THE REAL ESTATE INDUSTRY IN GHANA

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Ghana, with its vibrant capital city of Accra, situated in the Western part of Africa, boasts a growing population of approximately 34.67 million, as per Worldometer (worldometer.info). Renowned as the gateway to Africa, Ghana stands as a beacon of peace and political stability, celebrating over six decades of independence. Its warm hospitality and rich cultural heritage attract visitors from far and wide, complemented by a wealth of natural resources and captivating tourist sites.

Real estate emerges as a pivotal priority in the developmental agenda of every nation, addressing the fundamental need for shelter among its citizens. The Ghana Affordable Housing report for 2024 unveils the vast potential within Ghana’s real estate market, estimated between 9 trillion to 13 trillion USD, contributing 7.2% to the GDP. Despite facing economic headwinds, the housing sector continues its upward trajectory, projected to reach an impressive market value of approximately $458.50 billion by 2024, predominantly driven by residential development.

Ghana’s real estate landscape witnesses a burgeoning demand for affordable housing, propelled by rapid population growth and urbanization. Presently, the housing deficit stands at a staggering 1.8 million units, with an annual production of about 40,000 households. This glaring disparity unveils a significant investment avenue, attracting stakeholders keen on leveraging opportunities as the government endeavors to bridge this gap over the next decade.

However, the real estate sector grapples with a myriad of challenges, both external and internal. External factors, notably forex fluctuations, including the Cedi to US dollar exchange rate and global market prices of imported building materials, escalate production costs, rendering housing unaffordable for the average Ghanaian.

Internally, inadequate infrastructure, particularly in suburban and rural areas, poses a significant hurdle. Issues such as deficient road networks, limited access to water and electricity, alongside high mortgage interest rates, absence of dedicated housing funds, and regulatory ambiguities, compound the industry’s challenges.

Despite these hurdles, Ghana’s real estate sector remains an enticing venture for discerning companies and investors adept at navigating risks. With prudent risk management strategies, stakeholders can harness the vast potential within Ghana’s real estate landscape, contributing to its growth and development in the years to come.

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