Property Laws

New property laws are reshaping Ghana’s luxury real estate market, with recent policy reforms and regulatory shifts causing notable changes. As the middle class expands and demand for upscale properties grows, developers are seizing opportunities while addressing challenges from new legislation. Grasping the key impacts of these legal and regulatory updates is essential for real estate professionals to succeed in Ghana’s evolving high-end market.

Key Takeaways

  • Ghana’s luxury real estate sector faces policy transitions but retains positive fundamentals.
  • Developers must adapt to longer processes and higher costs from new building codes and regulations.
  • Buyers will encounter increased prices, taxes, and paperwork requirements but limited luxury supply.
  • Working closely with legal, financial, and real estate advisors helps navigate the changing landscape.
  • Regulatory maturity and new infrastructure upgrades provide opportunities amidst near-term hurdles.

Overview of Ghana’s Luxury Real Estate Sector

  • Ghana’s luxury property sector has seen steady growth over the past decade, driven by economic expansion and a growing class of affluent professionals and expatriates.
  • Prime areas for luxury developments include Airport Residential Area, Cantonments, and East Legon in Accra, with average sales prices ranging from $80,000 to over $1 million.
  • Luxury property developers like VAAL Ghana, Clifton Homes, and Devtraco build luxurious townhouses, apartments, and mixed-use complexes to cater to upper-class demand.
  • Despite depressed global oil prices, Ghana’s property market has remained resilient, with annual price growth in the 10-20% range.

Factors Supporting Market Growth

Several key factors make Ghana’s luxury property market attractive for developers and investors:

  • Economic and Income Growth: Ghana’s economy has expanded at an average of 6% annually since 2012. Rising disposable incomes and corporate profits support demand for high-end real estate.
  • Urbanization: Migration to cities like Accra and Kumasi increases demand for residential and commercial luxury developments. Ghana’s urban population is projected to grow by over 10 million by 2050.
  • Scarcity of Luxury Developments: With limited prime locations available, luxury properties command a premium. Most developments sell out rapidly off-plan.
  • Political Stability: Ghana’s democracy and stable government provides confidence to invest and buy real estate, unlike some neighbouring markets.
  • Strong Foreign Interest: Foreign companies and expatriate buyers are a key source of demand, due to Ghana’s expat-friendly environment.

Overview of New Property Laws and Regulations

While the luxury sector is expanding, new legal and regulatory policies can create changes and uncertainty. Key updates include:

Ghana Building Code, 2019

  • Comprehensive building code regulating safety, structural standards, access, and more. It provides clear guidelines but requires adjustments for developers.

Ghana Real Estate Agency Act, 2020

  • Requires real estate agencies and agents to register and meet educational requirements. Aims to increase professionalism and transparency.

Home Ownership Act, 2020

  • Created tax exemptions and mortgage incentives to promote home ownership. Positive for mid-range buyers but limited impact on luxury market.

Property Laws Taxation

  • Amendments to property laws taxation and stamp duties aim to increase government revenue. Higher costs are passed to clients.

Land Use Regulations

  • Stricter zoning and land use laws aim to address overcrowding and infrastructure strain. Can lengthen permissions processes.

Impacts on Developers and New Projects

The evolving regulatory climate presents new considerations and potential hurdles for luxury developers undertaking new projects:

Extended Approvals and Permissions

  • Stricter zoning, building codes, and environmental regulations make obtaining planning permissions more time-consuming and costly.
  • For large projects, multiple approval stages from various authorities increase delays.

Higher Construction Costs

  • Building code requirements, environmental studies, access features, and other standards increase compliance costs.
  • Costs were further increased by the scarcity of suitable luxury construction materials and skilled labour.
  • Developers maintain profit margins by passing higher costs to buyers through elevated sales prices.

Sales and Marketing Adaptations

  • Real estate agencies require certification and licensing, necessitating adjustments to sales operations.
  • Developments must emphasise compliance with regulations to provide buyer confidence.
  • Marketing should highlight value-added features, smart home technology, and sustainability.

Shifting Area Dynamics

  • Upgrading transport links, new commercial zones and re-zoning can quickly change areas’ desirability and luxury appeal.
  • Developers must stay atop of infrastructure upgrades and master planning to identify new opportunities.

