Real Estate Markets in Ghana: the dynamics and potentials

Accurate measures of real estate values are highly desirable for economic analysis, financial analysis, and public policy. Real estate, from an economic perspective, is a major store of wealth. Changes in its value strongly influence consumer spending and savings leading to an overall impact on economic performance. Lending institutions rely on estimates of market values to contract mortgages and estimate lending risks to demonstrate the financial perspectives of real estate markets in the country. In the case of social policy, the market value of real estate asset determines housing affordability and the access of different social groups to adequate housing. Premised on these three perspectives, the paper discusses the dynamics of real estate market development in Ghana. It seeks to discuss the residential and commercial real estate markets in Ghana, using transaction-based data from Accra and Tema, the dominant markets as a case study. The paper would afford the opportunity to discuss the development of residential submarkets as well as high quality commercial real estate markets in the two cities.Ghana is one of the fast-growing economies globally and its high-quality real estate markets – residential and commercial – are increasing at a quicker rate than most developed economies. Capital build-up in the country in recent years has served as an attraction for investors to seek opportunities in the country. This paper is therefore intended to provide a broad platform for a better appreciation of the real estate market in Ghana.