Best Areas In Accra To Invest In Real Estate As A Foreigner

Is Ghana a good place to invest in real estate? When it comes to property investment in Ghana, chances are, if you’re a local investor, you’ll already have an excellent idea of where the best areas to invest in Ghana are. However, foreign investors seeking to invest in the Ghanaian property market may find it challenging to identify the most lucrative Neighbourhoods.

To complicate matters, what may be a golden investment area in Accra for one investor might not be so good for another. After all, it all depends on your investment purpose. The question you should always ask yourself is whether you are after a lucrative rental yield or you would rather go for a hefty capital growth.

Knowing which investment area works best for which goal is crucial when deciding where to buy property in Ghana as an overseas investor. Lucky for you, foreign investors, this comprehensive article breaks down the best areas to invest in Ghana. But let's first understand the concept surrounding land or property purchase by foreigners in Ghana.

Can Foreigners Purchase Real Estate In Ghana?

Who can buy property/land in Ghana? There are no serious restrictions on foreigners buying property in Ghana. However, there are different types of land, of which some cannot be privately owned. The good news is that foreigners can establish a company in Ghana and purchase property through the company. The caveat is that foreigners cannot directly purchase freehold land and property in Ghana due to constitutional limitations established in 1992.

The eligibility criteria for foreigners to buy property in Ghana are governed by specific guidelines and conditions. Meanwhile, leasehold properties for up to 50 years are also available for non-resident Ghanaians to buy, and this can be a more affordable option. Foreigners who are residents in Ghana have more opportunities to acquire properties than non-residents.

Key Factors to Consider Before Choosing A Suburb in Ghana

If you've got your eyes set on the Ghanaian property market, you'll be spoilt for choice on investment opportunities. But dont always rush to choose one of the best areas to invest in Ghana without considering these key investment factors: rental yields, capital growth, market demand, and supply dynamics.

Capital growth

Ghana is nothing if not renowned for its booming property values. After the Covid-19 pandemic, Accra median house prices have shot up over 25%! As a foreign investor, if your focus is on the long term, looking for that big cash payout when it comes around to selling time, then you should consider capital growth areas in Accra a top priority. For instance, buying a bad property in a good neighbourhood turns out to increase its capital growth faster than buying a good property in a bad beighbourhood.

Rental yield

If you’re a foreign investor seeking swift returns on your real estate investments in Ghana, it is good that you prioritise suburbs with high rental yields. Granted, capital growth may be moderate, but substantial positive cash flow can be achieved due to low expenses and higher rental income. So, your crucial first step is to identify the suburbs with the highest rental yields in Accra. This will at least give a fair idea of where to start looking for a land or a property to buy in Accra to start your investment journey in Ghana.

Market demand 

Of course, there are high-demand real estate market areas in Accra that every foreign investor wants to go to, but it's crucial to consider whether these areas truly align with your investment goals.  Are they offering the best opportunities, or should you be looking elsewhere? Don’t just rely on the fact that investing in Ghanaian real estate is appealing due to the country’s rapid urbanisation, economic growth, and increasing demand for housing and commercial properties. 

Supply dynamics

To make informed real estate investment decisions in Ghana, particularly for foreigners, analysing supply dynamics in the targeted suburb is essential. This involves assessing existing housing stock, ongoing and planned construction projects, government policies and zoning regulations, and population growth trends. These factors will help predict future supply needs, identify opportunities, and mitigate risks, leading to better investment outcomes.

Top 5 Investment Areas in Accra for Foreigners

Depending on who your real estate agent is or which best neighbourhoods in Accra you’re looking at, you’re always going to get a difference of opinion about just what the best areas to invest in Accra are. Here are the best areas to buy land or property in Accra:

Airport Residential Area

Airport residential area is a prime location for both residential and commercial real estate in Accra. The area is particularly popular for its modern infrastructure, premium amenities, and central locations. The airport residential area offers a range of luxury apartments, making it a top choice for high-end foreign investors in the country. Properties in this neighbourhood command premium prices and offer high rental yields due to consistent demand.

Cantonments 

Cantonments is known as an exclusive enclave renowned for its diplomatic residences and high-end properties. The area offers excellent opportunities for residential, commercial, and mixed-use properties. Foreign investors are drawn by the neighbourhood's infrastructure, proximity to key business hubs and embassies, and a strong rental market. Overall, Cantonments is best known for its booming real estate market. 

Osu 

A lively and cosmopolitan district with a rich history and vibrant culture. Osu's bustling commercial activity, diverse dining options, and entertainment venues make it a popular choice for young professionals and tourists. The area's real estate market offers a mix of commercial and residential properties with strong potential for rental income.

Spintex

Spintex's warehousing sector, combined with its relatively affordable property prices, has made it an emerging hotspot for real estate investment in Accra. Spintex is one of the few areas in Accra where a unit still looks like a good buy, so it still shows promise as a top growth neighbourhood in Accra.

Tema

Tema is an industrial hub in Accra that attracts foreign investors from across the globe. The neighbourhood is also known for its beautiful beaches and relaxed lifestyle and is a popular destination for holiday homes and cheap home buyers. Tema houses about 90% of all industries in Accra, and because of this, there is high demand for housing in the Tema Metropolis. Tema’s growing manufacturing industry and cosmopolitan area make it an ideal location for real estate investment in Ghana.

Conclusion

We’ve shown you the best areas to invest in Accra, taking into consideration capital growth and rental yields. But in the end, one of the core decisions you have to make is about whether you’re after high capital growth or high rental yields. Looking for one or the other will really go a long way in narrowing your search down to one neighbourhood in Accra.