Real Estate Market Challenges

The luxury real estate market in Ghana is still in its infancy but shows immense growth potential. As the country’s economy expands and more high-net-worth individuals emerge, demand for upscale properties has been rising. However, developers aiming to tap into this lucrative segment face an array of challenges. Understanding and overcoming these issues will be key to unlocking the full potential of luxury real estate in Ghana.

High Cost of Construction

One of the biggest obstacles facing luxury developers is the high cost of construction in Ghana. Import duties on building materials, cost of skilled labour, licensing fees, utility connections, and other expenses make building high-end homes and apartments extremely costly. 

For instance, the cost per square meter for constructing luxury real estate can be up to $3,000. This is significantly higher than in developed markets. The result is that selling prices have to be set very high to recover construction costs and make a profit. But this puts luxury properties beyond the reach of many buyers. Developers have to get creative in driving down building costs without compromising on quality to make luxury real estate more affordable.

Limited Financing Options

Access to financing presents another hurdle in luxury real estate development. There are few lenders in Ghana focused on this niche segment. And those that do provide financing charge high-interest rates to account for perceived risks. Private equity funding is limited, while most high-net-worth individuals prefer to self-finance or pay outright rather than take out mortgages. 

The limited availability of financing options makes it harder for developers to access the capital required for luxury projects. It also constrains the pool of buyers who can afford such properties through mortgages. More affordable financing and innovative funding models are required to spur greater investment in luxury real estate.

Navigating Complex Land Policies

Land administration in Ghana is complex, with ownership and tenure rights spread across traditional authorities, private owners, and state agencies. Multiple sales of the same parcel of land are common. Developers have to carry out thorough due diligence to ascertain clean title before acquiring land for luxury projects. 

Procuring large parcels of land suitable for such developments can be an arduous process. Valuation of land also presents challenges. These land issues significantly increase project timelines and costs. Streamlining land administration policies could help attract more investment into luxury real estate.

Shortage of Qualified Labour

The specialized design, engineering, and construction expertise required for luxury projects are in short supply locally. Developers mostly have to hire foreign consultants and contractors. This drives up project costs and timelines. Even for locally available skilled labour such as electricians, plumbers, and interior designers, the pool of talent with experience in luxury finishes and fixtures is limited. Investing in vocational training tailored to high-end real estate would help address the skills shortage in the long run.

Creating Amenities and Neighborhoods

Part of the appeal of luxury properties lies in access to various lifestyle amenities like golf courses, marinas, and luxury retail. However, such amenities are largely absent in Ghana. Also lacking are master-planned communities with a holistic mix of amenities centred around luxury real estate. 

Developing amenities and neighbourhoods from scratch requires massive investment and market research. Developers also face the chicken-and-egg dilemma of whether to build residential or commercial components first. Public-private collaboration in developing infrastructure and zoning could help in creating amenity-rich luxury neighbourhoods.

Unreliable Infrastructure

Frequent power outages, water supply challenges, and poor road networks plague real estate projects in Ghana. Ensuring reliable provision of electricity, water, and accessibility is vital for luxury properties that promise a high-quality living experience. Developers may have to invest in backup generators and solar systems, boreholes, and road improvements. These significantly add to costs and undermine profit margins. Partnering with the government to improve infrastructure provision in prime luxury locations could help overcome this challenge.

Buyer Preferences for Cash Payments

Ghana has a cash-based economy, with luxury real estate transactions being no exception. Most high-net-worth buyers prefer to pay the full amount upfront rather than take out mortgages. This ties up capital for developers, constraining their ability to take on multiple projects. The limited scope for generating presales to finance construction also makes staging projects risky. Developers could offer innovative payment plans and higher presale incentives to shift buyer preferences. Overall, promoting a culture of financing home purchases is key to spurring greater investment.

Building Trust and Branding

The luxury real estate segment is still nascent in Ghana. There are few established developer brands that buyers can trust to deliver a premium product. New developers planning to enter this space have to invest heavily in building reputation and creating differentiated branding. Quality and timely delivery of early projects, strong advertising, and name recognition will be key to gaining buyer confidence. Partnering with international luxury brands also helps boost credibility.

The challenges highlighted above explain why luxury real estate remains limited despite rising demand. But the potential for growth makes it an attractive opportunity. Developers who can find innovative solutions and leverage partnerships to overcome these challenges stand to tap into substantial profits. With the right approach, Ghana’s luxury real estate segment could expand rapidly in the coming years.

