Archive for acecn

20Apr’26

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YOUR LAND TITLE IS NOT ENOUGH: THE DANGEROUS TRUTH ABOUT ROOT OF TITLE IN GHANA’S REAL ESTATE MARKET NO ONE TALKS ABOUT

YOUR LAND TITLE IS NOT ENOUGH: THE DANGEROUS TRUTH ABOUT ROOT OF TITLE IN GHANA’S REAL ESTATE MARKET NO ONE TALKS ABOUT   In Ghana’s rapidly expanding real estate sector, one question dominates nearly every transaction; that is, “Does it have a Land Title Certificate?. While this question appears prudent, it is fundamentally incomplete and in many cases, dangerously misleading. A Land Title Certificate is widely perceived as conclusive proof of ownership.  In practice, however, it represents only a procedural record of an interest in land, not an absolute guarantee of lawful ownership. The distinction is critical, yet often overlooked by investors, developers and even some industry professionals. At the core of land law lies the enduring legal doctrine “nemo dat quod non habet”, that is, one cannot give what one does not have. This principle is not merely academic, it is the legal foundation upon which valid title to land is built. It follows therefore that, the legitimacy of any land transaction depends not on the existence of documentation alone, but on the validity of the root from which that title is derived. It is against this backdrop that I decided to educate the unsuspecting public, particularly diaspora investors who fall victim to erroneous perception most often. I examine the persistent misconception that a Land Title Certificate constitutes conclusive proof of ownership within Ghana’s real estate market. I interrogates the legal and practical limitations of title registration, particularly the extent to which defective root of title continues to undermine the validity of registered interests. I further analyze Ghanaian law on proof of title, highlighting the centrality of root of title in resolving competing claims to land. Finally, I consider the implications for investors, developers and market actors and underscores the need for a more rigorous, root-focused approach to due diligence in land transactions rather than just title certificates. But before we go into the details 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, simply search “Africa Continental Engineering & Construction Network Ltd” on Google. Visit our website, 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 nitty-gritty of the discussion starting with the centrality of root of title. Centrality of Root of Title   The concept of root of title refers to the origin or foundation of a person’s claim to land. It answers the fundamental question: How did the purported owner acquire title in the first place? In Ghanaian jurisprudence, establishing a valid root of title is indispensable. The courts have consistently held that where title to land is in dispute, the success of a claim depends on proof of a credible and lawful root of title. This position was emphatically affirmed in Amuzu v. Oklikah (Amuzu; 1998–1999), where the Supreme Court held that a party claiming ownership must succeed on the strength of their own title, which must be rooted in a valid and provable origin. A defective or unproven root is fatal to the claim, regardless of possession or documentation. Similarly, in Quaye v. Kuevi (Quaye; Year), the court reiterated that in competing claims to land, priority is accorded not to the party with the most documentation or development, but to the party who can establish a better root of title. This underscores a crucial legal reality; that is, documentation does not cure illegitimacy.   Priority, Competing Claims and Judicial Determination   In resolving competing claims to land, the courts do not merely count documents; they evaluate the quality of title. The principle of priority is therefore not determined by the volume of documentation or the extent of development, but by the strength and legitimacy of the competing roots of title.  A party with fewer documents may prevail if their root is more credible and legally sound. This judicial approach reflects a consistent pattern within Ghanaian land law, where the courts prioritize substance over form and legitimacy over appearance.   Customary Land and the Complexity of Root Title   The complexity of root of title in Ghana is further compounded by the predominance of customary land ownership. In many instances, the true root of title originates from customary authorities, including stools, skins and families. Disputes frequently arise where grants are made without proper authority, without the requisite consent of principal elders, or in breach of customary law requirements.  In such cases, subsequent registration does not sanitize the defect. The validity of the title remains contingent on the legitimacy of the original customary grant, making it imperative to investigate not only documentary records but also the customary basis of ownership. Limits of Land Title Registration Ghana operates a dual system of land registration, deeds registration and title registration governed primarily by the Land Act, 2020 (Act 1036). While this framework aims to enhance certainty and security of tenure, they do not eliminate the risks associated with defective roots of title. The Lands Commission, as the statutory body responsible for registration, performs an administrative function.  Its role is to record interests in land, not to guarantee their substantive validity. Consequently, registration does not cure defects in title, nor does it extinguish competing claims arising from a superior root. This position reflects the broader legal understanding that title registration in Ghana is not entirely indefeasible. Unlike some Torrens systems, where registration confers absolute ownership, Ghana’s system allows for registered titles to be challenged and set aside where fraud, mistake, or illegitimacy in the root of title is established. Indefeasibility and the Limits of

