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03Jul’25
UNDERSTANDING WHY REAL ESTATE PROPERTIES IN GHANA ARE PRICED IN US DOLLAR: DEMYSTIFYING THE CAUSES AND IMPACTS
UNDERSTANDING WHY REAL ESTATE PROPERTIES IN GHANA ARE PRICED IN US DOLLAR: DEMYSTIFYING THE CAUSES AND IMPACTS Before I entered the real estate industry, I used to question why properties in Ghana are most often priced in US Dollars even though the national currency is not the US Dollar. I became an ardent critique of the practice and frown at any property I see listed in US Dollars until I entered the real estate industry. Similarly, in the last three (3) years, I have had people ask the same question repeatedly, on several industry conferences and platforms. But what made me more concerned and triggered the decision to publish this article is an emotional video someone posted on Facebook a couple of months ago. The gentleman featured in the video literally insulted industry players for always quoting property prices in US Dollars and went ahead to jubilate over the ratios of losses suffered by sector players occasioned by the precipitous decline in value of the US Dollar against the Cedi in recent times. Despite the public’s disgust for this phenomenon, “it is also illegal to price, advertise, or receive payment for goods and services in foreign currency without authorization from the Bank of Ghana pursuant to Section (3) (1) and (4) of the Foreign Exchange Act, 2006 (Act 723). One would then wonder why the public, including some parastatal institutions, are still engaging in this act even though the law frowns on it. Therefore, the purpose of today’s article is to educate the public about why real estate property prices are most often quoted in US Dollar in defiance of law in Ghana. But before we go into the details, it is important to remind you that Ghana is not the only developing economy where real estate properties are quoted in US Dollar. For want of space and time, we may not be able to mention many, but this practice is also prevalent in countries such as Nigeria, especially in Lagos and Abuja where majority of Nigeria’s high-end properties are situated, Nairobi, Kenya, Harare, Zimbabwe, Luanda, Angola, Maputo, Mozambique etc. Even there is enough evidence of this practice outside the African continent as well, to cite a few, Panama, United Arab Emirates (UAE), Cambodia, Vietnam and some Caribbean nations etc also quote real estate property prices in US Dollars. Now the multimillion-dollar question many ask and do not get the answers is this, why is this the case in Ghana and the aforementioned countries. Do not go away, the answer to this question is finally here, get a glass of a chilled soft drink and stay tuned as we run you through the basic economic principles behind these decisions. We shall be looking at a few, among which are these; currency instability, high direct foreign demand, a hedge against inflation and finally, a hedge against exchange rate depreciation losses. We shall conclude by giving economic impacts, whilst offering some recommendations for consideration by policy makers and the public. Currency Instability Ghana has always remained an import-driven economy, and this has made the Cedi a volatile currency among major global currencies since independence. This volatility comes with exchange rate depreciation losses to both private individuals and businesses. Therefore, in order to hedge investments and other assets against these depreciation losses, developers and investors price properties in US Dollars. Remember that the US Dollar is one of the most stable currencies across the globe and denominating property prices in the US Dollar serves as a preserve of value or a hedge against the impacts of local currency volatility. This ensures that the value of the property or the investment in question remains relatively constant over time. Let me cite a practical example for ease of understanding. The average US Dollar to Cedi exchange rate at the end of 2023 was Ghs 11.91/1US Dollar and it shot up astronomically within a short period to Ghs 15.84 in early 2024. If in 2023 I had a property that is listed for sale at Ghs 200,000 its UD Dollar equivalent at that time will be approximately USD$16,797.65 at the exchange rate of Ghs 11.91/1US Dollar. If I fail to sell it at that time and eventually sell it in 2024 at the same Ghs 200,000, the US Dollar equivalent of my Ghs 200,000 now will be USD$12,626.26 approximately instead of the USD$16,797.65. This will lead to an exchange rate depreciation loss of about USD$4,171.38 with its Cedi equivalent being Ghs 66,074.78. This in percentage terms will be about 33% loss, holding all other variables constant. This is significant!. It is therefore natural to see smart investors and individuals alike price their