Ghana’s real estate market is a direct reflection of the state of the West African nation itself in that it is emerging, developing, has immense potential but is constrained by serious fundamental issues related to issues such as poor transparency in property registration title deeds and lack of affordable housing finance. solutions locally.
The best approach that can be taken with Ghana is to line up all the negatives, eliminate them with evidence that the government and other outside bodies and agencies are tackling these issues head-on, and then identify the incredible potential available in Ghana for real estate investors from 2007. …in this way, an investor can determine if 2007 is the year to start their due diligence in Ghana for long-term capital appreciating investment opportunities.
Current Issues Facing the Ghana Real Estate Market
Current problems facing the Ghanaian real estate market include the fact that those who buy land and property for resale often buy litigation rather than title deeds because there is no decent system for registration of title deeds and transfers and because the transfer system lacks transparency.
In addition to this, the level of tourism growth in Ghana is not sufficient for the tourism economy to become an attractive sector for foreign direct investment at this time. In addition, there are problems in major cities with homeless people and even those who want to have their own house and have a decent salary to pay a mortgage loan have limited and restricted access to mortgages in Ghana.
Efforts to improve the real estate market in Ghana
The current government in Ghana inherited the situation as detailed above, but is 100% focused on changing these problems and developing a nation of middle income homeowners. For this they have launched numerous programs and schemes as a program to attract more foreign direct investment. The government is also working in partnership with companies such as the Canada Mortgage and Housing Corporation and Development International Desjardins to develop regulatory reforms in the mortgage market and have brought in US-based Broad Cove Partners Inc, which is a emerging markets and is now developing a new $30 million long-term property financing facility to assist with affordable housing and mortgage financing in Ghana.
In 2007, a new program to register every house on every street in Ghana will be launched to start resolving land title issues, and on the tourism side, the Ghana Tourism Board has been active under the leadership from Interim Executive Director Martin Mireku. So far, Mr. Mireku has brought Delta Airlines and North American Airlines to Ghana with multiple direct flights between Accra (Ghana’s capital) and places like New York every week and there is a strong campaign underway for these airlines and other representatives. of international tourism. in Ghana to promote the attractiveness and potential of the nation to the wider interests of the world.
A real estate investor considering whether Ghana is a viable option for portfolio expansion must understand that the government or outside agencies are addressing all the issues that exist to restrict the attractiveness of the real estate market in Ghana and that this demonstrates their intense commitment to improving its nation, boosting its economy, raising the standard of living of its people, and establishing a sustainable source of foreign direct investment in sectors such as tourism and real estate.
Tourism potential in Ghana
Tourism in Ghana currently contributes up to 8.5% of GDP and employs about 6.9% of the entire nation’s workforce; Going forward, the travel and tourism industry is forecast to grow between 4.9 and 5% per year from 2007, but for the Ghanaian government that is not enough. In a bid to raise the profile of the country, they have brought in international airlines as noted, and as a result have also liberalized their aviation policy and are continuously determined that this sector will drive the economy in a long-term sustainable way.
An investor must understand that when tourism comes to Ghana in earnest, there will be multiple layers of opportunity because it is a nation rich in natural wonders, delights and beauty, from pristine and unspoiled beaches to an interior filled with amazing and exotic wildlife in abundance. and the facilities simply do not exist for international travelers to experience and enjoy such delicacies safely and comfortably.
This represents a great investment opportunity…
local affordable housing
The other area an investor can examine from 2007 is the question of providing affordable housing to Ghanaians. In recent years there has been a trend of rural to urban migration flow and the problem with this flow is that it has been strong and sustained and there is simply not enough housing to accommodate all those who arrive and seek work. As a result, a homeless problem is developing in some of the most densely populated areas of the country and those with real estate assets available for rent have been exploiting those requiring housing, demanding up to 3 years rent in advance.
In an attempt to solve this problem, the government has announced incentives for builders to build affordable local housing starting in 2007, and for the next five years, as part of the National Housing Program, 20,000 new houses will be built annually in Ghana. Naturally enough investment is still required in this sector and those with a social conscience who want to be actively involved in something that will return profits to them while benefiting a nation constrained by poverty should see how they can get involved.
In conclusion, while there are real emerging market issues affecting the real estate market and real estate investment potential in Ghana at the moment, every effort is being made to positively address and resolve these issues. The most important factor to consider, therefore, is that Ghana knows it has potential and is doing everything it can to realize this potential…and an investor looking for massive opportunities, low start-up costs and huge growth potential. in the long run you may well find that 2007 is the year to explore Ghana.
