Ghana’s commercial real estate space has grown tremendously over the years, particularly, with Ghana’s recent rise as an African tourist destination. As a result, new businesses and establishments have sprouted up in the country’s major cities, mainly, of Accra and Kumasi, increasing demand for commercial properties and providing landlords with new business opportunities.

However, new economic difficulties have emerged both globally and locally, affecting a variety of business sectors.

The real estate sector is not immune, and the following are a few commercial market themes or predictions to keep an eye on, especially, if you are a new investor or an individual looking to carve a path in Ghana’s real estate market.

Increased Demand for Commercial Real Estate (Office Space) in Major Cities

As businesses continue to expand and invest in the country, the demand for office space in major cities across the country (such as Accra and Kumasi) is expected to rise. To meet this demand, new developments such as office buildings and complexes may be built in areas considered as (or which have good prospects of becoming) high commercial zones.

Furthermore, as demand outstrips supply, landlords may see an increase in rental rates for existing office spaces. 

Retail Sector Expansion, Particularly, in Shopping Centres and Malls

As consumer spending and disposable incomes rise, there will, likely, be an increase in demand for retail spaces, such as shops and stores in Accra and Kumasi’s highly commercial zones. Real estate developers may respond to this demand by constructing new or expanding existing shopping centres and malls. Existing retail landlords may see an increase in rental rates as demand for these spaces grows.

Despite this, it is essential to note that consumer price inflation and the expectation of a renewed economic slowdown in 2023 may influence how people shop. Online shopping has also grown in popularity, and people may be less inclined to visit physical stores. As a result, retail growth may be slower than expected, or it could be limited to the e-commerce sector.

Population Growth and a Desire for Higher Quality Housing will Drive the Development of New Residential Areas and the Expansion of Existing Ones.

Developers may respond to this demand by building new housing developments such as apartments for rent and single-family homes, in areas with high population growth. Additionally, existing residential areas can be expanded by adding new homes or renovating and upgrading existing homes for sale.

This increase in residential construction may also result in the development of new commercial buildings, infrastructure, and amenities such as schools, parks, and transportation, in these areas, making them more appealing to potential buyers.

However, the ability of developers to secure financing for new projects may be hampered as the global economy weakens. As a result, the growth of new residential areas and the expansion of existing ones may be slower than expected overall and in comparison to previous years.

Increased Investment in Infrastructure will Benefit the Property Market and Create More Appeal for Investors.

Increased investment in infrastructure, such as transportation and utilities, can have a positive impact on the property market, particularly, the commercial market, making it more appealing to investors. Improved transportation infrastructure such as new roads, and public transportation systems can make it easier for people to travel back and forth, increasing the desirability of properties located near these transportation hubs.

Additionally, improved utilities such as water, electricity, and internet can make properties more livable and attract more buyers and renters. Such communities will naturally see a growth in their population, thereby, making them more appealing for businesses and industries to relocate or site new branches there as well.

However, it is essential to note that infrastructure investment is also dependent on the government and the state of the economy. If the rising inflation is not arrested, that may affect what government prioritises for development. Also, if government is successful with the IMF negotiations and the terms of the deal prohibit or discourage activity in some areas of development, that may potentially affect capital expenditure such as those investing in the nation’s infrastructure.

It is important to note that the impact of the pandemic, as well as the general economic hardship, may change for the better or worse and that government policies and actions may also have an impact. As a result, it’s critical to monitor the situation knowing what the likely possibilities are but also keeping an eye out for the events which may change the trajectory, and make adjustments as needed.