properties in a more stable currency, the US Dollar, rather than an extremely volatile currency such as the Cedi. Inflation Hedge Apart from the impact of exchange rate volatility, inflation over time erodes the purchasing power of local currencies. I mentioned this in one of my articles, properties are not like a tent that can be assembled in minutes. They take years to complete and even the selling takes a much longer time sometimes, particularly high-end properties. What this means essentially is that one property listed for sale can go through several waves of inflation and exchange rates, just as it is the case with the construction process. Therefore, developers will undoubtedly protect their investment against the cataclysmic effects of these volatilities over time. For ease of comprehension, let me use another practical example here also, on the assumption that all other variables are held constant. If a property is listed for sale at Ghs 100,000 at a time inflation rate was 10% and sells in two (2) years later when inflation rate stood at 20%, practically, the real value of Ghs 100,000 will drop. Using simple arithmetic, value after first year when inflation was 10% will be Ghs 100,000 (1+0.10) which will be equal to Ghs 110,000. Let’s take a look at the second year where inflation is 20%. Ghs 110,000
17Jun’25
EVALUATING THE LIMITATIONS OF GHANA’S REAL ESTATE AGENCY LAW [ACT 1047]: A CALL FOR POLICY REFINEMENT AND INCLUSIVE REFORMS
EVALUATING THE LIMITATIONS OF GHANA’S REAL ESTATE AGENCY ACT, 2020 (ACT 1047): A CALL FOR POLICY REFINEMENT AND INCLUSIVE REFORMS A couple of months ago I was officially invited by the new management of the Ghana Real Estate Agency Council (REAC) to their office at Cantonment to meet the new Chief Executive Officer. They had seen my contributions as an industry thought leader and wanted to engage me further for a discussion to better shape the Real Estate Sector for the common good of Ghanaians. It was indeed a fruitful session. All thanks and appreciation to this young and intelligent National Service gentleman, Mr. David Dzantor, who facilitated the invitation and the scheduling of that all-important meeting. Whilst I was leaving the office after the meeting that day, they handed me the hard copy of the Real Estate Agency Act, Act 2020 (Act 1047). In the Act I found a small leaflet, in it were highlights of the purpose and mandate of the Council. This was put in a Socratic form of presentation, a question which read “why regulate” and the answer given was “market failure” occasioned by one, “lack of professionalism two, uncontrolled pricing three, transaction risk four, “incidence of fraud and five, “money laundering”. But the question however is, is the Real Estate Agency Act 2020 (Act 1047) inclusive enough to address the issues in the above five (5) thematic areas?. Let me leave this as a rhetorical question for readers to mull as we share our perspective on this all-important subject. But before we go into the substance of the discussion, let me set a few records straight, that our contributions, opinions and suggestions in this article are to help shape not just the real estate agency sector, but the whole real estate industry at large. We do not have any parochial interest whatsoever, implicit or explicit; our contributions are borne purely out of a nationalistic position in pursuit of the common good for all Ghanaian citizens. We have no prejudice against anyone, neither is there any motive intended to target, attack, denigrate, or frustrate anyone individual or a group of people. We therefore appeal to all stakeholders of the real estate industry to accept our opinions or views as nationalistic and must not be construed to mean anything else apart from this. Now, without wasting time, let us get back to the basics. The Ghana Real Estate Agency Act, 2020 (Act 1047), represents a significant legislative step towards regulating the real estate agency sector aimed at enhancing professionalism, transparency, and consumer protection. While the Act introduces commendable measures, several limitations hinder its full potential in transforming the real estate agency landscape. We shall be discussing a few in the foregoing paragraphs among which are these; the exclusion of the informal sector participants, rigid transaction requirements, discretionary commission system, double commission system, the charging of inspection fees, and the exemptions given to nonresident real estate professionals. Exclusion of Informal Sector Participants The Act mandates licensing for real estate agents and brokers, requiring the writing and passing of standardized examinations pursuant to Section (24) (a) (i) and (ii), which says, (24) The Board may issue a license to a person if the person (a) is an individual who has passed a