Residential Real Estate Leases - Ghana

In Ghana, the revenue of the Residential Real Estate Leases market market is estimated to reach US$56.84bn in 2024.
House Leases hold the largest market share, with a projected market volume of US$43.28bn in 2024.
Over the period from 2024 to 2029, the revenue is anticipated to exhibit a compound annual growth rate (CAGR) of 8.78%, leading to a market volume of US$86.58bn by 2029.
Ghana's residential real estate lease market is experiencing a surge in demand due to growing urbanization and an increasing middle class population.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Ghana

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Ghana

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts