment. 

The answer begins with a disciplined and structured approach to property acquisition, anchored in the engagement of a reputable and competent real estate consultant. A credible consultant plays a central role in aggregating relevant data, verifying critical information and translating fragmented market signals into coherent insights that support sound investment decision-making.

This coordinated approach significantly reduces exposure to risk, curbs avoidable investment errors and provides the investor with greater clarity, structure and confidence throughout the process. It is within this space of disciplined advisory and informed execution that the expertise of Africa Continental Engineering & Construction Network Ltd becomes particularly relevant.

At Africa Continental Engineering & Construction Network Ltd, our work extends beyond conventional due diligence. We are committed to delivering precise, context-driven market intelligence that enables investors to make informed, strategic decisions with confidence. 

Over the past decade, we have supported more than a thousand clients in navigating complex property transactions, combining technical insight with grounded market understanding to enhance investment outcomes.

Rethinking Profitability in Ghana’s Property Market

In conclusion, the assumption that real estate is automatically profitable and easily liquid is increasingly flawed in Ghana’s context. Structural constraints mean that ownership does not guarantee liquidity.

The real question investors must ask is no longer, how much is this property worth? but rather, who will buy this and how quickly can it be sold at a realistic price? Until that question is answered clearly, profitability remains uncertain and the ease of exit remains the true test of value.

References

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• Anim-Odame, W.K., Key, T., & Stevenson, S. (2010). The Ghanaian transaction-based residential indices. International Journal of Housing Markets and Analysis.
• Asiedu, et al. (2025). Oil discovery and the real estate market dynamics in Ghana: insights from Accra property market. Extractive Industries and Society.
• Dogbey, G.Y. (1993). Demand for Housing in Ghana. University of Ghana.
• Mensah-Kwarteng, M.A. (2019). Real Estate Demand and Supply Issues in Ghana: A Critical Survey. University of Ghana.
• Teye, J.K., Teye, I., & Asiedu, M.O. (2015). Financing housing in Ghana: challenges to the development of formal mortgage system. Journal of Housing and the Built Environment.
• Ametepey, S., et al. (2025). Dynamics of Accra’s Property Market in the Post-Oil Discovery Era. Published in Journal of African Real Estate and Urban Development.

About Author

Daniel Kontie is a young enthusiastic Ghanaian Entrepreneur, the Executive Chairman of the Africa Infrastructure Group; comprising the Africa Continental Engineering & Construction Network Ltd (ACECN), Falcon 48 Developers; Africa Infrastructure Energy and Africa Land Banking Investment Ltd. All these are growing establishments, disrupting the conventional way of brand building across the African Continent. Daniel is a columnist, a writer and a member of the Ghana Built Environment Writers Association. He can be contacted via Tel: +233209032280; Email: d.kontie@acecnltd.com;  Website: https://acecnltd.com/.