qualifying examination conducted by (i) the Board; or (ii) an independent testing service designated by the Board. This criterion potentially excludes a significant portion of the informal sector participants who, despite lacking formal education, possess practical experience in real estate agency business. Their exclusion we think is not only counter-productive in our opinion because of the unemployment it could cause but also the challenge of exclusivity. We are of the opinion that the exclusion of the informal participants who existed years before the coming into force of Act 2020 (Act 1047) is too draconian and will require a solemn introspection by policy makers. The truth is there are many real estate agents and agencies that are doing genuine agency businesses maned by individuals who are not formally educated enough to sit and pass the licensing exam instituted by Act 1047. Conventionally, existing practitioners in many professions before the coming into force of a regulation such as this are normally given in-service training and are being absorbed into the system as the licensing exams apply to only new entrants coming into the space after the regulation. For this reason, we hereby recommend that all policy makers take a second look at this and make a provision for the absorption of the informal participants to avoid job losses and further market distortions. Rigid Transactional Requirements The Act prohibits cash transactions in real estate payments mandating payments through bank drafts, cheques, or electronic transfers, pursuant to Section (45) (1) of Act 1047, which states that, “payment for each real estate transactions shall be by bank draft, cheque, bank transfer, or electronic money transfer”, whilst subsection (2) says, “a real estate broker or a real estate agent shall not accept cash in payment of any real estate transaction”. Now, this is where the challenge is, while this aims to enhance transparency and curb money laundering, it poses a challenge in a predominantly cash-based economy such as ours. The lack of accessible banking services in certain regions may hinder compliance and exclude potential market participants. Despite the progress made over the years in achieving universal financial inclusion for Ghanaians, challenges persist, some studies in recent times highlighted low bank account ownership and usage, the dominance of cash transactions and limited access to financial services even in certain district capitals in Ghana, remains a significant challenge to compliance (NFIDs 20222). In the traditional communities even in the national city Accra such as Teshie, Jamestown, Gamashie, Lartebiokorshie just to mention a few, there are many landlords who do not own neither a bank account nor mobile money account. This will create a serious inconvenience for such landlords who will have to open bank accounts which they will not operate but for the collection of only
09Jun’25
STRENGTHENING OF THE CEDI AGAINST MAJOR CURRENCIES AND ITS RIPPLE EFFECTS ON GHANA’S REAL ESTATE SECTOR: IMPLICATIONS FOR DEVELOPERS, BUYERS AND INVESTORS
STRENGTHENING OF THE CEDI AGAINST MAJOR CURRENCIES AND ITS RIPPLE EFFECTS ON GHANA’S REAL ESTATE SECTOR: IMPLICATIONS FOR DEVELOPERS, BUYERS AND INVESTORS Between January and May 2025, the Ghanaian cedi has experienced a remarkable appreciation of approximately 16% against the US dollar, positioning it as one of the world’s best-performing currencies, according to Bloomberg News (2025). This surge is attributed to a combination of factors, including the Bank of Ghana’s tight monetary policy, increased gold reserves, improved fiscal discipline and enhanced foreign exchange inflows. This development came as a huge sigh of relief to Ghanaians as it appears to be a novel development leading to a significant reduction in fuel prices, transportation fares and the general price level of goods and services. For this reason, pressure has been mounted on the Ghana Real Estate Developers Association (GREDA) and other stakeholders of the real state sector alike to also respond to this general price reduction by also reducing property prices occasioned by the strengthening of the Cedi. While this development signals macroeconomic stability, boosting investor confidence, it has nuanced implications for Ghana’s real estate sector, where properties are predominantly priced in US dollars. This article delves into the multifaceted impacts of the Cedi’s appreciation on the real estate market and offers strategic recommendations to navigate the evolving landscape. But before we go into the details, do you think this call to reduce property prices is justifiable? Do not go away, get ready as we discuss details of the insights in the subsequent paragraphs of this article. Implications for Local Property Buyers In fact, the