10 Best Places To Buy Land In Ghana

The real estate sector in Ghana has expanded over the years, contributing 10.5% of the country’s GDP growth in 2021. This is due to an increase in the number of developers operating in the mid-high-end segments, the arrival of immigrants, and the influx of foreign investors in the country.

A 1.8 million housing deficit means the demand for real estate in Ghana is still huge. The Ghanaian government has worked hard to reduce the figure from 2.8 million. This shows the country’s active real estate market and presents an investment opportunity with good returns. 

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Real estate helps provide value to Ghanaians and foreigners looking to settle down in Ghana. With Ghana’s infrastructural development, safe business climate, and growing international appeal, the real estate sector will continue thriving.

Before running off to buy land in Ghana, it is important to have an overview of the profitability and policy framework of real estate in Ghana. This article will do just that. Without further ado, let’s jump right in.

Can a foreigner own land in Ghana?

Technically, the constitution of Ghana does not allow foreigners to own a piece of land. Article [266]{1} of Ghana’s constitution reiterates that “no interest in, or any right over, any land in Ghana shall be allowed which vest in a person who is not a citizen of Ghana to hold any interest in any land in Ghana.” 

Therefore, all deals that seek to allow land ownership rights to a foreigner are believed to be unlawful. However, instead of buying land in Ghana, foreigners can lease land in Ghana for a specific period. 

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Article 266[4] of the Ghana constitution states that non-citizens have a right to lease land for a period not exceeding fifty years at any time. The most exciting news is that foreigners can renew their lease after expiry.

Factors to consider when buying land in Ghana

There are certain factors you need to consider before buying land in Ghana. We will look at these factors in detail below.

Development opportunity

It’s no secret that some people buy plots of land to resell later. However, a good number do so with the thought of either developing it into their homes or commercial properties. It is usually highly profitable to buy land to resell later for those who can afford the long wait.

Location

The location or zoning of land is an essential consideration to make before you buy land in Ghana. Depending on the purposes, it’s well known that land for residential purposes is best suited in quiet areas while those for commercial purposes are best suited in busy areas.

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Access to basic and social amenities

Basic amenities and social amenities are important factors to consider when buying a piece of land. Without these amenities, living or working in such locations may become increasingly expensive since you may have to provide them yourself. Other factors to consider are the proximity of social amenities like schools, police stations, markets, roads, etc.

Ownership status of the land

In Ghana, lands are owned by the government, chiefs, and indigenous families. To ensure legal transfer of ownership, only buy from the person with jurisdiction over the land.  This can save you future litigation and unnecessary financial drain.

Legal document of the land

All legal documents should be checked and confirmed when buying land to avoid future disputes. Legal documents such as partition deeds, succession certificates, wills, sales, deeds, gift deeds, and Government orders for grants should be checked and confirmed before buying the land.

Inquire from the Collateral Registry

It is also essential to search for the collateral registry to know if the land has been used for collateral purposes.

How much does an acre of land cost in Ghana?

Accra’s average land price is GH₵20,000 ($2,319) per plot. The most expensive is known to be around GH₵108,000 ($12.522) per plot, while the cheapest will cost you about GH₵9,180 ($1,064) per plot.

In Kumasi, the average price of land is ₵152,167 ($17,643), the cheapest land is₵28,000 ($3,246), and the most expensive will cost ₵410,000 ($47,536). 

These rates can differ depending on the area, like how concentrated it is, the presence of basic amenities, industrial clusters, etc.

Do foreigners pay tax on land in Ghana?

Non-resident individuals are generally taxed at a flat rate of 20%. But, different tax rates may apply, depending on the individual income classification. Rent income from leasing properties is subject to a 15% final withholding tax.

Local authorities levy an annual tax on all the estimated value of the individual property, depending on the classification of the area in which the land is located. The annual levy varies from 0.5% to 3%.

Best places to buy land in Ghana

With rich natural resources, a big labor market, and a solid infrastructure, Ghana is one of the best places to buy land in Africa. No wonder many people view the country as a center for property investment. But where should you look? 

The answer to that question is not set in stone. It all depends on why you are looking and some of the other factors we mentioned earlier. Have a look. 

Commercial Purposes

Perhaps, you want to build office space for your business or want to set up your manufacturing plant. Here are the places that are highly recommended. 

#1. Hohoe

Hohoe city is located in the Volta Region and is home to tourism. The city has many beautiful landscapes and eco-tourism, making it one of the best tourist areas in the country. 

The Volta region has many primary and social amenities for commercial purposes. It is always bustling with activities in different tourist centers. This area is suitable for commercial buildings. This is one excellent place to buy land in Ghana

#2. Kasoa

Kasoa, formerly called Odupongkpehe, is an urban town in the Awutu Senya East Municipal District of the Central region of Ghana. This city is one of the busiest in the country. 

Kasoa has one of the most prominent markets in the Awutu-Senya District. This city is one of the best areas to buy land for commercial reasons. 

#3. Accra

Accra is the capital of Ghana. Accra is Ghana’s largest city and administrative, communication, and economic center. With all these factors, Accra City is one of the best places to reside due to its basic amenities, job opportunities, etc. 

#4. Kumasi

Kumasi is the capital city of the Ashanti region in southern Ghana. It’s been known as the center of Ashanti culture. Being billed as the Garden city of West Africa, Kumasi is zoned into commercial, industrial, and residential areas.

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Residential Purposes

These are some of the areas best fit for residential purposes, having possessed all the necessary facilities needed for a residential area. Their presence in the capital city of Ghana, Accra, is an added advantage.

#5. Amasaman

Amasaman is a suburban area of Accra, the capital city of Ghana. This area is suitable for residential purposes. It is a developing area, and the land in this area is affordable. This makes Amasaman one of the best places in Ghana to choose for residential purposes.

#6. East Region

The Eastern Region is in south Ghana. It is one of the sixteen administrative regions of Ghana. This region and its environment are suitable for residential purposes but are usually more expensive than other regions.

Industrial Purposes

These areas can be considered for industrial purposes due to the localization of industries. This makes it easier to find an accessory industry that can support your industry’s growth at a reduced cost.

#7. Takoradi

Takoradi is also known as Ghana’s oil city. Takoradi is the central export hub for many of Ghana’s resources. These factors make Takoradi an excellent city to look out for when getting a piece of land for industrial purposes in the country.

#8. Tamale

Tamale is another place to consider when getting land for industrial purposes. The city is in northern Ghana and is the eye of the region. Being the second largest when it comes to land mass, Tamale is a perfect region for industrial settlement, and the lands in this area are pretty affordable.

#9. Ningo Prampram

The Ningo-Prampram constituency is one of the constituencies that are well-represented in the parliament in Ghana. Lands in the Ningo Prampram area are pretty affordable compared to other parts of the country. 

In addition, it’s located in the capital of Ghana, making it a good choice for those who want to buy land for industrial purposes.

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#10. Tema

Tema city is nicknamed the “Harbour City” because of its status of having Ghana’s largest seaport. Furthermore, Tema City has 25 different communities, each having access to basic amenities. This makes Tema City a perfect place to reside for individuals thinking of relocating to Ghana.

Conclusion

Buying land has always been a form of investment. However, the increasing population has made buying land in Ghana or other African countries more profitable. There is a constantly rising need for developers to create more homes. 

The real estate sector plays a considerable role in Ghana’s economy. It contributes 8-10% to the country’s GDP. Apart from being one of the largest employment creators, this sector will have a significant role in the socio-economic impact on the economy in years to come.