Accra’s Real Estate Market: Boom or Bust in 2023?

• Urbanization & Affordability

According to World Population Prospects – UN, Accra’s metro area population in 2023 was 2,660,000, up 2.11% from 2022.

With this surge in population, the city swiftly expanded with contemporary infrastructure; nonetheless, many of the majority asked, ‘Who can afford these properties’. If you reside in Accra or have visited the city, you will notice that it is beautifully decked with real estate billboards, most of which display the price.

A mortgage loan may have allowed a middle-class Ghanaian, or someone with an average salary, to acquire those apartments; however, how many were occupied by Ghanaians living at home?

The market was expected to expand, owing to factors such as urbanization; however, many settlers preferred to stay in a single room self-contained or a chamber and hall with a close route to Accra’s busy areas due to the demand and supply curve, which does not favor the average income earner in purchasing properties in prime areas.

• Real Estate Projects & Increased Foreign Investment 

As previously said, the target audience for real estate development in Accra is expats wishing to purchase a property in Accra, as well as investors looking to explore income reform by renting out residential property for investment returns.

With a consistent demand for short-term rental homes in Accra’s key neighborhoods, investment in Accra developments steadily expanded in 2023, with numerous rooms available for short-term rental.

Because of its patronage, owning a short-let property in Accra has a bigger benefit of a study boom in investment returns; hence, investing in short-let properties is a good idea if you want a study growth in your investments returns. 

Despite and increase in real estate development, Ghana’s economy was declining which affected the market. With the country’s high demand for foreign commodities and construction supplies, the cedis’ depreciation against the dollar played a major factor, with things or goods costing more than they did previously.

Utility prices have also risen in recent years as a result of the government’s daily pronouncements regarding water, power, and gas rates, to name a few.

Overall, 2023 appeared to be a year of sustained expansion in Accra real estate, although affordability was becoming a major worry. Is 2024, and with projections in the Ghanaian economy, particularly with the cedis’ dramatic and rapid devaluation against dollar bills, the real estate markets are anticipated to experience an impact, either positively or badly.