Cedi’s appreciation has led to a huge exchange rate depreciation loses in favor of buyers and at the expense of developers. What this means is that a prospective US dollar earning buyer will need more dollars to buy a property now than it was in the past, a stuck reverse of the status quo in the last couple of years. Put it differently, the Cedi’s appreciation against the US Dollar has led to a significant decrease in the local currency equivalent of dollar-priced properties. For ease of comprehension, let me give you a practical example, a property listed at USD$200,000 would have cost approximately Ghs 3 million at an exchange rate of GHS 15/1$USD in January 2025. By May 2025, at an exchange rate of GHS 10.20/1$USD, the same property would now cost around Ghs 2.04 million resulting in an exchange rate loss of about USD$94,000, a Cedi equivalent of Ghs 960,000 approximately. This is a huge quantum leap, making properties more affordable for Cedi-earning or local buyers. If these gains are sustained, these reduced Cedi-equivalent prices will spur interest among local buyers, particularly the emerging middle class seeking investment opportunities in the real estate sector. This will lead to a significant expansion in demand for properties in the mid-end market segment, where demand remains robust, driven by urbanization and a growing middle class. However, demand may remain unchanged even with upward price adjustment for high-end properties by virtue of the ostentatious nature of that category. Implications for Foreign Property Buyers Property demand from the diaspora community or foreign buyers will fall due to the strengthening of the Cedi. What this means essentially is that foreign buyers will need more dollars to be able to buy a property which could have been bought with less dollars in the past as demonstrated earlier in the preceding subheading, “implications for local property buyers”. For example, in January where the exchange rate was USD$15/GHS1, a person buying a property worth USD$100,000 in Ghana would need Ghs 1.5million cedis to be able to buy the property, now compare that to today’s (June, 3, 2025) exchange rate of USD$10.22/GHS1, this same buyer will need about USD$146,777 to be able to purchase the property. This gives an exchange rate difference of about USD$46,777 in favor of the developer and against this foreign buyer in question. This is significant and has the potential to discourage foreign participation in the Ghanaian real estate market in the short-term. Implications for Local Buyers on US Dollar Denominated Mortgage Loans With a stronger Ghana Cedi, the value of US Dollar denominated mortgage loans decreases for local cedi earning buyers. This translates into lower monthly payments, freeing up more funds for other expenses or savings. This is the time all local cedi earning buyers with US Dollar denominated mortgage facility can make a lot of savings by massing up savings to service their loans before the Dollar bounces back, if it ever does at all. Implications for Buyers on Cedi Denominated Mortgage Loans For property buyers on Cedi denominated mortgage or construction loan facilities, there are virtually no negative implications. However, there is a potential risk of interest rate hikes if the Bank of Ghana (BoG) continue to tighten the policy rate in attempt to curtail further inflation. Therefore, until the economic fundamentals are reviewed to focus more on supply side economics, the current policy rate tightening is a cul-de-sac and will soon reach its maximum potential resulting in extreme interest rates against buyers on floating or adjustable mortgage interest rates. For this reason, it is also advisable for those on floating or adjustable Cedi denominated mortgage facilities to double up on their loan servicing efforts. Implications for Resident Foreign Property Developers/Investors On the assumption that these gains are sustained, foreign investors or buyers may exhibit caution due to the reduced dollar-denominated returns when converting profits back to their home currencies. The appreciation of the Cedi implies that the same Dollar investment yields fewer returns upon repatriation, potentially dampening foreign investment enthusiasm in the short term. This development is likely to trigger a short-term foreign investor withdrawal from the market, with existing foreign residential developers likely to stop listing their properties for sale in expectation of a stronger Dollar or adjust prices to compensate for the exchange rate depreciation losses. Moreover, both resident foreign and local developers who rely largely on diaspora clients may face low sales turnover as
05Jun’25
PRESS RELEASE: THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES, 2025) COMES OFF 29TH SEPTEMBER 2025 – 30TH SEPTEMBER 2025.
