Exploring the Changes in Africa’s Real Estate Industry using Ghana as a Case Study

Adwoa Konadu Prempeh and Gad Asorwoe Akwensivie

AfRES from African Real Estate Society (AfRES)

Abstract: Real estate in Africa is constantly changing due to changing tastes, technological advancement and access to finance. Real estate practitioners in Africa face the overwhelming task of keeping up with trends, hence the need to investigate and present a trend. The study employs a case study approach within a quantitative and qualitative data analysis paradigm. The study employed a combination of trends, time series and observations. The research and its findings and conclusion hinge on robust empirical evidence with quantitative and qualitative data analysis.The study finds that several things are certain to happen in the coming years. These include the following:Big demand for condominiums, apartments and similar shared properties: Condominiums and similar shared properties will be in high demand as the strategy (by both government and industry players) to solve the housing demand/supply imbalance.Solar will be in high demand: A growing proportion of property owners are financing the installation of rooftop solar power. Developers should be incentivised to install solar and alternative energy storage systems in their packages.Online brands will rule the market: This will happen because property buyers and sellers will look online first to find your contact information and audit your credentials and footprint.Specialisation instead of generalisation: Currently, real estate developers and agents are generalists, able to “sell, buy, and build anything, but in the coming years, the best developers and agents will have to differentiate themselves by specialising in specific segments of the market as a way of being different.Rise in short-term rentals: This will create an opportunity for large property owners or single-family owners. Tax reform will likely reduce ownership benefits: Under the new tax laws that would be in place, homeowners 25 years from now won’t be enjoying the many tax benefits for ownership today.The hottest properties will be in the south, along the coast: The biggest home sales increase is expected in the south and along the coasts. In Ghana, places like Sekondi-Takoradi, Cape Coast, Accra, Tema and lesser- known towns like Sogakope, Ada, Winneba, Salt-pond, Elmina and Elubo will be the hottest places for property sales. It is envisaged that there will be sales growth of around 30 % or more for properties along the coast as against 15-20% in Ghana for example.The study provides evidence of the trends in real estate in Africa, which is relevant to practitioners.

Keywords: Ghana; Housing demand; Real Estate Development; solar and alternative energy; specialisation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
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