Ghana’s property market is a direct reflection of the state of the West African nation itself in that it is emerging, developing, has immense potential but is constrained by serious fundamental issues related to issues such as poor transparency in property registration. property deeds and a lack of affordable housing finance. solutions locally.
The best approach to take with Ghana is to line up all the negatives, weed them out with evidence that the government and other external bodies and agencies are tackling these issues head on, and then identify the incredible potential available in Ghana for property investors from of 2007. …in this way, an investor can determine if 2007 is the year to begin their due diligence in Ghana for long-term capital appreciating investment opportunities.
Current Issues Facing the Ghana Real Estate Market
Current problems facing the Ghana property market include the fact that those buying land and property for resale often buy litigation rather than title deeds because there is no decent system for land title registration and transfers and because the transfer system lacks transparency.
In addition to this, the level of tourism growth in Ghana is not enough for the tourism economy to become an attractive sector for foreign direct investment at the moment. Also, there are problems in major cities with homelessness and even those who want to have their own house and have a decent wage to pay off a home loan have limited and restricted access to mortgages in Ghana.
Efforts to improve the property market in Ghana
The current government in Ghana inherited the situation as detailed above but is 100% focused on changing these issues and developing a nation of middle income homeowners. For this they have launched numerous programs and schemes as a program to attract more foreign direct investment. The government is also working in partnership with companies such as Canada Mortgage and Housing Corporation and Development International Desjardins to develop regulatory reforms in the mortgage market and have brought in US-based Broad Cove Partners Inc, which is a financial advisory firm from emerging markets and is now developing a new $30 million long-term property finance facility to help with affordable housing and mortgage financing in Ghana.
In 2007, a new program to register all houses on all streets in Ghana will be launched to start resolving land title issues and on the tourism side, the Ghana Tourism Board has been active under the direction of interim CEO Martin Mireku. So far, Mr. Mireku has flown Delta Airlines and North American Airlines to Ghana with multiple direct flights between Accra (Ghana’s capital) and places like New York every week and there is a strong campaign underway for these airlines and other representatives of international tourism. in Ghana to promote the nation’s attractiveness and potential to the broader interests of the world.
A property investor considering whether Ghana is a viable option for portfolio expansion should understand that all the issues that exist to restrict the attractiveness of the property market in Ghana are being addressed by the government or external agencies and that this demonstrates their intense commitment to improving their nation, boosting their economy, raising the standard of living for their people, and establishing a sustainable source of foreign direct investment in sectors such as tourism and real estate.
The tourism potential in Ghana
Tourism in Ghana currently contributes up to 8.5% of GDP and employs about 6.9% of the entire nation’s labor force; Going forward, the travel and tourism sector is forecast to grow by 4.9-5% per year from 2007, but for the Ghanaian government that is not enough. In an attempt to raise the profile of the country, they have brought in international airlines as indicated, and as a result have also liberalized their aviation policy and are continuously determined that this sector will sustainably boost the economy in the long term.
An investor should understand that when tourism comes to Ghana in earnest, there will be multiple layers of opportunities because it is a nation rich in natural wonders, delights and beauty, from pristine and unspoiled beaches to a hinterland filled with exotic and amazing wildlife in abundance. and the facilities simply do not exist for international travelers to experience and enjoy such delights safely and comfortably.
This represents a great investment opportunity…
local affordable housing
The other area that an investor can look at as of 2007 is the issue of providing affordable housing for Ghanaians. In recent years there has been a trend of rural to urban migration flow and the problem with this flow is that it has been strong and sustained and there simply is not enough housing to accommodate all those who arrive and look for work. As a result, a homelessness problem is developing in some of the most densely populated areas of the country and those with real estate assets available for rent have been exploiting those who require housing and require up to 3 years rent in advance.
In an attempt to solve this problem, the government has announced incentives for builders to build affordable local housing from 2007, and over the next five years, as part of the National Housing Program, 20,000 new homes will be built annually in Ghana. Naturally enough investment is still required in this sector and those with a social conscience who want to be actively involved in something that returns profit while benefiting a poverty constrained nation should see how they can get involved.
In conclusion, while there are real emerging market issues affecting the property market and real estate investment potential in Ghana at the moment, every effort is being made to address and resolve these issues in a positive manner. The most important factor to consider, therefore, is that Ghana knows it has potential and is doing everything it can to achieve this potential…and an investor looking for massive opportunities, low start-up costs and huge growth potential. in the long run you might well find 2007 to be the year to explore Ghana.