A FALLING CEDI AND ITS BLOW ON REAL ESTATE IN GHANA

The dropping value of the Ghana cedi versus major trade currencies and growing import costs are once again harming the country’s real estate market. Players in the industry are being adversely affected by the decline in the cedi’s value because the majority of real estate firms price their properties in dollars or use the dollar as a benchmark, which results in an automatic increase in housing prices and, therefore, a decrease in sales.

Coupled with that, the current real estate industry crisis is also attributed to high port fees. On imported items utilized as fixtures, fittings, and finishing, market players must pay substantial tariffs.

Ghana’s economy is reliant on imports. Due to a decreased supply of foreign cash from exports, the nation must continue to purchase foreign currency to cover its import needs. The nation occasionally reports a net gain when export revenues surpass import expenses, but these are only theoretical benefits.

The price of imported items has increased as a result of currency depreciation. The majority of imported items are intermediary goods utilized in domestic manufacture. Rising inflation is the result of this. There seems to be no light therefore at the end of the tunnel for the real estate sector as inflation continues to rise with an accompanying depreciating currency.

Why this is the Best Time to Invest in Real Estate in Ghana

The popular saying, “If you can’t beat them, just join them” perfectly describes what can be done about the real estate crisis at such a time as this. Why stand idle and get battered by a falling currency when you can invest wisely and make money? The value of the cedi keeps falling and inflation also keeps rising. A consequence of this is that rent and the prices of properties will be high as business people in the real estate sector will want to share their costs with the general public. This makes it a perfect time to invest in real estate as you’re almost certainly assured of high returns.

Ghana has a significant housing shortage, which leads to strong demand for homes. According to experts, Ghana has a housing shortage of over 2 million. This shortage presents chances for investors to fund housing projects in Ghana. In Accra, there is a sizable rental market. According to statistics, 37.5% of residences in Accra are rented. That represents around 22% of Ghana’s total population. As an investor, purchasing a home in Ghana may enable you to create a new source of income by renting it out on the low, mid, or high-end market.

Not only that but Ghana’s capital city, Accra, experiences a high demand for real estate from both local and international buyers. Because of this demand, property owners are able to get a significant return on their investment. For instance, according to statistics, rental returns in Accra typically vary from 8 to 12%. This is one of the greatest yields in Africa.

Assuming you invested Ghc80,000 in real estate in Jan 2022, that investment would have become Ghc98,000 just by natural indexing of the USD – GHC rate. With the cedi’s value still dropping against the dollar, there has not been a better time than this to invest in real estate.

Speaking of real estate investment, Nyame Dua by Sethi Realty offers great solutions in terms of Affordable Housing. They provide state-of-the-art infrastructure in the heart of Tema at affordable prices. A 2 Bedroom costs Ghc425,000 onwards. For inquiries contact +233 551438888 / 233551435555.

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