Alina Aeby, Founder/President of Silicon Valley Proptech Association

The Africa Real Estate Conference and Expo (ARCE) took center stage in the heart of Accra, Ghana between October 13 and 18, 2023. Organized by the Ghana Real Estate Association (GREPA), the event united real estate enthusiasts, experts, and stakeholders focusing on the transformational power of PropTech solutions and the industry’s digital evolution.

ARCE 2023 was a momentous gathering that provided a platform for knowledge exchange, networking, and exploration of cutting-edge trends shaping the future of real estate. The conference had participants from Ghana, Nigeria, South Africa, and the United States. This diversity sparked engaging conversations and the sharing of best practices from various real estate markets.

The cross-border collaboration that ARCE encouraged was a testament to the growing international interest in Africa’s real estate sector. It showcased how the African real estate market is becoming increasingly attractive for global investors and how the exchange of ideas and knowledge can benefit all stakeholders.

The central theme of ARCE 2023 was the profound impact of PropTech (Property Technology) on the real estate sector. PropTech encompasses a wide array of technologies, including artificial intelligence, virtual reality, blockchain, and data analytics, designed to enhance property management, streamline transactions, and improve the overall real estate experience.

Attendees had the opportunity to delve into the latest PropTech innovations and their practical applications in the industry.

Presentations and panels explored topics such as property management software, smart home technology, and the use of virtual reality in real estate marketing, ESG reporting, digital twins, blockchain, AI and more. The discussions revolved around how PropTech can streamline processes, reduce operational costs, housing deficit, increase affordability and enhance the overall efficiency of the real estate sector.

The event emphasized that embracing PropTech is not just an option but a necessity for the real estate sector. To stay competitive and meet evolving consumer demands, industry professionals must adopt and adapt to these technologies.

The event also showcased that Africa’s real estate market is a hotspot for innovation and investment. With a growing population and a rising middle class, it offers immense potential for real estate development.

ARCE 2023 was a great success in exploring the dynamic intersection of digital transformation and the future of real estate. The event fostered collaboration among stakeholders from different countries and emphasized the crucial role that technology plays in shaping the industry’s future.

As the real estate sector continues to evolve, ARCE and GREPA serve as a clear reminder that Africa is at the forefront of growth and embraces the digital innovation in the real estate industry. With a commitment to embracing PropTech and a dedication to international collaboration, the future of real estate in Africa is incredibly promising. ARCE 2023 was not just an event; it was a testament to the real estate sector’s vibrant future on the African continent and beyond.

Ghana Real Estate Sector and Digital Transformation at Glance

Ghana’s real estate sector has undergone significant transformation in recent years, driven by digitalization, evolving land and ownership rights legislation, and a burgeoning need for affordable housing. The country’s efforts to attract foreign investors, especially through initiatives like the “Year of Return,” have bolstered investment prospects. This article explores the current state of Ghana’s real estate sector, its challenges, improvement opportunities, financing structure, housing shortage, and investment dynamics, as well as its tourism potential and infrastructure development.

Digitalization and Land Ownership Rights

The digitalization of land records and ownership rights has been a pivotal development in Ghana’s real estate sector. The introduction of the Ghana Enterprise Land Information System (GELIS) and the Land Administration Project (LAP) has streamlined property registration and ensured the security of land tenure. These initiatives have not only reduced the prevalence of land disputes but also enhanced investor confidence in the sector.

Ownership rights are now more clearly defined, and the registration process is becoming more transparent, making it easier for both local and foreign investors to navigate the complexities of land acquisition. This progress has positively impacted the growth of the real estate market.

Challenges and Opportunities

Despite the significant advancements, Ghana’s real estate sector faces several challenges. The most pressing issue is the housing shortage. The demand for affordable housing far outstrips the supply, resulting in soaring property prices, particularly in urban areas. This issue is exacerbated by a lack of long-term financing options for both developers and potential homeowners.

Improvement Opportunities and Financing Structure

Ghana’s real estate sector offers substantial improvement opportunities, with an emphasis on affordable housing. The government has recognized this need and is actively promoting partnerships between the public and private sectors to develop affordable housing projects. The establishment of the Ghana Real Estate Development Fund (GREDF) is one such initiative aimed at providing financing to developers and homeowners, especially for low and middle-income housing.

Furthermore, the mortgage market is undergoing reforms to increase access to long-term home financing. The creation of the Ghana Mortgage Market Fund (GMMF) has facilitated the availability of mortgage loans and helped address the affordability issue.

However, the inflation and instability of Ghana national currency, cedi against the USD makes financing difficult for the medium and low-income domestic buyer. The mortgaged real estate transactions in Ghana represent less than 10% and less that 1% of the GDP.

Foreign Investors in Ghana’s Real Estate

Foreign investors are increasingly showing interest in Ghana’s real estate market. Many factors contribute to this, including the stability of the political environment, sound legal frameworks, and economic growth. Foreign investors in Ghana’s real estate sector come from various countries, with significant contributions from Nigeria, China, the United States, and the United Kingdom.

The “Year of Return” and Efforts to Attract Foreign Investors

The “Year of Return” in 2019, commemorating 400 years since the arrival of the first enslaved Africans in America, marked a pivotal moment for Ghana’s tourism and real estate sectors. The initiative successfully attracted the African diaspora and other visitors, significantly boosting the demand for accommodation. Ghana’s government recognized the potential for increased investment and has continued its efforts to attract foreign investors. These include investment forums, incentives for investors, and streamlining business registration processes.

Tourism Potential and Hotel Infrastructure

Ghana’s rich cultural heritage, natural beauty, and historical significance make it a growing tourism destination. Investments in tourism infrastructure, such as improved airports and road networks, have enhanced Ghana’s appeal. However, there remains a need for additional hotel capacity to accommodate the growing number of tourists. International hotel chains and local developers are increasingly investing in the construction of new hotels to meet this demand.

Airbnb has also gained traction in Ghana, providing alternative accommodation options for tourists. This platform has offered travelers more choices and contributed to the diversification of the hospitality sector.

The ROI’s for long- and short-term leases for investment properties are 8-12%. According to Ghana Constitution, foreign investors can lease land up to 50 years with the possibility of extended concession terms. Ghana’s real estate sector is evolving rapidly, thanks to digitalization, improved ownership rights legislation, and government initiatives aimed at addressing the housing shortage. The attraction of foreign investors and initiatives like the “Year of Return” have bolstered investment prospects and strengthened the sector’s growth. With a focus on affordable housing and a burgeoning tourism industry, Ghana’s real estate sector is poised for further development in the coming years. Collaborations between the public and private sectors, innovative financing structures, and continued infrastructure development will be pivotal in ensuring sustainable growth and prosperity in Ghana’s real estate market.