The Future of Ghana’s Real Estate
Africa has experienced significant economic growth in the last decade and its stability has improved perceptions about the continent. As the last emerging investment frontier, Africa has seen the optimism in the number and diversity of businesses and countries flocking to invest in the continent.
Ghana has seen consistent economic growth over the past ten years with an average annual Gross Domestic Product (GDP) growth rate of 7.69 percent and is ranked as the twelfth largest economy in Africa, based on GDP (IMF 2015 Global Economic Outlook).
Ghana’s population is estimated at 25 million, with age distribution, which indicates that the majority of the population is young. About one third of the population is between 22 and 54 years, indicating a young, agile, and growing population. According to the Ghana Real Estate Development Association (GREDA), the country’s housing deficit is estimated to be 1.7 million. With the economy growing and incomes rising, Ghana’s age distribution also reflects the growth potential for the real estate market in the future. Generally the huge housing deficit with infrastructure bottlenecks and the increasing population presents a supply and demand mismatch. This however presents opportunities to real estate investors.
In a bid to contribute to bridging the infrastructure gap in Africa, Rendeavour, Africa’s largest urban land developer is investing in several satellite city development projects across five African countries. Rendeavour currently owns more than 30,000 acres (12,000 ha) of land in the urban growth trajectories of major cities in Ghana, Kenya, Nigeria, Zambia, and the Democratic Republic of Congo.
Backed by Investors from New Zealand, USA, Norway and the UK, Rendeavour’s vision goes beyond alleviating what is a self-evident problem – that of stifling urban congestion and a dearth of quality housing and commercial property.
Rather, it aims to help create the infrastructure – the living and working spaces and communities – that will help sustain and accelerate Africa’s economic growth, meet the aspirations of Africa’s burgeoning middle classes, and serve as a catalyst for further urban development.
Rendeavour has two urban developments in Ghana: Appolonia City in Accra and King City in Takoradi. These projects seek to re-define the future of real estate in Ghana.
Appolonia City is a 2,325-acre (941ha) mixed-use and mixed-income urban development in the Greater Accra Metropolitan area. The project is being developed for residential properties, retail and other commercial centres, as well as schools, healthcare and other social infrastructure. World-class infrastructure is currently being developed which includes water, electricity, and tarred roads with storm water drains.
Residential sales are underway with the option of purchasing a plot to build one’s own house in Nova Ridge or an existing home at the Oxford development. The Appolonia City Business Park offers 70 acres (30ha) of modern commercial areas with world-class infrastructure and estate management services. The park is designed to accommodate a range of uses including manufacturing, processing, storage, logistics and service companies. Commercial developments currently include Ghana Home Loans and Total filing station with Golden Pride School constructing the area’s first private school.
King City is also a mixed-use urban development in the Western Region of Ghana. The project will accommodate residential and commercial growth primarily associated with the region’s mining and energy sector.
Rendeavour is setting the agenda for proper master planning in Ghana’s urban communities, which has been the main challenge for several years. It is expected that the Government and other real estate investors will embrace this laudable project and promote similar well-planned urban developments.