A recent article on Ghanaweb ‘The insatiable scramble for luxury real estate in Ghana‘ highlighted the impact investment in the economy is having on prices in the Accra property market. Those who have visited Accra in the last few years will be aware that the prices in 4 or 5 star hotels range between $298 and $400 a night, and those looking at more permanent fixtures, such as buying land to build, or purchasing a property will also be aware that this isn’t exactly an affordable option either. Like with most African cities luxury come at a high premium and in Accra the reality of where you would like to live, and where you have to live is defined by the dollar.
Accra is a unique city in that some of the most expensive land and real estate is located 5 minutes from the airport, in most cities people would prefer not to live with close proximity of the cities major airport, however in Accra areas such as Airport Residential have some of the most expensive plots in the city.
Accra is split in to traditional suburbs which are inhabited by ambassadors, government officials, CEO’s and business owners, and newer suburbs which tend to consist of expats or Ghanaian’s in the diaspora, with the only real exception to the trend being Trasacco Valley, a luxury gated community located on Accra’s outskirts, most of the suburbs are within close vicinity of key areas such Osu, The Accra Mall and the new Marina Mall.
- Airport Residential
Newly established suburbs
- East Legon
- East Airport
- Trassaco Valley
And the cost of living in luxury averages around $500,000 in some of theses area for a single plot of land, the prices of new developments such as the Villaggio Vista retail at a similar price. As Peter Atsu Tsikata CEO, Millennium Properties highlighted, it is simply down to the basic economics of supply and demand, investment has seen expats moving into the city for business, and a large number of Ghanaian in the diaspora relocating and theses are very attractive places to live in Accra.
One must also bear in mind that mortgages are relative new in the market place, and the maximum loan provided by financial firms such as the Ghana Home Loans company is currently 300,000 GHS ($156,000), and even if funds are available land in these areas is very difficult to come by. One could consider the rental market however it is common in Ghana to for landlords to request for rents to be paid for 2 years in advance, at $2000 to $4000 a month individuals can be required to provide between $48,000 to $96,000 in upfront fees, creating a rush to invest before people are completely priced out of the market. As one of the safest African countries, with a developing oil industry it is easy to see why people are seeing Accra as a place to invest in.