The Rise of Co-Working Spaces in Ghana’s Real Estate Market

Coworking has disrupted the commercial real estate industry in Ghana and is changing the traditional way we all work. Demand for flexible office space in Accra is increasing and the current trend shows no signs of going back to the old ways. This sudden shift in the real estate sector driven by co-working spaces has become a crucial component of Ghana’s modern workspace landscape. 

But what is behind this growth, and what does it mean for the future of Ghana’s real estate market? While freelancers, startups, and solopreneurs largely favoured coworking setups, more corporates globally than ever before are choosing flexible workspace options to decrease costs, explore new markets, and embrace a more agile way of working.

What is a Co-Working Space?

So, that leads us to the obvious question, what are co-working spaces? Generally, the definition of coworking is when individuals or businesses assemble in one space to work independently on different projects, or in groups on the same projects. It’s different from a traditional office workspace because the people in a coworking environment aren’t working for the same purpose or company. Coworking spaces offer the same amenities you would normally find in a traditional office, along with a lot more. A major difference is the flexibility since you don’t need to sign a long-term lease in a coworking space.

The Evolution of Co-working in Ghana 

The growing phenomenon of coworking has had a major impact on the Ghanaian property market and how investors and landlords view space. Ghanaians began to appreciate it after COVID-19 struck the world and working from the office became redundant so we had to rely on remote working. This resulted in surplus office spaces and others became vacant. That's when commercial real estate developers in Ghana began to buy the idea of co-working spaces in the country.

The coworking phenomenon has provided clients with more choice and flexibility than ever before. It offers several options, from serviced offices and executive suites to hybrid spaces, which combine the best of coworking and private office space. The main reason for its increasing popularity in Ghana is the agility it offers businesses of all sizes, but there are plenty of other benefits. 

The Growth Drivers: Why Co-Working Spaces Are Thriving in Ghana

1. Increasing Entrepreneurial Activity

One of the very reasons coworking is getting noticed in Ghana is because of the increased entrepreneurial activities. Every year Ghana records high numbers of startups, small businesses, and freelancers entering the market. All these activities need flexible working space that the traditional office buildings cannot provide. Instead of locking a business into a traditional office lease, coworking allows companies to rent a desk or private office on a short-term basis and this appears to be an attractive option for these entrepreneurs. 

2. Rise of Remote Work and Freelancing

COVID-19 orchestrated the adoption of remote working globally and Ghana was no exception. Management of top companies bought the idea of hybrid work models that at some point in time employees split time between working from home and the office. This shift has made coworking an ideal solution since employees can have the luxury of working freely. 

3. Networking and Community Benefits

Coworking spaces help to create a sense of community as like-minded business owners, freelancers, and entrepreneurs interact and build connections. Coworking spaces are more than just physical offices because all administrative tasks are taken care of via onsite support, leaving clients free to focus on work. Coworking offices are also often situated in prime locations, making travelling, meeting, and networking that much easier. Coworking spaces offer a vibrant community, networking opportunities, and collaborative environments that foster innovation. 

4. Cost-effectiveness and Flexibility

One of the biggest advantages of co-working spaces is its affordability. Coworking allows businesses working on a tight budget to enjoy predictable monthly overheads and expenses and sometimes the high upfront costs associated with leasing and furnishing traditional office spaces. The costs for Internet, utilities, and other basic office supplies are built into the pricing upfront. Plus, coworking means a client pays only for the space they use.

5. The Concept of Shared Space

Traditional real estate models in Ghana have focused on leasing large, isolated office spaces to corporate companies. However, coworking spaces provide a more flexible alternative by allowing individuals to rent only the space they need while sharing social common areas such as social hubs and conference rooms. This not only allows for cost savings but also encourages collaboration, innovation, and networking among individuals and companies.

Key Players in the Co-Working Market in Ghana

Several co-working spaces have emerged as key players in Ghana’s real estate scene, offering various services and amenities tailored to different business needs:

• Impact Hub Accra: Impact Hub is one of the trailblazers in Ghana’s co-working scene, and has been paving the way for entrepreneurs and innovators. It’s a locally rooted, globally connected, and inclusive membership community for the entrepreneurially minded. 

• Kukun: Kukun renders service for workspace and Cafe in Osu, Accra. Kukun has a variety of workspaces and private offices available for daily, weekly, or monthly rates.

• iSpace Foundation: iSpace Foundation is an Innovation, Technology, and digital hub for tech startups that offer a conducive environment for growth in the Startup Ecosystem by providing a working space. It’s a place where the next big thing could be born, and the future of technology is shaped in Ghana.

• Workshed: located at Spintex, Workshed is proven to be the haven for freelancers, startups, and small businesses. It’s more than just a workspace; it’s a vibrant community where ideas collide and creativity thrives. 

Impact of Coworking on the Real Estate Market

The co-working space is shaking up Ghana’s real estate market. Commercial real estate developers are racing to build flexible office spaces, answering the call from local and international businesses looking for something new. Old office properties are getting a fresh start, transforming into co-working hubs that breathe life into once-sleepy areas.

The impact is felt in the heart of the city, where co-working spaces are driving up property values. Osu, East Legon, and Airport City are no longer just about traditional offices. They’re becoming vibrant hubs of activity, filled with co-working spaces, cafes, and collaborative spaces. It’s a new era for Ghana’s business landscape, and the co-working movement is leading the way.

Challenges and Future Outlook of Coworking in Ghana

Ghana’s co-working scene is booming, but it’s not without its hurdles. High rents in prime locations can make it tough for some entrepreneurs to join the co-working club. And the delicate balance between keeping the lights on and keeping the spaces full is a constant challenge.

Though the future looks promising for coworking spaces in Ghana. Corporate businesses are beginning to go back to the normal traditional office work because they believe it is more productive to work together in one office. The caveat is that more businesses continue to embrace hybrid work and the entrepreneurial spirit continues to soar, the demand for flexible office solutions is only going to grow. 

Conclusion

The rise of co-working spaces is a testament to the changing dynamics of Ghana’s real estate market. These flexible work environments are not only meeting the needs of modern businesses but are also reshaping the urban landscape. As co-working spaces continue to gain traction, they will play a critical role in supporting entrepreneurship, driving innovation, and shaping the future of work in Ghana.