Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Ghana

Ghana

In Ghana, the revenue of the Residential Real Estate Leases market market is estimated to reach US$23.95bn in 2024.
House Leases hold the largest market share, with a projected market volume of US$18.24bn in 2024.
Over the period from 2024 to 2028, the revenue is anticipated to exhibit a compound annual growth rate (CAGR) of 10.72%, leading to a market volume of US$35.99bn by 2028.
Ghana's residential real estate lease market is experiencing a surge in demand due to growing urbanization and an increasing middle class population.

Key regions: France, United Kingdom, Australia, Japan, China

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Analyst Opinion

The Residential Real Estate Leases market in Ghana is experiencing steady growth and development due to several factors.

Customer preferences: Ghanaians have a strong preference for renting residential properties rather than buying them. This is mainly driven by the high cost of purchasing a house, which makes it unaffordable for many individuals and families. Renting allows people to have a place to live without the financial burden of a mortgage. Additionally, renting provides flexibility and mobility, which is important in a country where job opportunities and personal circumstances can change frequently.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Ghana is the increasing demand for rental properties in urban areas. As the population grows and urbanization continues, more people are moving to cities in search of better job opportunities and a higher standard of living. This has led to a surge in demand for rental properties, particularly in major cities like Accra and Kumasi. Landlords are capitalizing on this trend by converting their properties into rental units or investing in new residential developments. Another trend in the market is the rise of serviced apartments. These are fully furnished apartments that offer a range of amenities and services, such as housekeeping, laundry, and security. Serviced apartments are popular among expatriates, business travelers, and individuals who value convenience and a hassle-free living experience. This trend is driven by the growing number of foreign companies and organizations operating in Ghana, as well as the increasing number of tourists visiting the country.

Local special circumstances: One of the unique aspects of the Residential Real Estate Leases market in Ghana is the prevalence of informal rental agreements. Many landlords and tenants do not have formal lease agreements in place, relying instead on verbal agreements or simple written contracts. This can lead to issues and disputes, as the rights and responsibilities of both parties may not be clearly defined. However, efforts are being made to encourage the use of formal lease agreements and improve the legal framework for rental properties in the country.

Underlying macroeconomic factors: The growth and development of the Residential Real Estate Leases market in Ghana are influenced by several macroeconomic factors. These include the overall economic growth of the country, which creates employment opportunities and increases disposable income. Additionally, government policies and regulations related to real estate and rental properties play a role in shaping the market. For example, initiatives to promote affordable housing and improve access to finance for homebuyers can impact the demand for rental properties. Finally, the stability of the local currency and inflation rates can affect rental prices and affordability for both landlords and tenants.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.