Short let properties in Accra, the capital of Ghana, were in high demand throughout the last quarter of 2021. Among many other reasons contributing to this demand, the ‘Detty December’ rave, whose simple agenda: No sleep! Featuring shows, events, concerts and festivals held every consecutive day, had its impact.

In addition, Ghana is rising as a vacation spot in Africa, scoring many great opportunities for the business sector.

The real estate market is one of such industries with some investment opportunities worth your attention discussed below if your appetite for investment is large enough.

Bear in mind that just as with investments in other sectors, each option discussed here has its advantages and disadvantages.

REAL ESTATE INVESTMENT

There are several types of real estate investments: physical real estate investments like land; residential and commercial properties; and other modes of investing that don’t require owning physical property, such as REITs (Real Estate Investment Trusts) and crowdfunding platforms.

• RAW LAND

Basically, earth is land. However, a piece of land can be improved to increase its value. Buying a piece of land with the intention of keeping it for the future with the hopes that the land will be more valuable from development over the years (Land Banking) is an investment worth the while.

In Accra, mountainous areas such as Aburi, Peduase and its environs make great locations for Land Banking Investments.

Another great investment with raw land investment in Accra is to simply buy a large parcel of land, subdivide it and sell the divisions to make profit.

• SINGLE FAMILY HOMES

Single family homes are homes that accommodate one family at a time and can range from  two to five bedrooms. They are conveniently easy to manage, rent out and finance. These homes are usually rented out to couples or the average salary worker for profit gains.

Thus, investing in single family homes is probably the best option for first time investors even though the cash flow is slightly moderate.

• SMALL APARTMENTS

These properties are made up of 36 to 40 units. Unlike single family homes, small apartments are slightly difficult to manage as they are often used for short let rentals. Investment-wise, small apartments generate income as the demand for short let properties in Accra is steadily increasing.

Tenant screening, understanding the property’s value and managing the property properly are strategies that could be beneficial to yield a fruitful investment.

• LARGE APARTMENTS

Those large striking glass towers with luxurious residential units with all-inclusive amenities seen at places in Accra like Airport, Cantonments, Roman Ridge and East Legon to mention a few are the large apartment complexes.

Even though these apartments may cost millions of dollars to acquire, they can produce stable returns with minimal involvement. KASS Towers, Signature Apartments and Nova are some such large apartments with great management teams to consider for investment purposes.

• COMMERCIAL PROPERTIES

In every five steps taken in Accra, a commercial property, either a small local business or a supermarket, is spotted. Leasing a property for business purposes is profitable due to the demand for those buildings in certain areas such as Madina, Spintex, Osu, etc.

The size, style and location of the building usually determines its cash flow: a commercial property in Accra Central with human traffic will likely be highly sought after compared to a commercial property in Oyarifa.

Properties capable of being held for over a long leasing period are beneficial as well.

• INDUSTRIAL PROPERTIES

According to Law Insider, industrial property refers to property used for construction, repair, trade or manufacturing, production, assembly or processing of finished or partially finished products from raw materials or fabricated parts.

The industrial areas, Tema and Spintex, house many manufacturing and producing companies. Usually, these businesses occupy warehouses. However, with the rise in numbers of expats and foreigners in the country the demand for such facilities is equally rising.

Investment efforts can be directed toward this sector. It is, however, advisable to target a particular identified niche in the industrial sector for a more fruitful investment.

With so many real estate investment options in the Ghanaian market, you are probably excited about making money in real estate, however, as with most other investments, knowing what works for you in terms of risk appetite as well as the niche is paramount to your success.