Why Kumasi Is Becoming A Real Estate Goldmine In Ghana

The Ghanaian Real Estate market is now among the most attractive assets for investment in the African market. The current and potential future of Kumasi real estate trends are promising. This is especially true when considering the options available to Ghanaian real estate investors. Investors in real estate in Ghana have always found Kumasi to be a desirable location due to the city's thriving economy, cultural diversity, and consistent population growth. 

What Makes Kumasi Real Estate Market for Investment? 

Kumasi, (Ashanti Region) remains one of the most promising regions for real estate investment. The residential and commercial real estate in Kumasi are beginning to draw attention. Let's take a look at why Kumasi is such a good place for real estate in Ghana.

1. Population Growth

In every economy, a growing population means increasing demand for housing, which can lead to higher property values. Cities like Kumasi have experienced continuous population growth over the years, contributing to the Metropolitan's rising property prices. According to the Ghana Statistics Service, the Ashanti region experienced a population growth rate of 5.47%, with Kumasi being the primary beneficiary of this growth. This influx of people has created a significant demand for residential properties, from affordable housing options to luxury apartments, making real estate development a lucrative venture. 

2. Improved Infrastructure and Accessibility

Neighbourhoods that are set to benefit from infrastructure investments are often prime targets for future capital growth. That's why Kumasi is considered as a real estate goldmine for investors in Ghana. Projects like new expressways, public transport links, and urban development initiatives can transform neighbourhoods. The Government of Ghana is heavily focusing on infrastructure development to unload the population burden from the urban areas. People who want to invest in real estate in Kumasi should watch for government announcements about new infrastructure projects. These projects can have a big impact on the local property market.

3. Economic Growth and Commercial Expansion

The real estate market moves in cycles, typically characterised by periods of economic growth, stability, and decline. Identifying where a property market is within this cycle can be crucial for future growth predictions. Kumasi has a growing economy driven by trade and retail. It is, however, important that investors in Ghana understand the broader trends in the national economy, interest rates, and employment figures, as these will often signal shifts in property values.

4. Demand for Student Housing

Kumasi is home to several reputable educational institutions, including Kwame Nkrumah University of Science and Technology (KNUST), which attracts students from all over Ghana and beyond. The influx of students each year has led to a shortage of quality student housing, creating an opportunity for investors to develop purpose-built student accommodations. High demand for student housing means that these types of properties often have low vacancy rates and consistent rental income, making them a stable investment option in the city.

5. Affordable Land Prices Compared to Accra

Land prices in Kumasi are generally more affordable than in Accra, Ghana’s capital city. This affordability allows investors to acquire larger plots of land for residential or commercial development at a lower cost. The comparative affordability makes it easier for developers to launch large-scale projects and attract a range of buyers and renters, from low-income to high-income segments. With property prices expected to appreciate in the coming years, investors can benefit from long-term capital gains.

6. Growing Interest from the Diaspora

Ghanaians in the diaspora are increasingly investing in properties back home, driven by a desire to contribute to local development and secure properties for future use. Kumasi is often a preferred location because of its affordability, cultural significance, and promising market outlook. This growing interest from the diaspora is creating additional demand for residential properties, further driving up the market value and investment potential.

Considerations for Kumasi Real Estate Investors:

1. Infrastructure Impact: Make sure to research all the upcoming infrastructure projects in the area you’re looking to invest in. Real estate trends indicate that areas that will benefit from better transportation links or major infrastructure projects often see a surge in property prices.

2. Zoning and Land Use: It is important you always verify the local area’s zoning plans and any upcoming changes that could affect potential property development in the neighbourhood.

3. Market Trends: The market should tell the status of the property market in the area you are seeking to invest in. You can do this by monitoring the broader market trends, including interest rate changes and population growth statistics, as these will significantly influence future growth potential.

4. Long-Term Vision: Keep in mind that real estate investment is a long-term endeavour. While short-term market fluctuations can be daunting, properties in growth zones tend to appreciate over time.

Conclusion 

The real estate market in Kumasi is promising and welcoming both local and direct foreign investment on a greater scale. From mid-level residential & commercial properties to student housing, the Kumasi real estate market is rich with opportunities, and partnering with the best real estate company in Kumasi will help your investment stabilise in this industry.