Residential Real Estate - Ghana

Ghana

The Residential Real Estate market market in Ghana is predicted to achieve a staggering value of US$0.39tn by the year 2024.
This market segment is anticipated to display a steady compound annual growth rate (CAGR 2024-2028) of 4.78%, ultimately leading to a market volume of US$0.47tn by 2028.
When comparing this data on a global scale, it becomes evident that China is projected to generate the highest value in the Real Estate sector, with a staggering US$117.40tn in 2024.
The residential real estate market in Ghana is experiencing a surge in demand due to the country's growing middle class and increased urbanization.

Key regions: Europe, Asia, Australia, United States, Germany

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Analyst Opinion

The Residential Real Estate market in Ghana is experiencing significant growth and development in recent years.

Customer preferences: Customers in Ghana are increasingly seeking modern and well-designed residential properties. They are looking for properties that offer amenities such as swimming pools, gyms, and green spaces. Additionally, there is a growing demand for properties that are located in safe and secure neighborhoods with easy access to schools, hospitals, and shopping centers.

Trends in the market: One of the key trends in the residential real estate market in Ghana is the increasing popularity of gated communities. These communities offer a sense of security and exclusivity, and often come with a range of amenities and services. This trend is driven by the desire for a higher standard of living and a sense of community among residents. Another trend in the market is the rise of mixed-use developments. These developments combine residential, commercial, and retail spaces in one location, creating a convenient and vibrant living environment. This trend is driven by the need for convenience and the desire to live in close proximity to work, shopping, and entertainment options.

Local special circumstances: One of the unique aspects of the residential real estate market in Ghana is the influence of the diaspora. Many Ghanaians living abroad are investing in residential properties in Ghana, either as a way to secure their retirement or as an investment opportunity. This has contributed to the overall growth of the market and has led to the development of high-end properties that cater to the needs and preferences of this group of buyers.

Underlying macroeconomic factors: The growth and development of the residential real estate market in Ghana can be attributed to several underlying macroeconomic factors. One of the key factors is the country's strong economic growth, which has resulted in an expanding middle class with increased purchasing power. This has created a demand for housing and has led to the development of new residential projects. Additionally, the government of Ghana has implemented policies and initiatives to promote affordable housing and increase access to mortgage financing. This has made it easier for individuals and families to purchase residential properties, further driving the growth of the market. Furthermore, Ghana's stable political environment and favorable investment climate have attracted both domestic and foreign investors to the residential real estate market. This influx of investment has led to the development of new projects and has contributed to the overall growth and development of the market. In conclusion, the residential real estate market in Ghana is experiencing significant growth and development, driven by customer preferences for modern and well-designed properties, the rise of gated communities and mixed-use developments, the influence of the diaspora, and underlying macroeconomic factors such as strong economic growth, government policies, and a stable political environment.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.