Real Estate Property Investment Series: Focus Ghana 2007

Ghana's property market is a direct reflection of theto understand that every issue that exists to restrict
state of the West African nation itself in that it isthe attractiveness of the property market in Ghana
emerging, developing, has immense potential but isis being addressed by the government or external
restricted by serious fundamental issues relating toagencies and that this proves their intense
issues such as poor land title registration transparencycommitment to the improvement of their nation, the
and lack of affordable home financing solutions locally.boosting of their economy, the raising of living
The best approach to take with Ghana is to line up allstandards of its people and the establishment of a
the negatives, knock them down with proof that thesustainable source of foreign direct investment into
government and additional external bodies andthe likes of tourism and real estate.
agencies are tackling these issues head on and thenThe Tourism Potential in Ghana
identify the amazing potential available in Ghana forTourism in Ghana currently contributes up to 8.5% of
property investors from 2007 onwards...in this wayGDP and employs around 6.9% of the entire nation's
an investor can determine whether 2007 is the yearworkforce; going forward it is predicted that the
for them to begin their due diligence in Ghana fortravel and tourism sector will grow by about 4.9 -
long term capital appreciating investment5% annually from 2007, but for the Ghanaian
opportunities.government that is not enough. In a bid to raise the
Current Issues Facing Ghana's Property Marketprofile of the country they have brought in
The current issues facing Ghana's property marketinternational airlines as stated, they have also
include the fact that those buying resale land andliberalised their aviation policy as a result and ongoing
property often buy litigation rather than land titlethey are determined that this sector will boost the
because there is no decent system in place for theeconomy in a sustainable way over the long term.
registration of title deeds and transfers and becauseAn investor needs to understand that when tourism
the conveyancing system lacks transparency.comes in earnest to Ghana there will be multiple
In addition to this the level of tourism growth inlayers of opportunity because it is a nation rich in
Ghana is not sufficient for the tourism economy tonatural wonders, delights and beauty from untouched
become an attractive sector for foreign directand pristine beaches to an interior full of exotic and
investment at the moment. Furthermore there areamazing wildlife in abundance, and there are just not
problems in the main cities with homelessness andthe facilities for international travellers to experience
even those with a desire to own their own homesand enjoy such delights safely and in comfort.
and who have a decent salary with which to afford aThis represents huge investment opportunity...
home loan have limited and restricted access toLocal Affordable Housing
mortgages in Ghana.The other area an investor can examine from 2007
Efforts Underway to Improve the Real Estateonwards is the issue of the supply of affordable
Marketplace in Ghanahousing to Ghanaians. In recent years there has been
The current government in Ghana inherited thea trend of rural to urban flow of migration and the
situation as detailed above but are 100% focused ontrouble with this flow is that it has been strong and is
changing these issues and developing a nation ofsustained and there is just not enough housing to
middle income home owners. To that end they haveaccommodate all those arriving and looking for work.
started numerous programs and schemes such as aAs a result there is a homelessness problem
program to attract greater foreign direct investment.developing in some of the more densely populated
The government is also working in partnership withareas of the country and those with property assets
the likes of Canada Mortgage and Housingavailable to let have been exploiting those requiring
Corporation and Development International Desjardinshousing and demanding up to 3 years rent in advance.
to develop regulatory reforms in the mortgageIn a bid to solve this problem the government has
market and they have brought American basedannounced incentives for constructors to build
Broad Cove Partners Inc in which is an emergingaffordable local housing starting in 2007 - and for the
market financial advisory firm and which is nownext five years as part of the National Housing
developing a new USD 30 million long term propertyProgramme 20,000 new homes will be built in Ghana
finance facility to assist with affordable housing andannually. Naturally enough investment in this sector is
mortgage finance in Ghana.still required and those with a social conscience who
In 2007 a new program to register every house onwant to actively participate in something that will
every street in Ghana will get underway to beginreturn them a profit whilst benefiting a nation
solving the land title issues and on the tourism side ofrestricted by poverty should look at how they can
things the Ghana Tourist Board has been activeget involved.
under the Acting Executive Director Martin Mireku. SoIn conclusion, while there are true emerging market
far Mr. Mireku has brought Delta Airlines and Northproblems affecting the property market and the
American Airlines to Ghana with multiple direct flightsinvestment potential from real estate in Ghana at the
between Accra (the capital of Ghana) and the likesmoment, everything is being done that can be done
of New York every week and there is a strongto positively address and solve these problems. The
campaign underway for these airlines and othermost important factor to keep in mind therefore is
international tourism representatives with interests inthat Ghana knows it has potential and is doing all it
Ghana to promote the attractiveness and potentialcan to achieve this potential...and an investor seeking
of the nation to the wider world.massive opportunity, low start up costs and huge
A property investor looking at whether Ghana is along term potential for growth could well find that
viable option for portfolio expansion purposes needs2007 is the year for them to explore Ghana.