How Real Estate Works in Ghana
The real estate sector in Ghana has grown significantly over the past two decades, driven by urbanization, a growing middle class, and increased investment interest from both Ghanaians and foreigners. From residential homes and commercial properties to land acquisition and real estate investment trusts (REITs), understanding how real estate works in Ghana is essential for anyone looking to buy, sell, lease, or invest in property in the country. Ghana's real estate market is broadly categorized into:
Land Acquisition: Involves the purchase or lease of undeveloped land for future development or resale.
Residential Real Estate: Comprises single-family homes, apartments, townhouses, and gated communities.
Commercial Real Estate: Includes office buildings, shopping malls, warehouses, and hotels.
Industrial Real Estate: Involves factories, plants, and other production facilities.
There are also informal and formal sectors. The formal sector includes licensed developers and agencies, while the informal sector comprises private individuals selling or leasing property without regulatory oversight.
Land Acquisition in Ghana
Land ownership in Ghana is a complex issue and often the most challenging part of any real estate transaction. Land is classified into four categories:
Public Land: Owned and managed by the government.
Stool/Skin Land: Owned by traditional authorities (chiefs or stools) and managed according to customary law.
Family Land: Belongs to extended families and can only be sold or leased with family consent.
Private Land: Owned by individuals or corporate entities.
Most land in Ghana is stool or family owned. As such, prospective buyers must conduct thorough due diligence, including verifying ownership, checking for existing encumbrances, and ensuring that the sale is consented to by all rightful stakeholders.
The Land Acquisition Process
To acquire land in Ghana, the following steps are generally followed:
Search and Inspection: Buyers search for available land through real estate agents, developers, or listings. Physical inspection is advised.
Due Diligence (Title Search): Carry out a land title search at the Lands Commission to confirm ownership and ensure that the property is free from disputes or any encumbrances.
Agreement and Negotiation: Both parties agree on price, payment terms, and any conditions.
Sale and Purchase Agreement: A formal agreement is drafted and signed.
Payment and Documentation: Payment is made and the necessary documents (indenture or lease agreement) are handed over.
Registration: The buyer must register the property at the Lands Commission to obtain legal title.
Leasehold vs. Freehold
Foreigners are generally not allowed to own freehold land in Ghana. Instead, they can acquire leasehold interest—typically up to 50 years, renewable. Ghanaians, on the other hand, can acquire both leasehold and freehold, although freehold is increasingly rare due to land reform policies.
At Boja Properties, we eliminate all the stress and hassle associated with land purchase since all our lands are owned by us and titled. We also have the expertise to help you purchase and register land for your own project.
Residential Real Estate
Owing to an increasing demand for housing, the residential property market is expanding and diversifying. Residential properties in Ghana generally fall into the following categories:
Single-Family Homes: Detached or semi-detached houses in suburban or peri-urban areas.
Apartments/Flats: Increasingly popular in urban areas, especially for young professionals.
Townhouses: Typically found in gated communities, offering a balance of space and security.
Gated Communities: These are planned neighborhoods developed by real estate companies with shared amenities like security, roads, and recreational spaces.
Compound Houses: Traditional multi-family homes where multiple tenants or families share a single compound; common in low- to middle-income areas.
Some of the most notable residential zones include:
Accra: East Legon, Cantonments, Airport Residential Area, Westlands, Spintex, and Tema.
Kumasi: Ahodwo, Danyame, and Kwadaso.
Takoradi: Anaji, Chapel Hill, and Beach Road.
Emerging suburbs: Areas like Oyarifa, Pokuase, Amasaman and Prampram are growing rapidly due to lower land costs and new infrastructure.
Residential property prices in Ghana vary greatly depending on location, property type, and amenities. As of 2024 estimates:
Luxury Houses: 300,000 - $1,000,000+
High-end apartments: $100,000- $500,000+
Middle-income homes: $40,000 - $100,000
Affordable housing units: $10,000 - $30,000 (though in limited supply)
Rental prices: $300 - $2,500+ per month in major cities, higher in expat-friendly zones
Commercial Real Estate
As Ghana continues to develop its business environment and attract both local and international investment, commercial real estate plays a critical role in supporting sectors such as finance, retail, and tourism. Commercial real estate in Ghana include:
Office Buildings: Corporate headquarters, business parks, co-working spaces
Retail Spaces: Shopping malls, standalone shops, supermarkets, markets
Hospitality: Hotels, guesthouses, serviced apartments
Industrial/Warehouse: Factories, logistics hubs, cold storage facilities
Mixed-Use Developments: Complexes combining residential, office, and retail space
Key Commercial Real Estate Hubs in Ghana include:
Accra (Capital City): Commercial Business District (CBD), Airport City, East Legon, Dzorwulu, and Spintex: Emerging areas for office and retail expansion.