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14Apr’26

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LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 10]: HOW WEAK COORDINATION BETWEEN CUSTOMARY LAND GOVERNANCE AND STATUTORY LAND ADMINISTRATION SYSTEMS IS DRIVING LAND LITIGATION AND UNDERMINING REAL ESTATE DEVELOPMENT

LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 10]: HOW WEAK COORDINATION BETWEEN CUSTOMARY LAND GOVERNANCE AND STATUTORY LAND ADMINISTRATION SYSTEMS IS DRIVING LAND LITIGATION AND UNDERMINING REAL ESTATE DEVELOPMENT Across Ghana’s rapidly expanding urban and peri-urban landscapes, thousands of acres of land are locked in disputes, stalled developments and protracted litigation. In cities such as Accra, Kumasi and Takoradi, it is not uncommon to find partially completed buildings abandoned for years due to competing ownership claims, overlapping allocations, or unresolved litigation over land titles. Investors frequently discover that land legitimately acquired from a traditional authority cannot be registered with the statutory land administration system because the same parcel has already been allocated to another party, is under litigation, or lacks proper documentation within the state system. These recurring challenges are not merely isolated incidents of fraud or negligence; rather, they reflect deeper structural weaknesses within Ghana’s land governance architecture, particularly the weak coordination between customary land governance system and statutory land administration institution. The consequences of this institutional disconnect are profound. It escalates land litigation, declining investor confidence, rising transaction costs and significant delays in real estate development. This article focuses on institutional arrangements and governance failures that continue to undermine land administration efficiency, especially, how weak coordination between customary land authorities and statutory land administration institutions that fuels land disputes and litigation in Ghana. It further explores the implications for the real estate sector and the broader economy and finally, proposes a practical framework for strengthening institutional collaboration in land Ghana’s land governance architecture. But before we go into the details 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, simply search “Africa Continental Engineering & Construction Network Ltd” on Google. Visit our website, 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 nitty-gritty of the discussion by establishing the structural context ofCustomary and Statutory Land Administration systems in Ghana. Understanding Ghana’s Dual Land Administration Structure Ghana’s land tenure system is characterized by a dual structure involving customary land ownership and statutory land administration. Approximately, 80 percent of land in Ghana is held under customary ownership, managed by stools, skins, families and traditional authorities (National Land Policy, 1999). Traditional leaders act as custodians of these lands on behalf of their communities and play a central role in allocating land rights to individuals and developers. At the same time, statutory institutions, particularly the Lands Commission are responsible for land registration, title certification, surveying and maintaining official land records under the framework of the Land Act 2020 (Act 1036). In theory, these two systems are expected to complement each other. Customary authorities allocate land while statutory institutions formalize and register the rights created through these allocations. However, in practice, coordination between these systems is often weak, fragmented, and poorly structured. Scholarly research on Ghana’s land governance consistently highlights the complexity arising from this dual structure and the institutional gaps between customary and statutory systems (Chigbu & Ansah, 2020; Ubink & Quan, 2008). These gaps create fertile ground for disputes, overlapping allocations and protracted legal conflicts. How Weak Institutional Coordination Drives Land Litigation Weak institutional coordination remains one of the most critical yet under-examined drivers of land litigation in Ghana. The fragmented interaction between key actors, such as the Lands Commission, customary authorities, local government bodies and the judiciary creates overlapping mandates, inconsistent records and procedural inefficiencies that fuel disputes rather than resolve them.  In the absence of a harmonized and interoperable land administration system, multiple claims to the same parcel of land often emerge. This undermines tenure security and investor confidence. Below is how these institutional disconnects not only perpetuate legal conflicts but also stall development and weaken the overall credibility of the land governance framework. Multiple Allocations of the Same Parcel of Land: One of the most common sources of land litigation in Ghana arises when the same parcel of land is allocated to multiple buyers. This often occurs because customary authorities allocate land without a synchronized system that verifies whether the land has already been registered or encumbered within the statutory system. Without effective data integration between traditional land custodians and statutory registries, it becomes difficult to verify prior interests in land before new allocations are made. Consequently, competing ownership claims frequently emerge, leading to lengthy litigation. Poor Documentation and Record-Keeping within Customary Systems: Another structural problem lies in the limited documentation and record-keeping practices within some customary land management systems. Many traditional authorities allocate land based on oral agreements or informal documentation that may not meet the legal standards required for statutory registration. Studies evaluating Customary Land Secretariats in Ghana found that many lacked effective record management systems and had difficulties maintaining accurate transaction records (Akwensivie, 2022). This documentation gap creates uncertainty when buyers attempt to formalize their interests through statutory registration. Institutional Fragmentation within the Land Administration System: Even within the statutory system, institutional fragmentation has historically complicated land administration processes. Although reforms have consolidated several agencies into the Lands Commission, coordination challenges between surveying, registration, valuation and planning functions continue to affect the efficiency of land administration.These inefficiencies create administrative bottlenecks that delay title registration and increase opportunities for disputes. Weak Integration of Customary Authorities into Formal Land Governance: Traditional authorities control the majority of Ghana’s land resources, yet their integration into formal land administration processes remains limited. Policy discussions involving institutions such as the National House of Chiefs have repeatedly emphasized the need for stronger collaboration

