2022 Accra Pipeline Report - By Estate Intel

2022 Accra Pipeline Report - By Estate Intel

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Summary

Often regarded as the soft landing into West Africa, Ghana’s relatively stable economic policies and tourist-friendly tone make it an ideal choice for new investors. Accra, her largest city, is the focus of our sophomore Real Estate Pipeline publication, where we have chosen to discuss property sectors including Retail, Office, Residential and Hospitality.


As Africa’s 8th largest economy, GDP is expected to grow 6.1% in 2022, up from 4.17% in the previous year, and is still benefiting from the boost in global affinity that the ‘Year of Return’ created. In April however, the Bank of Ghana issued a rigid US Dollar restrictive circular akin to her Nigerian counterpart in a bid to defend the Cedi, which has slipped by 31.1% against the US Dollar in the past 12 months.


The currency devaluation has led to challenges that include but are not limited to, an increase in construction costs and slowed project financing. This has resulted in a deceleration in different sectors such as Accra’s hospitality pipeline, where up to 70% of pipeline projects are on hold. In other sectors including office, these challenges only amplified an existing slowdown created by the COVID-19 pandemic.


As we mentioned in our previous note, we enjoy taking a city-by-city approach to analyse real estate markets, because of the peculiarity of individual markets within a country. Even though there are underlying themes that are applicable nationwide such as extreme dependencies on natural resources, increasing inflation or unstable governance, each city’s population dynamic, earning capacity and economic drivers create different responses. This is even more interesting to observe when comparing cities like Lagos, with Accra, Cairo, Nairobi or even Lusaka.


As always, digest and let my team know what you think directly via [email protected], all feedback (including corrections) is welcome. If you are interested in understanding African real estate markets on a deeper level, reach out to us!



Source: Estate Intel

Published: 2022

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