Accra’s Real Estate Market Most Lucrative Than Nairobi and Kampala – Report

Accra, Ghana’s real estate market is a more attractive market for investors compared to Nairobi, and Kampala due to dollarized rental yields in residential, un-serviced and serviced offices.

Cytonn Real Estate’ report titled “Accra, Ghana Real Estate Investment Opportunity” revealed rental yields in residential, un-serviced and serviced offices have an average of 7.6 percent 10.1 percent and 14.3 percent, respectively, compared to Nairobi with 3.8 percent, 7.5 percent and 13.4 respectively, respectively, and Kampala with 6.8 percent, 10.6 percent and 6.1 percent, respectively.

Kigali however, has the highest yields at 9.2 percent, 12.9 percent and 13.1 percent for residential, office and retail themes, respectively.

“The Kigali market’s outstanding performance is due to its nascent stage, evidenced by its small population of 1.1 mn against matured markets such as Accra’s 2.4 mn, Nairobi’s 4.1 mn and Kampala’s 1.5 mn people, according to the country’s respective statistical bureaus,” reads the report.

Read: Kampala more attractive for real estate investors than Nairobi – Report 

However, the country acquiring land is difficult due to multiple land ownership issues due to the communal–system of land ownership and the high cost of construction materials discourages aspiring investors noted the report.

As regards to Accra, Cytonn Real estate says they have a positive outlook for the real estate sector given the improving political governance with the IMF intervention program, increased entry of multinationals, as well as a positive demographic profile.

In their findings, the best investment opportunities in Accra are in serviced offices, and 3, 4 and 5 star hotels.

Accra’s hospitality sector has better performance with average daily rates of USD 210 compared to Nairobi’s USD 130, and occupancy rates averaging 61.0 percent in Accra compared to Nairobi’s 55.0 percent.

According to the report, factors driving real estate in Accra include Improved Macro-Economic Environment whereby the country has exhibited strong fundamentals supporting its economic growth, Demographics, whereby the country’s population is growing at a faster rate of 2.2 percent compared to the global population growth rate at 1.2 percent. Additionally, 53.9 percent of the population lives in urban areas and the rate of urbanization is 3.4 percent per annum compared to the global urbanization rate of 2.1 percent per annum.

Spending Power, Oil and gas discovery and the country’s political stability have also been named as key factors that have contributed to the growth of real estate sector in Accra, Ghana. 

Cytonn Real Estate is eyeing to venture into the Kampala and Accra markets by mid-2019.