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08Apr’26

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WHAT YOUR REAL ESTATE DEVELOPER, BROKER AND PROPERTY CONSULTANT WILL NEVER TELL YOU ABOUT THE ILLIQUIDITY CHALLENGE IN GHANA’S PROPERTY MARKET: BE WELL INFORMED AND INVEST STRATEGICALLY

WHAT YOUR REAL ESTATE DEVELOPER, BROKER AND PROPERTY CONSULTANT WILL NEVER TELL YOU ABOUT THE ILLIQUIDITY CHALLENGE IN GHANA’S PROPERTY MARKET: BE WELL INFORMED AND INVEST STRATEGICALLY   For years, Ghana’s real estate sector has been promoted as one of the most secure and rewarding investment destinations on the African continent. From polished brochures to compelling sales conversations, the message has remained consistent; acquire property, benefit from steady appreciation and secure long-term wealth, which indeed is the reality. However, beneath this appealing narrative lies a critical reality that is rarely disclosed. It is a reality that many developers, brokers, consultants and agents consciously avoid discussing, particularly with new and diaspora investors who rely heavily on professional guidance to navigate the market. That reality is illiquidity. In practical terms; this raises a fundamental but often ignored question, that is, what is the true value of a property investment if it cannot be converted into cash within a reasonable timeframe. Therefore, the purpose of this article is to examine the structural illiquidity of Ghana’s real estate market, drawing attention to the critical disconnect between property value appreciation and the ability to convert assets into cash within a reasonable timeframe. It interrogates prevailing industry narratives that emphasize profitability while often downplaying exit constraints and explores the underlying factors responsible for the illiquidity in the market. It further highlights the implications for both local and diaspora investors and proposes a more liquidity-conscious approach to real estate investment decision-making. Beyond this, we also call for greater honesty, transparency and professional integrity among developers, brokers and consultants, urging industry actors to present a more balanced view of both opportunities and risks, including the often-ignored challenge of illiquidity. 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 the 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. The Silent Risk no One Mentions   In Ghana’s property market, the process of acquiring property is significantly easier than disposing of it. However, this fundamental truth is often absent from investment conversations. The reason is largely structural.  Most industry participants earn their income at the point of transaction completion, not from the long-term performance or liquidity of the asset. As a result, market narratives tend to emphasize ease of entry while downplaying the complexities of exit. This imbalance creates a dangerous information gap, leaving investors exposed to risks they did not fully anticipate at the time of purchase (World Bank, 2020). The Illusion of Profitability   Discussions around property investment in Ghana are heavily centered on appreciation. Investors are frequently presented with examples of rising land values in prime areas, rapid development in emerging corridors and the long-term capital gains associated with real estate ownership. While these claims are not inherently misleading, they are often incomplete.    Appreciation in itself does not guarantee financial utility. A property may increase significantly in value over time, yet if it cannot be sold within a reasonable period, that value remains largely theoretical. In practical terms, many investors find themselves in a position where they appear financially strong on paper but lack access to liquid capital when it is most needed (UN-Habitat, 2011).   What Industry Players won’t tell you   A closer examination of the market reveals realities that are widely known within the industry but seldom communicated openly. High-value properties often remain on the market for extended periods, sometimes spanning several years. The pool of qualified buyers is relatively small and transactions frequently collapse due to financing limitations or unresolved title issues (Bank of Ghana, 2022). Despite this, the dominant messaging continues to focus on projected returns, location advantages and future development potential. While not necessarily deceptive, this selective presentation of information creates an incomplete picture for investors, particularly those entering the market for the first time. A Real Market Reality   Across Ghana, it is not uncommon to encounter properties that remain unsold for two to five years, even when located in prime areas. Repossessed properties held by financial institutions often sit idle for extended periods, despite being competitively priced. Multiple agents may be engaged to market the same property, yet successful transactions remain elusive. These patterns are not isolated incidents but rather indicators of a deeper structural challenge within the market.   Why the Market is Illiquid   Limited Access to Mortgage Financing: Mortgage penetration remains extremely low, with fewer than 5% of Ghanaians accessing formal housing finance, meaning most transactions rely on cash payments (Bank of Ghana, 2022; World Bank, 2020). High Interest Rates: The cost of borrowing in Ghana has historically been high, discouraging property financing and limiting effective demand (International Monetary Fund, 2023). This has been a chronic systemic challenge until recently where interest rates took a significant nosedive. Narrow Buyer Pool: High-end properties are often targeted at diaspora investors and high-net-worth individuals, representing a relatively small segment of the market (UN-Habitat, 2011). Legal and Title Uncertainty: Land documentation challenges, overlapping ownership claims, and lengthy registration processes continue to affect transaction certainty and speed (World Bank, 2020). Weak Financial Intermediation: The absence of well-developed financial products such as home equity loans, refinancing options and property-backed credit facilities means that property owners have limited ways to access the value of their assets without selling them outright (Bank of Ghana, 2022). Absence of a Secondary Mortgage Market   A critical but often overlooked structural constraint is the underdevelopment of a