PRESS RELEASE: THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES, 2025) COMES OFF 29TH SEPTEMBER 2025 TO 30TH SEPTEMBER 2025. The Africa Continental Engineering & Construction Network is set to organize the 3RD African Continental Engineering, Architecture, Construction and Real Estate Summit dubbed (ACEACRES, 2025) come September 29, 20205 and September 30, 2025, at De Icon Conference Centre, East Legon, Accra. This 3rd edition comes under the theme, Revolutionizing the Built Environment for Sustainable Infrastructure Development Through the use of Disruptive Innovations, Big Data and Quantum Technologies. The objective is to bring together industry experts, innovators, investors, thought leaders, and top business executives from various sectors of the built environment across the African continent (Nigeria, South Africa, Rwanda, Uganda, Ethiopia, Algeria, Egypt etc), to share knowledge, showcase cutting-edge innovations, technologies and to brainstorm on how the African continent can catch up with modern trends using disruptive innovations, big data and quantum technologies. The choice of this year’s theme is partly influenced by the United Nation’s universal declaration of the year 2025 as the International Year of Quantum Science and Technologies, launched at its UNESCO Headquarters in Paris, February 4, 2025. Objective of the Summit The core objective of ACEACRES is to build an integrated African built environment to create opportunity for knowledge sharing, technology transfer, capacity building for socio-economic transformation of the continent through high-end business networking, partnerships and collaborations. This premier event serves as a strategic platform for industry leaders, architects, engineers, surveyors, planners, developers, legal practitioners, SMEs, policymakers, project managers, investors etc to collaborate on shared mission to transform Africa’s physical and economic landscape through sustainable development, inclusive growth, and impactful public-private partnerships. Who to Attend As it has always been our target, ACEACRES is designed to bring under one roof, all stakeholders of the built environment: the building contractors, road contractors, engineers (civil, electrical, electronic, mechanical, structural, safety, mining, environmental, chemical, geotechnical, geodetic, materials etc), surveyors, planners, architects, project managers, real estate developers, builders. Landscape professionals/contractors, real estate professionals, home buyers, building and construction material suppliers, equipment/machinery suppliers, glaziers, fabricators, interior deco companies/professionals, roofing companies/technicians, transport & logistics companies, facility management professionals/institutions, innovators, technologists, financial and insurance institutions, investors, government agencies, regulators, IoT experts, construction legal consultants, artificial intelligence professionals, sustainability consultants, artisans et cetera. Key and Guest Speakers The event shall host two (2) guest speakers including the keynote speaker, with Dr. Daniel McKorley, Executive Chairman, McDan Group of Companies, Ghana and Mr. Tony O. Elumelu, Executive Chairman, Heirs Holdings and UBA Bank Group, Nigeria serving as the guest speakers, whilst Ing. Prof. Elsie Effah Kaufmann, Dean, School of Engineering Sciences, University of Ghana speaking as the keynote speaker. In all, a total of about 40 industry thought leaders across the African Continent will be speaking at this all-important Summit. African Sub-regional and International Participant’s Confirmations High-profile participants from across Africa and international participants from Canada, Australia, United States of America, South America, United Kingdom, Germany et cetera. An estimated number of about 800 in-person participants are expected with confirmations already received from these African sub-regional states namely, Nigeria, Rwanda, Kenya, Uganda, South Africa, Egypt, Liberia, Sierra Leon and Morocco. Benefits to be Derived by Exhibitors and Participants Exhibitors and participants alike will have the opportunity to leverage on this common regional platform for all stakeholders of the African built environment to gain industry insights, network and build collaborations aimed at maximizing the continent’s prosperity at large. Sponsors For sponsors or exhibitors, B2B, B2C networking opportunities, connecting with manufacturers, distributors, wholesalers, retailers as well as end consumers, access to attendees for data for future leads generation, meet potential investors, enhance brand visibility and credibility, real time lead generation, gain industry insights eg dynamics and modern trends, identification of new business opportunities, opportunity for joint ventures. Opportunity to close B2B contracts, seal partnership deals, boost brand development, maximize sales, share product knowledge and utility information with potential customers, demonstrate unique selling proposition to potential customers, build strong network with influential industry players, get in contact with