In recent years, Ghana has become one of Africa’s fastest-growing destinations for tourism, business, and leisure travel, and with that comes an exciting opportunity for real estate investors to tap into the lucrative short-let and Airbnb market. But with all the noise around Airbnb, how do you choose the right property that delivers a great guest experience and secures a profitable return on investment (ROI)? Whether you are an investor in the diaspora looking to make your mark back home or a foreigner interested in Ghana’s growing real estate scene, selecting the right property is critical to your success.
Here’s how to ensure you make the smartest investment.
1. Location, Location, Location
The golden rule of real estate holds even more weight when it comes to Airbnb and short-let investments. You need to choose a location that not only appeals to tourists but also caters to business travellers, expats, and locals seeking temporary stays. Areas like Accra, Kumasi, and the increasingly popular Ho are excellent options. In Accra, neighbourhoods like Osu, East Legon, and Airport Residential Area are hotbeds of demand due to their proximity to the city’s nightlife, shopping districts, and business hubs.
When selecting a location, consider how close it is to essential amenities—restaurants, tourist attractions, transport hubs, and hospitals. The easier it is for your guests to get around, the higher the demand for your property will be. Also, keep an eye on upcoming infrastructure projects or government development plans. This will ensure your investment appreciates over time.
2. Understand the Local Market and Competition
Before jumping into any investment, take time to understand the local Airbnb market. Analyse how much hosts in similar areas are charging per night, their occupancy rates, and the types of properties that are performing well. For instance, in Ghana, you will notice that luxury apartments, serviced apartments, and stand-alone houses in secure communities tend to attract high-end travellers and longer bookings.
Also, be aware of any market regulations. While Ghana’s Airbnb scene is booming, it’s important to stay updated on local laws or policies that could affect short-let leases. Some cities in other parts of the world have imposed restrictions on short-term rentals, and it’s always better to be proactive in understanding any potential changes.
3. Property Type: What Works Best for Airbnb?
The type of property you invest in can make or break your Airbnb venture. Some of the most popular options for short-let investments include:
– Apartments: Single-bedroom or multi-bedroom apartments are in high demand, especially in bustling cities like Accra and Kumasi. Many business travellers or couples visiting for short stays prefer the privacy and convenience of an apartment.
– Villas or Houses: If you are targeting families or groups, then a stand-alone house or villa is ideal. Properties with private pools or expansive gardens also tend to attract higher nightly rates.
– Unique Stays: Want to stand out in the crowd? Properties with a unique twist—like those offering traditional Ghanaian architecture or eco-friendly designs—are becoming highly sought after by tourists looking for an authentic local experience.
Keep in mind that a property’s condition is crucial. Newly renovated or modern buildings with up-to-date furnishings, reliable utilities, and smart security systems are more likely to receive better reviews and consistent bookings.
4. Calculate the Costs and Returns
Before purchasing any property, conduct a thorough cost analysis to determine your potential returns. You’ll need to account for:
– Upfront Costs: Purchase price, renovation, furnishing, and any legal fees.
– Ongoing Costs: Maintenance, cleaning services, utilities, internet, property management fees, and taxes.
In Ghana, Airbnb hosts can earn significant returns, with luxury properties in prime locations earning up to $100-$200 per night. But to maintain high occupancy rates, you will need to balance your pricing strategy against your competition, keeping your nightly rates competitive yet profitable.
Pro Tip: Always budget for seasons of low occupancy. A smart investor will factor in a buffer for unexpected vacancies or quieter seasons like the rainy months when travel slows down.
5. Hire a Reliable Property Manager
Managing an Airbnb from abroad, or even while running other ventures, can be overwhelming. To ensure your property is in top shape and your guests have an excellent experience, hiring a professional property manager is crucial. Property managers in Ghana typically handle everything from guest check-ins, cleaning, and maintenance to responding to guest inquiries—ensuring you maintain a high rating on platforms like Airbnb.
6. Guest Experience is Everything
In the Airbnb world, guest experience drives revenue. Your property’s reviews and ratings can either make or break your business. To stand out, make sure your property offers:
– Comfort: High-quality linens, air conditioning, and amenities like a fully equipped kitchen or high-speed Wi-Fi can make all the difference.
– Style: An aesthetically pleasing property—whether it is a modern apartment or a tastefully decorated traditional home—captures guests’ attention and leads to better reviews.
– Safety: Security is paramount. Ensure your property is in a secure neighbourhood, and install modern security systems like cameras, smart locks, and alarm systems.
Final Thoughts
Airbnb and short-let investments in Ghana are an incredible opportunity for real estate investors seeking solid returns and long-term growth. By selecting the right location, and property type, and ensuring that all the finer details are in place, you can unlock the full potential of this booming market.
Looking for personalised advice on how to get started or which property to choose? I offer consultation services to guide you every step of the way—from property selection to management. Contact Dwell Chronicles via info@dwellchronicles.com or +233204700023(WHATSAPP ONLY) today, and let’s turn your real estate dreams into a profitable reality!
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