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05Apr’26

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GHANA’S LAND OWNERSHIP CRISIS: CAN BLOCKCHAIN TECHNOLOGY BE THE GAME CHANGER

GHANA’S LAND OWNERSHIP CRISIS: CAN BLOCKCHAIN TECHNOLOGY BE THE GAME CHANGER For decades, land ownership disputes have remained one of the most persistent risks in Ghana’s real estate sector. Investors, developers, financial institutions and ordinary citizens frequently encounter challenges such as multiple sales of the same land, fraudulent documentation, inconsistent ownership records and prolonged litigation. These problems have not only slowed real estate development but have also undermined investor confidence in Ghana’s property market. The economic implications are significant. Land disputes can stall infrastructure projects, delay housing delivery and discourage long-term investment. In an effort to address these challenges, Ghana has undertaken several reforms in land administration.  The consolidation of land legislation under the Land Act, 2020 (Act 1036) and the ongoing digitization initiatives by the Lands Commission represent important steps toward improving land governance. Despite these reforms however, structural challenges within Ghana’s land administration system persist.  Fragmented record-keeping, overlapping institutional mandates, customary land tenure complexities and weak verification systems continue to create vulnerabilities within the land market. It is against this backdrop that Blockchain technology is increasingly attracting global attention as a potential tool for transforming land administration systems. The question policymakers must now confront is whether Blockchain could realistically help address Ghana’s land ownership challenges, or whether the technology risks being seen as a solution to problems that are fundamentally institutional, rather than technological. This article examines whether Blockchain technology can offer a viable solution to Ghana’s persistent land ownership challenges, which continue to undermine real estate development and investor confidence.  It explores the nature and causes of land disputes in Ghana, highlights ongoing reforms such as the Land Act, 2020 (Act 1036) and assesses the potential of Blockchain to improve transparency, reduce fraud and strengthen land administration systems. Drawing on global experiences and local realities, the article further interrogates the limitations of technology in the absence of strong institutions and outlines the key preconditions required for any successful adoption of Blockchain within Ghana’s land governance framework. But before we go into the details 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 search on Google, “Africa Continental Engineering & Construction Network Ltd”, visit the 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 issues, starting with understanding Blockchain technology. Understanding Blockchain Technology Blockchain technology is essentially a decentralized digital ledger that records transactions across multiple computers in a way that makes the records extremely difficult to alter once they are entered. Unlike traditional databases that are controlled by a central authority, Blockchain systems distribute data across a network of participants. Every transaction added to the ledger is time-stamped and linked to previous entries, creating a secure and transparent chain of records. According to the World Bank, bBlockchain technology has the potential to improve transparency, reduce fraud and enhance