Property Sector in Ghana Boosted

A plethora of positive news from Ghana this week is boosting the country’s property sector and will likely have a medium term upbeat effect on the overall real estate and tourism investment economies.

Firstly changes to tax rules mean that profits derived from property investment can now be taken tax free and secondly a multi million dollar American African joint venture is developing a series of housing projects in Prampram which will represent not only affordable housing options for a population in need of new homes, but it will offer property investors a new range of projects to target in Ghana.

The property sector in Ghana has been in danger of falling stagnant according to the Ghanaian Chronicle with property developers only interested in targeting the upper echelons in terms of affordability and spending power.  This has left a large housing deficit in a country where the majority of citizens aspire to own their own homes but where previously only a small minority could afford to own their own homes.

We at Amberlamb recently reported on the positive effects of a softening and widening of the mortgage market in Ghana and the likely effects this will have on the overall property sector in the country, but the taxation and investment news out this week from Ghana boosts this positive news even further and bodes exceedingly well for this cutting edge market.

The changes to the tax regime affect the payment of capital gains tax with The Securities and Exchange Commission abolishing the tax on profits from property until the end of 2010.  A representative from the Ghana Stock Exchange has stated that they expect to see more of these untaxed profits being poured back into investments in Ghana and overall the news has been welcomed as extremely positive for the investment climate in the country.

The changes to the laws are expected to encourage more local investment and also broaden the investment base to embrace overseas investors as well.

Meanwhile a joint American and African property development venture has been announced in Prampram in the greater Accra region.  US based C.A. Norman Group Incorporated has raised the required ten million dollars through private investment and company funds to develop forty five homes, two schools and a power generation plant on a site that in the future could house and have the infrastructure to support up to seven thousand homes. 

The project has been named Stadium View Estates as it is in close proximity to the new stadium, it is also close to the new airport, the beach and the major tourism areas at Tema Fishing Harbour with its fishing and eco-tourism.  The project is due to break ground this autumn and the first stages will be ready in eighteen months – depending on the success of the development of the first forty five homes, the schools and the generation plant, future development of the site will follow.

It is hoped that both local buyers and global investors in search of an excellent and well funded opportunity in a market as emerging as Ghana’s will relish the chance to break into the market and secure assets ahead of a sustained and sustainable expansion of the overall real estate sector in Ghana. 

Special Reports: Property News for Ghana

Ghana Property Investment Potential
Property investors seeking an emerging real estate market offering unlimited potential with residential and commercial opportunities should consider Ghana

Ghana Property Buying Guide
Because of land registration issues in Ghana the investment property buying process is quite complex and requires good legal assistance

Ghana Property Investor’s Country Guide
The long term potential in the real estate market in Ghana for property investors is massive.