Investing in real estate in Ghana’s growing economy and increasing middle class, the demand for residential, commercial, agricultural and industrial properties is on the rise.
Marshall Field once said, “Buying real estate is not the only the best way, the quickest way, the safest way, but the only way to become wealthy”.
This blog explores the various ways to invest in real estate in Ghana:
1. Investing In Lands
Buying parcels of land in Ghana is one of the easiest means to become a real estate investor. Investors must approach investing in lands with a long- or medium-term benefits mindset. Land Banking (Buying and holding land for future resale), buying farmlands and investing in commercial-zoned lands are great options because of the perfect appreciation of land in the Ghanaian market. But buying land can be a distasteful experience due to the increasing rate of land guards and various litigation issues, therefore, you must exercise due diligence to avert scams.
2. Rental Properties
One of the proven and common ways to invest in real estate in Ghana is investing in rental properties. This can either be building a property for rent or buying a property to rent for rental income. Due to the housing deficit of the state and the influx of ex-pats, rental properties in major cities are a cash cow investment venture. It noted that the rental yield in Ghana hovers around 10%, making it a very attractive venture. In the rental business, location and property type are critical, you need to research to have properties in a suitable location and the specification tenants desire.
3. Commercial Properties
Business-oriented properties such as office buildings, shopping spaces, and warehouses also provide a reliable source of income for investors. There is a high demand for commercial properties especially in industrial areas and central business locations in Ghana due to the growing business economy.
It is good to note commercial properties are capital-intensive ventures and need a higher level of expertise than investing in residential properties. Investors must seek professional advice to eliminate failures.
4. Property Flipping
This type of investment is most common in the Western world, where people buy old or abandoned properties, renovate them to the modern standard and sell them at higher prices to make a profit. It is a high-risk investment strategy, but very lucrative if done properly through research and market analysis.
5. Real Estate Investment Trusts (REITs)
This type of real estate investment is now becoming known in Ghana but is it one of the hassle-free types of real estate investment options. It is an investment fund that owns and operates income-generating real estate properties. Investors buy shares in the fund and receive a percentage of the rental income generated from the properties. There are fund managers with technical and industry knowledge to make great decisions that will make the fund generate profit, investors do not participate in running the organization.
Investing in real estate in Ghana is an excellent means to diversify your investment portfolio. Whether you are looking to in a parcel of land, building for residential and commercial rentals, flipping or the other, these options are good for you to select from. However, seek professional assistance to invest right in Ghana.
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