trust in record-keeping systems (World Bank, 2019). Applied to land administration, Blockchain could fundamentally transform how property rights are recorded, verified and transferred. Why Blockchain Matters in Land Administration Land administration systems rely heavily on accurate record-keeping and the ability to verify ownership histories. In many developing countries, however, land records are often fragmented, incomplete or vulnerable to manipulation just as it is in Ghana’s situation. A Blockchain-based land registry could introduce several improvements. First, every land transaction could be permanently recorded on a tamper-resistant digital ledger, making it extremely difficult to alter historical records without leaving a transparent footprint. Second, the ownership history of a property could be verified instantly, reducing the time required for due diligence during land transactions. Third, Blockchain could significantly reduce the risk of document manipulation and title fraud, which are among the leading causes of land disputes in Ghana. Fourth, the system could make multiple sales of the same land far more difficult, as each transaction would be publicly traceable on the ledger and online. Finally, Blockchain could streamline property verification processes for investors, banks and regulators. In such a system, trust would shift from individuals and paper documentation to a transparent technological infrastructure. Potential Impact for Ghana If properly implemented, Blockchain-based land registries could help address several long-standing weaknesses within Ghana’s property market. These include, weak land record management, conflicting ownership claims, lengthy verification processes, delays in property registration, investor uncertainty in land transactions.  Improving these systems would not only reduce litigation but could also unlock greater investment in Ghana’s real estate sector. The United Nations Economic Commission for Europe notes that, secure land administration systems are essential for economic development because they enable property to be used as collateral for financing and investment (UNECE, 2019). In Ghana, where land disputes remain common, strengthening the credibility of land records could have significant economic benefits. Lessons from Countries Experimenting with Blockchain Land Registries Several countries have already begun experimenting with Blockchain-supported land registries. One of the most widely cited examples is Georgia, where the national land registry partnered with Blockchain technology firms to record property transactions on a Blockchain platform. The initiative significantly improved transparency and reduced the time required for property verification. Similarly, Sweden launched pilot programs exploring Blockchain-based property transaction systems aimed at reducing fraud and improving transaction efficiency. These initiatives demonstrate that Blockchain can enhance trust, transparency and efficiency in property transactions when properly integrated into existing land administration systems. However, they also highlight an important lesson, that is, technology works best when built upon already functional land governance systems. Why Technology alone cannot Solve Ghana’s Land Challenges While Blockchain offers exciting possibilities, it is

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04Apr’26

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THE ILLIQUIDITY TRAP IN GHANA’S REAL ESTATE MARKET: WHY PROPERTY-HEAVY PORTFOLIOS ACROSS AFRICA REQUIRES A RETHINK

