Yields in Accra, Ghana, are good at 8% - 11%

Residential Valuation Specialist | January 14, 2020

Last Updated: Jan. 14, 2020
ACCRA - Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
75 sq. m. 197,325 1,751 10.81% 2,591 23.35
175 sq. m. 397,775 2,921 8.81% 2,273 16.69
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Districts researched: Airport Residential Area, Cantonments, Dzorwulu, Labone, Ridge and Osu
The great majority of apartments listed on the web are offplan. The apartments included in this survey are new, some are second hand. Rental apartments are fully furnished.
Source: Global Property Guide

A 75 sq. m apartment would cost about US$200,000, and would rent for around US$1.750 per month, giving a gross rental yield of around 11%. Residential property prices are around US$2,200 per sq. m.

The rental market in Accra is relatively large with 37.5% of all households renting (only 22% for Ghana as a whole). Only about 40.4% of households in Accra claim ownership of their houses (57.4% for Ghana), while another 20.5% live rent-free (19.5% for Ghana). The remaining 1.6% of housing is employer-provided (4.5% for Ghana).

Property transaction costs in Ghana can be high, although in regional terms the total costs of buying and then selling a property are not unreasonable.

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.