the diaspora community and opportunity to get connected by organizers to top-rated projects/contractors/professionals in Ghana and across the African continent. Participants Networking opportunities with industry leaders, access to cutting edge insights and new trends, learning from successful case studies, building personal capacity for professional resilience, exposure to new business opportunities, gaining inspiration and motivation from industry thought leaders, building relationship with potential employers/employees and mentors, access to innovative products. Meeting with potential investors, opportunity to share your perspective during Q&A time, identify lucrative business niches in the industry et cetera. In addition, participants will gain industry insights eg dynamics and modern trends, industry/academia engagements aimed at reaching a consensus on skills training, meet regulators to proffer regulatory solutions, meet the CEO of the Africa Continental Engineering & Construction Network and team for specific industry information and opportunities, et cetera. Achievements of previous Editions The 2023 and 2024 editions recorded close to a thousand (1000) participants combined and in a couple of two (2) years down the line, the Summit has been able to refer, recommend or connect a little over three hundred (300) combined; exhibitors, construction companies, professionals, contractors, building material/equipment suppliers real estate developers etc to top building projects, contracts and jobs in Ghana and across the African continent. This figure excludes businesses, projects, contracts or jobs individuals got through personal networking at the Summit. ACEACRS is by far the singular and most impactful built environment Summit in Africa. Among the participants recorded for the 2024 edition particular, a little over five hundred (500) in-person participants from Nigeria, Uganda and the United States of America (USA), with majority from the host country Ghana. Some of the high profile in-person participants from the African Continent were the keynote speaker Madam Engr. Margaret Aina Oguntala, FNSE, President, Nigerian Society of Engineers (NSE), Engr. Olu Ogunduyile FNSE Vice President, Council for the Regulation of Engineering in Nigeria (COREN), Engr Dr. Mudasiru Bola J. (Principal Partner, Prolarank
02Jun’25
HOW FOREIGN DIRECT REAL ESTATE INVESTMENT IS SHAPING GHANA’S PROPERTY MARKET: A COMPREHENSIVE REVIEW OF THE PROS, THE CONS AND
HOW FOREIGN DIRECT REAL ESTATE INVESTMENT IS SHAPING GHANA’S PROPERTY MARKET: A COMPREHENSIVE REVIEW OF THE PROS AND CONS Ghana’s real estate sector has emerged as a beacon of opportunity for foreign investors, driven by the nation’s political stability, economic growth, rapid urbanization and the legal framework that allows foreigners to own properties through leasehold agreements. This has made the investment climate conducive for foreign direct participation. The market has witnessed a significant uptick in foreign investment transforming the urban landscape in the past decades. This uptick trajectory also underscores the growing confidence of international investors in Ghana’s property market. The objective of this article is to give an overview of the foreign direct real estate investment in Ghana, the pros, the cons and to offer recommendations for mutual growth. To begin with, let me start with a few statistics of these FDIs in the Ghanaian real estate market. The purpose is to enable you appreciate the extent of this foreign direct real estate investment and how this is shaping the Ghanaian real estate landscape. Foreign-Invested Real Estate Projects in Accra As stated earlier, it is important for us to have the statistics of these foreign direct real estate investments in the Ghanaian market. This will help us understand the reality and the degree of influence they have in the market. This analogy is done using some selected foreign direct real estate projects in only prime locations in Accra compared to local content participation. In fact, it is a basic fact that Accra, the capital city, has been the focal point of several high-profile real estate developments funded by foreign investors. Here are a few of these projects: The Alto, 27-floor, Azure, 17-floor and the Aqua, 10-floor high-rise properties all located in the Airport Residential area developed by Trassaco Estate Development Company Ltd. The Octagon at Tudu, Accra, a 10-floor mixed-use development developed by Dream Reality Company Ltd. The Mirage, Airport residential, 16-floor high-rise property, developed by the Yagmur Group, the Iris Boutique Apartments, 10-floor property developed by H&F Realty Ltd, The Gallery, Loxwood, 9 and 11 floors respectively as well as the Lenox located at Shiashe, East Legon, The Steps, 37-floors, located at Accra Business District etc, all developed by Clifton Homes. The Atlantic Tower, 15-floors, located at Airport, is developed by Wahhab Estate Co. Ltd, a member of the Meridian Group. The Solaris, a 13-floor luxury apartment building located at Osu, developed by Swami India Developers. The AVA Residence, 12-floor located