THE ILLIQUIDITY TRAP IN GHANA’S REAL ESTATE MARKET: WHY PROPERTY-HEAVY PORTFOLIOS ACROSS AFRICA REQUIRES A RETHINK As a real estate developer and consultant with extensive experience across major African markets, particularly Ghana, I have consistently highlighted the sector’s strong profitability. However, there is a critical dimension of real estate investment in Ghana that industry players rarely disclose. Until now, I have not addressed it directly. But today, I take a deliberate step to bring this issue to the attention of diaspora investors in particular and all new market entrants, being fully aware that such transparency may be met with resistance from fellow industry participants. Nonetheless, I remain firmly convinced that market integrity, trust and openness, though sometimes uncomfortable in the short term; are essential for building a resilient and credible real estate investment environment.  To be honest with you, the illiquidity challenge is a reality many developers, real estate brokers, professionals and consultants avoid mentioning. They focus only on profitability while concealing this significant risk for their own parochial interests. 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 the 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. A few years ago, I was mandated to sell a 5-bedroom property in Tema Community 25 behind the Devtraco Estate valued at approximately USD $200,000, an asset that on paper reflected the strong profitability and value appreciation typical of Ghana’s real estate market. However, despite being well-located and competitively priced, the property took nearly 4 years to sell even with six other agents engaged alongside myself. This highlights a critical disconnect between asset value and market liquidity in Ghana’s real estate market. Over this period, the property went through repeated cycles of listing, negotiations and several failed closures, effectively locking in the client’s capital. This challenge is not isolated. I am currently handling seven repossessed properties for a financial institution across prime areas such as East Legon, Trassaco Valley Estate, Tema and after more than two years, none has been sold. These experiences underscore a fundamental paradox in Ghana’s real estate sector, whilst property investment remains highly profitable; it is significantly illiquid, often undermining the very essence of investment. This experience is not anecdotal in the narrow sense, it is emblematic of a broader structural issue within Ghana’s real estate market and indeed, across much of sub-Saharan Africa. It points to a critical but under-discussed dimension of property investment: illiquidity. The Illusion of Wealth: When Valuation does not Equal Liquidity Property investment discourse in Ghana is heavily skewed toward appreciation. Conversations frequently highlight rising land values in East Legon, sustained demand in Airport Residential, and rapid development in growth corridors such as the East Legon Hills etc. These narratives are not without merit, Ghana’s urban property markets have delivered substantial capital gains over the past two decades. However, appreciation alone does not equate to financial utility. A property may triple in value over five (5) years, yet if it cannot be sold or leveraged within a reasonable timeframe, its economic usefulness becomes severely constrained. In fact, evidence suggests that in markets like Ghana, price corrections often occur not through sharp declines but through reduced transaction volumes and extended selling periods (Africanvestor, 2026). In effect, liquidity not price, absorbs market shocks. This creates a persistent illusion of wealth. Investors appear financially robust based on asset valuations, yet their ability to deploy that wealth in response to real-world needs remains limited. The Human Cost of Illiquidity The implications of illiquidity extend beyond abstract financial theory into the lived realities of investors. During the 4year period it took to sell the property in question, any urgent need for capital, whether for healthcare, education or business investment would have exposed a fundamental vulnerability. In such scenarios, the asset’s nominal value becomes irrelevant. What matters is access. Without the ability to convert property into cash quickly or to borrow against it efficiently, the investor is left in a paradoxical position; asset-rich but cash-strapped. This phenomenon is increasingly recognized across African markets, where property ownership is often seen as a primary store of wealth but not necessarily a flexible financial instrument. Structural Drivers of Illiquidity in Ghana’s Property Market The illiquidity observed in Ghana’s real estate sector is not incidental, it is the product of several reinforcing structural constraints. Mortgage penetration remains fantastically low, with fewer than 5% of homeowners accessing formal housing finance (Graphic Business, 2026). High interest rates, historically exceeding 30% have made borrowing prohibitively expensive for most households. As a result, the market is dominated by cash transactions, which significantly limits the pool of potential buyers and slows transaction cycles. Compounding this is the underdevelopment of Ghana’s housing finance system. The absence of a robust secondary mortgage market means that financial institutions cannot easily offload mortgage risk or recycle capital. This constrains lending capacity and reinforces a cautious approach to property-backed financing. Banks in turn, exhibit understandable reluctance to extend credit against residential property. The reason is this, when defaults occur, lenders are left holding collateral that is itself difficult to liquidate as it is the case with the financial institution’s repossessed properties I mentioned earlier, which I have listed for the past 2 years without a single sale. Empirical studies confirm that the usability of landed property as collateral in Ghana is heavily influenced by its marketability and legal clarity (Heliyon, 2023). In a market

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03Apr’26

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INVESTING IN DUBAI REAL ESTATE DURING GEOPOLITICAL UNCERTAINTY: RISKS, OPPORTUNITIES AND ALTERNATIVES