Growth Potential of Luxury Real Estate in Ghana

Despite the challenges, several positive factors point to immense growth potential for luxury real estate in Ghana:

Rising High Net Worth Individuals

According to New World Wealth, Ghana has the fastest-growing number of millionaires in Africa. The country had about 3,300 millionaires in 2021, and this is projected to rise to over 6,000 by 2026. With more high-net-worth individuals, demand for luxury homes and apartments will rise.

Strong Economic Growth

Ghana has one of the fastest-growing economies in Africa, with an average GDP growth rate of over 6% expected between 2022 to 2027 according to Fitch Solutions. Rising incomes and optimism about the future among affluent Ghanaians will drive demand for luxury real estate.

Growing Expat Community

An increasing number of expatriates are relocating to Ghana for work assignments or as retirees. Many desire high-end residential properties modelled on Western designs. This expat demand presents a ready market for luxury developers.

Emergence of Luxury Brands

Global luxury brands like Porsche, Rolex, and Gucci are entering Ghana or expanding their presence. Their emergence reflects rising purchasing power and appetite for luxury. This also signifies the potential for luxury real estate.

Favorable Demographics

Over 60% of Ghanaians are below the age of 25. As this increasingly tech-savvy and affluent generation enters their prime earning years, their lifestyle aspirations will shape demand for luxury real estate.

Urbanization Trends

Internal migration and urban population growth concentrated in cities like Accra and Kumasi will increase demand for luxury properties in prime locations. Master-planned luxury communities could cater to this urban demand. By leveraging these favourable trends, developers can unlock the vast potential of luxury real estate in Ghana and reap substantial rewards.

Case Study: VAAL Ghana’s Harmonia Luxury Development

A prime example of a developer making inroads into Ghana’s luxury real estate market is VAAL Ghana. The company is currently developing Harmonia Residence, a luxury project located in the Airport West Residential Area, Accra. The project offers stylish 1, 2, 3, and 5-bedroom apartments as well as exclusive penthouses. Units combine modern interior design with smart home automation.

Located just 15 minutes from Kotoka International Airport, the project promises an ultra-convenient lifestyle. Residents have easy access to Accra’s business hubs, retail outlets, restaurants, and diplomatic enclaves. The development includes green spaces, a clubhouse, a gym, and a pool. Prices range between $250,000 to $1,200,000, targeting affluent Ghanaians, expatriates, and diaspora seeking a prestigious Accra address. The project is 6 months ahead of schedule for handover in Q4 2024.

By assembling a prime location, developer reputation, and luxury amenities, VAAL Ghana aims to establish Harmonia Residence as a landmark development that sets a benchmark for Ghana’s high-end real estate. Its model offers key lessons for luxury developers seeking to navigate Ghana’s complex real estate terrain and deliver world-class properties catering to the aspirations of the country’s elite.


Ghana’s luxury real estate segment faces several challenges like high costs, land constraints, funding gaps, and infrastructure deficits. However, bullish economic prospects coupled with rising demand from high-net-worth Ghanaians, expatriates, and the diaspora community point to strong growth potential. By getting the product, positioning, and partnerships right, developers can overcome complexities to deliver successful world-class luxury properties. VAAL Ghana’s Harmonia Residence is pioneering this path as a flagship luxury development coming up in Accra, setting an example for other players to push the frontiers of opulence living in Ghana.


  • What amenities does Harmonia Residence offer?

Harmonia Residence offers a premium selection of amenities including a gym, swimming pool, clubhouse, green spaces, smart home automation, 24/7 security, and more.

  • What property types are available at Harmonia Residence?

Harmonia Residence offers stylish 1, 2, 3 & 5-bedroom apartments as well as exclusive penthouses combining modern and luxurious living.

  • Where is Harmonia Residence located?

Harmonia Residence enjoys a prime location just 15 minutes from Kotoka International Airport in the Airport Residential Area, Accra.

  • Who is the developer behind Harmonia Residence?

Harmonia Residence is being developed by VAAL Ghana, in partnership with renowned international developer Ashdar.

  • What payment plans are available for buying property at Harmonia Residence?

VAAL Ghana has partnered with Ghana Home Loans to offer mortgage financing options to buyers at Harmonia Residence. Payment plans can be customized along with the mortgage.