Kumasi: A growing market with expanding retail and logistics needs. Major developments include Kejetia Market and hotel investments.
Takoradi & Tema: Key locations for industrial and logistics real estate due to port access and oil & gas activities.
Market trends that are spurring the development of commercial real estate in Ghana include:
Growth in Grade A Office Spaces: Modern office buildings with facilities like backup power, internet, and parking are in demand, especially in Accra.
Retail Expansion: Shopping malls like Accra Mall, West Hills Mall, and Kumasi City Mall are popular but facing increased competition from e-commerce.
Rise of Co-working Spaces: Driven by startups and remote workers.
Industrial Growth: Boosted by Ghana’s industrialization policies (e.g., “One District, One Factory” initiative).
Commercial real estate in Ghana is fast becoming an attractive investment with opportunities in the following areas:
Office Development: Especially outside central Accra where prices are more favorable.
Logistics and Warehousing: An underserved market, especially near ports and trade corridors.
Hospitality: Mid-range and business hotels are in growing demand.
Retail Centers in Secondary Cities: Kumasi, Tamale, and Takoradi show potential.
Industrial Real Estate
In Ghana, industrial real estate includes:
Warehouses and Storage Facilities
Manufacturing Plants and Factories
Industrial Parks and Zones
Logistics Hubs and Distribution Centers
Cold Storage Facilities (especially for agriculture and pharmaceuticals)
Key industrial zones and locations in Ghana include:
Ashaiman and Spintex (Greater Accra): These areas are expanding industrial corridors due to accessibility and relatively lower land prices.
Takoradi and Sekondi: Industrial zones supporting oil and gas, shipping, and mining industries.
Kumasi Industrial Areas: Central Ghana's growing industrial base, especially in agro-processing and logistics.
Market trends in the industrial real estate in Ghana include:
Build-to-Suit Developments: Increasing demand for customized warehouses and factories by companies.
Rising Demand for Cold Storage: Especially in food processing and pharmaceuticals.
Modern Logistics Parks: Developers are exploring large-scale logistics hubs near ports and highways.
Public-Private Partnerships (PPPs): For the development of industrial parks and infrastructure.
Investors in Ghana’s industrial real estate can explore:
Warehousing and distribution centers for FMCGs and e-commerce companies
Manufacturing facilities for agro-processing, textiles, construction materials, and pharmaceuticals
Industrial parks near ports or transportation corridors
Rehabilitation of old industrial estates into modern facilities
Facilities for clean and renewable energy production
Real Estate Agents and Developers
The real estate market in Ghana is served by both licensed agents and unregulated intermediaries. The Ghana Real Estate Developers Association (GREDA) is the main body representing formal developers. It's advisable to work with registered agents or companies to minimize fraud risk.
Financing Options
Financing a property purchase in Ghana can be done through:
Outright cash payments
Mortgage loans from banks or mortgage companies
Developer installment plans
Mortgage uptake in Ghana remains low due to high interest rates and stringent qualification criteria. However, some banks and housing schemes are working to make housing finance more accessible.
Challenges In the Ghana Real Estate Sector
Financing a property purchase in Ghana can be done through:
Outright cash payments
Mortgage loans from banks or mortgage companies
Developer installment plans
Mortgage uptake in Ghana remains low due to high interest rates and stringent qualification criteria. However, some banks and housing schemes are working to make housing finance more accessible.
Legal and Regulatory Framework
Key institutions and laws governing real estate in Ghana include:
Lands Commission
Office of the Administrator of Stool Lands
Land Act, 2020 (Act 1036)
Rent Control Department
Engaging a lawyer during real estate transactions is highly recommended to ensure compliance with all legal requirements.