at Airport Residential developed by Cornerstone Developers, the Tribute at Airport Residential, developed by Denya Developers. The Harmonia Residence, 17-floor, AGORA 21-floor, and Lagato, 20-floors all developed by Vaal Real Estate Ghana. The Prestige, a 14-floor mix-use luxury apartment project still under construction, adjacent Airport Shell Filling Station developed by i2 Development, the Apex Suits, 8-floor building, the Equator, a 12-floor building, the Zion House, a 4-floor commercial property all developed by Bot Properties. The rest are the Kass Tower, a 17-floor mix-use property developed by one Mr. Kadir Yadigr a foreign investor, etc. In fact, time and space will fail us to list all the luxury high-rise properties in prime locations in Accra developed by foreign direct investors in the Ghanaian Real Estate sector. Mention is not yet made about luxury residential town homes and other high-level commercial properties such as hotel facilities, shopping malls etc. Now, comparing the above to our local content participation within the same space, it is obvious that, there is virtually no local Ghanaian investment that can really match this. The few we can count will be the Heritage Tower, a 16-floor property at Ridge, developed by the Social Security and National Insurance Trust (SSNIT). The Signature Apartments, Selton Skpe, which is still under construction, both by CapeMay properties, the Oasis Residence and Belmonte developed by CPL Developers and the few developments by Quao Realty, Goldkeys and Mobus properties etc. Also, in the area of commercial space and hospitality real estate such as the hotels and Malls, Movenpick Ambassador Hotel, the Kempinski Gold Coast Hotel, the Marriott Hotel, the Accra Mall, Achimota Mall, West Hill Mall, Atlantic Mall, Marina Mall etc are all foreign investor developments. Taking the above into consideration, one will not be far from right to conclude that local participation in this class of real estate investment in Ghana is virtually non-existent. Positive Impact of Foreign Direct Real Estate Investment The infusion of foreign capital into Ghana’s property market has yielded several positive outcomes even though there is the concern of low local participation. It has led to massive infrastructure development, job creation, knowledge and technology transfer, economic diversification, capital inflow, urban renewal and revitalization et cetera. We shall treat each briefly citing a few practical projects. Infrastructure Development These foreign investors have introduced cutting-edge architectural designs, building technology, and international construction standards leading to the construction of modern infrastructure, including roads, utilities and public amenities, enhancing the overall urban environment. This is demonstrated in our case in drone ariel shots taken from selected locations such as the Airport Residential Area, Roman Ridge, North Ridge, Shiashie, Cantonment and Labone. In fact, those in the Ghanaian real estate sector for long would testify that indeed, there has been a significant foreign building infrastructure improvement in the aforementioned locations compared to same a few decades ago. Job Creation Real estate projects generate employment opportunities in construction, property management, building material/equipment inputs sector and other related services. Employment within the sector has gone up considerably to the extent that labor has to be imported from our neighboring countries particularly, Togo, Nigeria and Benin et cetera to bridge the construction sector labor deficit that has been the case in Ghana for some time now. Technology Transfer Foreign participation has indeed introduced advanced construction techniques and management practices, elevating industry standards. This has given local professionals exposure to international best practices, enhancing skills and industry standards. This has really had a significant impact on the way we design, with local development
22May’25
SMART TIPS TO CONSIDER PRIOR TO BUYING YOUR LAND OR DREAM HOME IN GHANA: GUIDE TO FIRT-TIME BUYERS, DEVELOPERS AND INVESTORS
SMART TIPS TO CONSIDER PRIOR TO BUYING YOUR LAND OR DREAM HOME IN GHANA: GUIDE TO FIRST-TIME BUYERS, DEVELOPERS AND INVESTORS In my field of work as an industry thought leader in Ghana’s real estate and construction industry, I have had several personal encounters with first-time land and home buyers and there is always one thing common among them. Their priority and curiosity have always been on the property title. Interestingly, many have been stereotyped to think that title verification must be the first checklist item to watch out for, but that is really not the case. This remark is however not to suggest that the title verification is not relevant but the point I am trying to make here is this, there are equally other important preliminary information that must precede site inspection and the title verification exercise and that should be the basis for one’s decision to acquire a property at a given location in the first place. Regrettably however, many prospective buyers do not