Magazine article African Business

Property Development: Real Estate Sector Still Booming

Magazine article African Business

Property Development: Real Estate Sector Still Booming

Article excerpt

The property development market in Ghana is currently in its infancy: the market is growing as the younger generation of Ghanaians realise that the capital gains made from property is a quick path to wealth in periods of rapid inflation.

The industry is dominated mainly by residential and commercial developers. In the last ten years the residential market, undoubtedly the most vibrant in the industry, has registered an estimated 85,000 transactions yearly, with an estimated value of about USS .7 billion.

The commercial property segment, which includes office accommodation and retail space, is the second largest segment in the industry. Third is the industrial segment which is considerably smaller in size; recreational and civil/cultural property developments are new areas that are gaining interest among the industry stakeholders.

The Ghana Real Estate Developers Association (GREDA), an organisation of private real estate developers, has played an active role in property development in the country. They mainly service the upper income and expatriate demand for housing, especially in Accra and Tema. Regimanuel Gray, Parakuo Estates, NTHC Properties Ltd, ACP Estates Ltd and Manet Housing Company account for about 75% of the GREDA group's residential property development.

The Government participation in the property market is minimal compared to the private sector. The Tema Development Corporation (TDC), State Housing Corporation (SHC) and the Social Security and National Insurance Trust (SSNIT) are the only public sector-controlled agencies involved in the property market.

Rents for commercial properties range from USS 12 to US$25 per [m.sup.2] per month. Residential property rents range from USS1,500 to US$4,500 for apartments in the upper-end market (depending on dimensions and neighbourhoods). Construction costs range from US$250-1,000 per [m. …

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