Ghana real estate: Experts view 2018 as turning point for revival following tough few years
Weakened demand and increasing supply in Accra’s property market has put pressure on vacancy rates and rental growth over the last few years. As a result comments about oversupply in Ghana real estate market feature in many public discussions. Astute investors have learnt to read through these discussions to focus on the quality of supply and assets that will offer sustainable rental income. Tom Mundy, Head of Research for Global Property Firm, Jones Lang LaSalle, believes that the “highest quality assets have largely remained fully leased” and with the economy improving, sees 2018 as a turning point”. Mundy also forecasts Ghana to have one of the strongest economic profiles on the African continent. Evidence of this revival is the recent arrival in Ghana of dual listed Mauritius and South Africa-listed real estate fund , GRIT. GRIT announced in March the acquisition of 5th Avenue Corporate Offices in Cantonments which was owned by Greenline Developers. The implementation of REIT legislation in Ghana will also boost the real estate market by allowing more institutional players. These developments cement our vision when we launched Riviera in the middle of the economic slowdown in the knowledge that landmark buildings and unique schemes will hold up well as the economy rebounds.