“It’s like a city for the rich”—a phrase that resonates as housing, a basic necessity, is increasingly becoming a luxury, even though it’s meant to be a home for all. This shift has made real estate investing a lucrative venture, but it also raises some pressing concerns.
There was a time when previous generations could purchase land at affordable prices, but today’s reality is starkly different. Young families now face rent prices that far exceed the average Ghanaian salary. While wages have risen since 1980, the current minimum wage in Ghana for 2024 stands at 14.88 cedis, just slightly up from 13.53 cedis in 2022. Despite these incremental gains, the growing disparity between wages and housing costs, especially in prime areas of Accra, makes it difficult to keep up.
Accra’s allure is undeniable—the city’s beauty, particularly at night, with its breathtaking views, adds to its charm. However, these soaring housing prices make it challenging for young families, who aspire to live in decent, middle-class neighborhoods, to afford rent.
The high cost of housing has led many young, average Ghanaians and locals seeking better opportunities to move to the outskirts of the city. This relocation brings its own set of challenges, particularly with the transportation system. More workers are forced to commute from outside the business hub of Accra Central, leading to traffic congestion that adds stress to their daily routines. One can’t help but reflect on the saying, “workers are at their best when they are happy.” How can they thrive when commuting long distances every day?
Yet, amidst these concerns, there are promising opportunities in emerging areas just outside Accra. Developments are taking place in locations only a few kilometers from Kotoka International Airport, offering potential for real estate investing. These areas could be part of the solution to the housing crisis, providing more affordable alternatives while still maintaining access to the city.
Below are a few investment opportunities that are worth exploring.
Developing Affordable Housing Projects
With the rising housing costs in Accra, there is a significant demand for affordable housing options. The Greens Ghana located in Tema Community 25 is championing this quest with a blend of modern living and affordability.
Investing in residential developments in areas like Tema can help meet this need, which may serve as rental units or short-term stays catering to young families and middle-income earners who are being priced out of central Accra.
Investing in Mixed-Use Developments
Creating mixed-use properties that combine residential, commercial, and recreational spaces can attract diverse tenants and buyers. These developments provide amenities that enhance quality of life while appealing to investors looking for stable returns in growing suburban areas.
Land Development in Emerging Areas
With the trend of young families relocating to the outskirts of Accra, opportunities exist to acquire land for development in these emerging neighborhoods. This could involve creating communities that offer modern living features, ensuring that properties meet the needs of new residents while remaining affordable.
While there is a housing crisis regarding pricing in central Accra, these emerging opportunities in the Ghanaian real estate sector are worth considering, especially for investors looking to address a pressing need while making sound investments.
