Real Estate In Ghana

Are you considering buying or renting a property in Ghana? 

Do you want to invest in Ghanain real estate? 

Then you need all the information you can get. 

In the last decade, the Ghanaian economy has become one of the fastest-growing economies in Sub-Saharan Africa, and much of this growth is credited to the real estate industry of Ghana. In the last three years before the pandemic, the Ghanaian real estate industry contributed large percentages to the GDP because of the increase in the supply of real estate assets and the volume of transactions engaged by non-resident Ghanaians. 

Due to the health scare caused by the pandemic, foreign investors and non-residents transactions in real estate declined. Even with the decline in the real estate market of Ghana, the profit yield from a real estate investment is fair, about 8% – 11% in areas with a high concentration of transactions such as Accra and Kumasi.  

This article will cover key points on real estate in Ghana, the prime areas, the process of owning a house in Ghana, and what you need to know before buying or renting a house in Ghana.

Prime Real Estate Locations

Accra, the capital city of Ghana, is the country’s economic and political centre. As expected, it is a prime area for real estate investments. However, apart from this focal point, you can also earn decent returns on your real estate investments in other locations. Buying or renting a house? These are the top 3 locations you should consider.

Accra Metropolis District

Accra metropolis district is the capital of Ghana and the centre of commerce, industries, politics, and administration. At least 70% of manufacturing facilities in the region are located in this district. Its historical landmark is the former presidential residence and cultural centres like the National Museum, the Ghana Academy of Arts and Sciences, and the Accra Centre for National Culture. In the past, the Accra metropolis district was subject to colonial urbanization until recently real estate investments and the growing population in the district increased the need for post-colonial urbanization.

The road network of Accra district is smooth and paved while its transport system consists of metro buses and taxis. Like most other capital cities, the Accra district is congested, and the housing price is high.

Osu

Osu can be described as a city that never sleeps. It is as active in the night as it is in the daytime. It is a commercial centre popular for the variety of foods and restaurants available. Home to some Western and Chinese restaurants, local cuisines, seafood, and cornmeal dishes are cooked fresh on the spot. Osu has always been regarded as a classy suburban area, and even now with the modern urbanization, it still holds that pedigree.

The historical Osu castle or Christianborg castle is located on the main road along with some schools, churches, supermarkets, and embassies. The range of housing types starts from early 20th-century apartments to detached low-rise buildings and newer buildings. The busy city is cool with a natural aura thanks to the vegetation and sea breeze.

Airport Area

It is a sparsely populated residential area near the Kotoka international airport. It is an upscale area, housing wealthy locals and foreigners, including some international embassies and major offices. In the early days of real estate investments, the Airport area served as a reflection of the huge amount of money that was being invested in real estate by both the locals and foreigners. The proximity to the Kotoka international airport is a good reason that the area was regarded as a high-brow region in Ghana.

The Airport area is serene with many trees and vegetation, creating a natural and cool environment. It is one of the high-end areas in Ghana, and commodities are often overpriced compared to other areas. Schools and shops are included in the community build-up, and the housing comprises refurbished apartment blocks that are remnants of the colonial era.

The road network is neat and lined with trees like a boulevard, while the transport system is private owned cars and the public transport in the area are minibuses that go into town.

The Home Buying Process In Ghana

Real estate is one of the oldest and most lucrative investments out there. In Ghana, and Africa as a whole,  there are no restrictions on who can buy a house; foreigners and citizens can purchase properties once they are financially capable of bearing the costs. However, just like any other investment, there are risks, though these risks can be avoided or minimized with the right actions. The section of this article will take you through the property purchase process and the precautions to take in 5 steps. 

Confirm The Identity And Credibility Of The Seller

The most important step in the property purchase is to confirm the identity and credibility of the property seller to ascertain if you are transacting with the right person. If it is an individual, you can ask for a recognized Identity card to inspect and make copies. On the other hand, if you are dealing with a corporate body, confirm the company’s registration under the laws of Ghana. Furthermore, check into previous property and land transactions that the company or individual has been engaged in. If you find any loopholes or are not satisfied with your investigations, progress with caution.

Confirm The Authenticity Of The Legal Documents Covering The Land

The next step is to confirm that the legal document relevant to the property is in order. Documents like EPA permit, land title certificate, lease agreement, building permit, consent from spouse etc. The remaining lease left on the land the actual size of the land are some other points to note. You can confirm the existence and credibility of these credentials through searches at the land commission, collateral services, asking questions in the neighbourhood, and confirming pending litigation cases related to the property at the court.

Prepare The Contract Of Sale

Once you are satisfied with the outcome of the points covered in steps 1 and 2, you and your legal representative can draw up a contract that covers the terms agreed upon by both parties.

Transfer Of Document Or Assignment

The property transfer document is called a sublease or Assignment. It covers the terms of the contract, including the lease duration. Once this document is signed by all parties involved, it is considered that the property has been legally transferred from the seller to the buyer. All other previous documents on the land should also be transferred to the buyer as they will be needed in the property registration process.

Registration Of Property

The last stage in the process is the registration of the Assignment with the land commission, after which the buyer will be issued a land title certificate.

What You Need To Know Before Buying Or Renting A Property In Ghana

You should have certain vital information before putting down money for a property in Ghana. Some of this information are:

The type of land

In Ghana, there are four types of land; vested land, government land, private/family land, customary/stool land. Each land type has a different process of acquiring it.

Taxes and costs

The following are the basic costs and taxes that are related to property ren or purchase in Ghana:

• Rental income levy: 8% is levied on the gross rent.
• Capita gains tax: 15% capital tax gains.
• Inheritance tax: Inheritance tax is not a thing in Ghana, but there is a 15% gift tax on the transfer of properties.
• Residence tax: 0% -25%.
• Stamp duty: 0.25% – 1% depending on the property value.
• Legal fees: 0% – 10% depending on the property value.

The real estate market in Ghana is set to pick up in 2022, so now is a great time to purchase or rent properties. Take note of the areas, costs, and property purchase process to reduce the risk involved in real estate investments as much as possible. You can also view some properties in Ghana while you do your research.