INVESTING IN DUBAI REAL ESTATE DURING GEOPOLITICAL UNCERTAINTY: RISKS, OPPORTUNITIES AND ALTERNATIVES Global real estate markets are historically sensitive to geopolitical shocks, often reacting with short-term volatility but long-term resilience. The recent escalation of tensions involving Israel, the United States of America and Iran has triggered uncertainty across key investment destinations in the Middle East, including Dubai, one of the world’s most dynamic real estate hubs. Amid reports of slowing demand, investor hesitation and price corrections, a critical question has emerged among international investors; should this period be viewed as a risk to avoid or a strategic entry point into the market at discounted valuations. In this article, we examine Dubai’s current situation in the context of global historical precedents and provide a data-backed guide for investors navigating this period of uncertainty. 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 the 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. Dubai Real Estate under Pressure Dubai’s real estate market has traditionally demonstrated strong resilience, underpinned by foreign investment inflows, tax advantages and its status as a global business and tourism hub. However, geopolitical instability in the Middle East introduces investor psychology risk, resulting in capital flight to perceived safe havens, deferred investment decisions and short-term price corrections. According to recent market observations, transaction volumes took a nosedive and some speculative investors are exiting positions. However, it is critical to distinguish between market sentiment-driven corrections and fundamental economic decline. Dubai’s underlying fundamentals remain intact; zero property tax environment, strong tourism and expatriate inflows and continued infrastructure expansion etc. Historically, such fundamentals tend to anchor long-term market sustainability and that has always been the reason for Dubai’s real estate market resilience. Lessons from History: How Real Estate Markets behave during Conflict The Post-Gulf War Recovery in 1991: Following the Gulf War, regional real estate markets experienced a temporary decline. However, markets like Dubai rebounded strongly within a few years as stability returned and capital re-entered the region according to the World Bank (World Bank, 1992). The 2008 Global Economic Melt-Down (2008–2012): Dubai’s property market saw prices fall significantly by over 50% during the crisis, however, investors who entered the market at that time realized significant gains during the recovery phase between 2010 and 2012 (Dubai Land Department, 2016). Then Comes COVID-19 Pandemic in 2020: Global uncertainty led to a slowdown in real estate transactions worldwide. Dubai, however, recorded one of its strongest rebounds post-pandemic, with record-breaking transactions in 2021 to 2023 (Knight Frank, 2023). Typically,real estate markets impacted by external shocks most often follow a correction, leading to stabilization, recovery and growth cycle. Strategic Investment Perspective For seasoned investors, uncertainty often presents counter-cyclical entry points. Key advantages of investing now include but not limited to: Discounted Asset Prices: Periods of fear often lead to undervaluation of high-quality assets. Reduced Competition: Fewer active buyers give negotiation power to prospective buyers. Long-Term Capital Appreciation: As geopolitical tensions ease, markets typically rebound, restoring investor confidence and significant property appreciation. Rental Yield Stability: Dubai continues to offer attractive rental yields averaging 5 to 8%, which helps cushion value volatility against capital (Global Property Guide, 2024). Risks Investors must consider It is also important to note that, investors must also weigh the downside which includes but not limited to the following, the possibility of a prolonged geopolitical instability, liquidity constraints in the short term, currency and capital flow risks and the overexposure to a single regional market. But the good news however is that, Dubai remains a high-potential by all permutations looking into the crystal ball. Why Ghana is a Prime Alternative Investment Destination: Looking beyond Dubai For investors seeking to hedge geopolitical risks, diversification into emerging high-growth real estate markets is not only prudent but a strategic option. As uncertainty in Dubai creates hesitation, Ghana presents a compelling, data-backed alternative to such investors. Below are a few a statistics to buttress this position. Strong Housing Demand across all Segments: Ghana’s housing deficit exceeds 1.8 million units according to the Ministry of Works and Housing (Ministry of Works and Housing, 2023).Annual housing demand is estimated at over 120,000 units, with supply far below this threshold reported by the World Bank in 2020 (World Bank, 2020). Moreover, the Ghana Statistical Service reported that, urban population growth continues to exceed 3% annually, directly fueling real estate demand in urban centers such as Accra (National Capital), Kumasi, Ashanti Regional Capital, Takoradi, Western Regional Capital, Tamale, Northern Regional Capital etc (GSS, 2022). Luxury Segment: Growing expatriate and high-net-worth demand in Accra such as Airport Residential area, Cantonment, Osu, Roman Ridge, North Ridge, Burma Hills, East Legon, East Legon Hills, Dzorwulo etc, coupled with the risingdemand for serviced apartments and gated communities along all growth corridors. Mid-Income Segment: Rapid urbanization driving demand for affordable housing, the expansion of mortgage and developer-financing schemes, mortgage affordability and accessibility occasioned by the recent strong macroeconomic fundamentals.   Mixed-Use Developments: Rising interest in integrated developments combining residential, retail and office spaces coupled with the growth of urban commercial hubs across major urban centers etc. Ghana as Gateway Access to ECOWAS Regional Market: Unlike saturated global markets, Ghana remains a promising real estate market offering first-mover advantages, lower entry costs and significant capital appreciation potential, particularly in mixed-use and modern housing developments.  Additionally, Ghana’s stable political environment and its strategic position as a gateway to the ECOWAS

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