know anything about this preliminary information, and the few that are aware of this tend to overlook it. In fact, it is disappointing to say here that, many of the real estate sector players I have personally dealt with over the years do not also know about these smart tips themselves and how they influence client’s buying decisions. What many do is acquire lands to develop or sell to prospective buyers who do not understand the implications of these smart tips on their property investments. Hence, many real estate sector players have succeeded consciously or unconsciously in misleading the general public into making property investment decisions that later turned out to be very disappointing. This is not gut feelings, I had the opportunity to interview quite a number of diaspora property buyers who were lured into acquiring properties in some parts of Tema Community 25 and later had to dispose them off to relocate because they later discovered that they could not sink wells nor drill mechanized boreholes to bridge the water supply gap from Ghana Water Company which was later known to be a perennial problem. This is because underground water around the Tema Community 25, Community 26, Prampram through to Ada is known to have high sodium chloride (salt) concentration, leaving many residents on this stretch in constant acute shortage of potable water supply. The reality is that, they fell victims because they did not have the requisite information to make informed decisions. As a result of the profit motive, central to many land or property dealers, certain information relevant to support buyer decision making are most often withheld, leading many into making regrettable investment decisions. Therefore, the purpose of today’s article is to shed light on the importance of having these tips we are going to discuss in this article as your guiding checklist to support the decision making process in acquiring that dream home or property of yours. The objective is to correct these systemic anomalies by bridging the information gap through industry focused articles such as this to save the masses from putting their hard earned resources into bad property investments. But before we go into the nitty-gritty of these tips, let me set the tone for this discussion by defining the scope which shall cover geographical, environmental and legal factors that embodies what we termed as the smart tips relevant to your property investment decision making. Now, without any specific order, we are going to run you through these fundamental smart tips which includes but not limited the following; land topography, soil and geology, hydrology, weather conditions, natural hazards, ecology, pollution etc. Let us have a brief look at each, citing practical examples and their relevance to real estate developers, investors and first-time buyers alike. Smart Tip 1: Check Land topography This focuses on the study of the land’s shape, slope and elevations. It could be valleys, mountainous, plain, plateaus, hilly etc. The topography of the land has a significant impact on the cost of building. A typically flat and leveled land with rocky top and subsoil will mean somewhat less cost on the building foundation. Contrary to this, a low-lying topography or waterlogged land is most likely to increase the building foundation cost because one will have to stabilize the ground first, raise the foundation up, fill it in order to enhance the soil’s load bearing capacity and also mitigate the impact of future flooding et cetera. Citing a few examples, on a flat plain leveled land, depending on the soil nature, one does not have to spend so much on the building foundation compared low a lying and waterlog areas such as Kasoa or a mountainous area such as McCathy Hills etc. Building at the mountain base at Aburi may require cutting the land deep down in order to get the requisite levels to put up the building foundation. It is therefore important for the prospective investor to beware of these and their implications on the investment before making any buying decisions. Smart Tip 2: Check Soil type This looks at the soil composition, its stability, drainage or water retention properties, load bearing capacity and the potential for erosion etc. Soil type could be rocky, loamy, sandy or clayed. This helps one to estimate the load bearing capacity of the soil, water retention capacity et cetera even before a substantive geotechnical test is conducted. Besides, the mineral composition of the soil is also very crucial in this process; it could be saline, acidic, sulfate etc. This will inform design considerations, give a fair idea of the foundation type to use, the choice of building materials etc. Clayed soil will definitely pose load bearing capacity challenge and may require raft foundation or any foundation that may be recommended by the structural engineer. Therefore, those who have interests in acquiring or developing properties in some parts of Oyibi, Adenta Frafraha, Amrahia, Amasaman, Pokuase, Kasoa etc that are known to have high clay deposits and
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