Impacts on Buying and Selling Luxury Homes

For high-net-worth clients and investors seeking luxury homes in Ghana, the evolving legal landscape also creates impacts:

Rising Prices and Reduced Inventory

  • As approvals slow and development costs increase, existing luxury inventory becomes more scarce.
  • Limited supply allows developers to achieve higher sales prices, driving up luxury home values.

Changing Area Demand Dynamics

  • New infrastructure like roads and shopping centres make previously overlooked areas more attractive.
  • Developers scramble to build luxury projects in newly desirable neighbourhoods.

More Tax Obligations

  • Higher stamp duties and property taxes add to transaction costs on luxury purchases.
  • Capital gains taxes may apply on sales of luxury homes and investments purchased after 2023.

Transaction Delays

  • Stringent documentation and verification requirements during the sales process can prolong transactions.
  • Both buyers and sellers should ensure their paperwork and financial records are in order.

Importance of Working With Professionals

  • Navigating new regulations, taxes, and processes makes professional guidance essential.
  • Experienced real estate agencies, lawyers, and tax advisors help optimise transactions.

Outlook for the Luxury Property Sector

While increased policy and regulations present near-term hurdles, the luxury real estate market still shows promising signs:

  • Strong Fundamentals: Economic strength, urbanization, and rising wealth will continue generating luxury housing demand.
  • Market Maturation: As processes adapt and stakeholders gain experience, delays, and costs should normalize.
  • Development Opportunities: New areas will emerge as Accra’s districts evolve, offering chances for planned luxury projects.
  • Resilient Prices: Scarcity of high-end homes should sustain sales price growth despite regulatory costs.
  • Investor Optimism: Confidence remains high, with foreign and domestic capital still targeting the luxury market.


Ghana’s luxury real estate sector retains bright prospects despite facing adjustments from evolving regulations and policies. By leveraging professional expertise and identifying emerging opportunities, developers, investors, and home buyers can successfully navigate the new environment. With strong tailwinds from economic expansion and urbanization supporting demand, Ghana’s luxury market remains an attractive option, especially for long-term investors.

VAAL Ghana offers prospective luxury homeowners a unique opportunity to become part of Accra’s most coveted new community. The multi-phase Harmonia Residence development features apartments. With limited availability, now is the time to benefit from VAAL Ghana’s expertise and insights during this transformational period in Ghana’s luxury real estate sector. Contact VAAL Ghana today to learn more and discuss options for joining Harmonia Residence.


What are the most desirable areas for luxury properties in Ghana?

The top areas for luxury homes and developments include Airport Residential Area, Cantonments, and East Legon in Accra. These districts offer easy access to offices, shopping, restaurants, schools and airport links while providing room for spacious homes and privacy.

How can luxury home buyers estimate future price growth in Ghana’s market?

Sales prices for luxury real estate in Ghana have grown 10-20% annually in recent years. Price growth rates are likely to remain strong but could moderate toward the lower end of that range as regulations stabilize. Investors should perform due diligence by researching historic price trends and development activity in specific districts.

What amenities and features are in highest demand for luxury buyers in Ghana?

Luxury home buyers prioritize spacious floor plans, smart home technology, high-end finishes and materials, ample outdoor space, fitness and entertainment features, security systems, and dedicated parking. Concierge services, business centres, and community events add appeal to luxury complexes.

How can luxury developers mitigate delays and cost overruns from new regulations?

Being proactive is key. Developers should engage with local authorities early in the approval process, using permitting delays as an opportunity to optimize design and engineering. Accurately estimating new compliance costs, fees, and taxes during planning reduces surprises. Using advisors and legal professionals also provides expertise for an efficient process.

What resources help navigate Ghana’s real estate regulations for foreigners and expatriate buyers?

International buyers unfamiliar with Ghana’s real estate landscape should seek experienced advisors and agents to guide the transaction. Using a reputable real estate agency reduces risks. Lawyers can assist with contracts and paperwork. Tax consultants ensure compliance and optimize costs. Embassy resources also provide useful insights for foreigners buying property in Ghana.