Today, 54% of the world’s population lives in urban areas, a proportion that is expected to increase to 66% by 2050. Projections show that the urbanization combined with the overall growth of the world’s population could add another 2.5 billion people to urban populations by 2050, with close to 90% of the increase concentrated in Asia and Africa according to a new United Nations report.
The real estate and construction industry in Ghana over the past years has seen massive boom and growth. This is attributed to the rapid economic growth of the economy. With a vibrant economy, a growing population, a sophisticated and well-educated professional class demand for all kinds of real estate development largely outstrips supply. Ghana is now classified as middle income with the population in its cities Accra and Kumasi increasing rapidly at 1.6 million and 1.2 million respectively.
The construction sector has consistently registered double digit growth bolstered by investments in real estate, improved public infrastructure, investment in the mining and the oil and gas sector. The construction sector on average registered growth rates of around 14% over 2011 to 2014 and 0is poised to maintain the same pace of growth over the medium term to 2017.
The sector is on the rise, taking advantage of increased demand for residential and office accommodation, as well as hospitality services reflecting the growth of the middle-income class. Ghana is among those African countries with a sizeable middle-class population.
For a country widely acknowledged to have moved from low-income to lower middle-income status (according to World Bank classifications), with a reputation for economic and political stability, Ghana is slowly turning into the go-to investment destination and a springboard for investors from all over the world seeking a safe haven to put their investment dollars on the African continent.
Ghana’s property development industry is divided into three (3) areas:
- The Public Sector Real Estate Development
- Emerging Private Sector Real Estate Development
- Private Individuals
The activities of these three groups are facilitated by the banks and the primary mortgage market which although at its early stages of development, has demonstrated enormous growth potential.
The Real Estate industry is however dominated mainly by:
- Commercial Real Estate Developers
- Residential Construction Firms and Private Individuals
- Property Management Companies.
This sector of the Association of Ghana Industries (AGI) is very promising and determined to grow in the years to come.