Rental Property Investment

If you’ve been keeping an eye on the African real estate scene, you’ve likely noticed a buzz surrounding Ghana. What was once a relatively quiet investment landscape has now transformed into one of West Africa’s most compelling real estate stories. As we navigate through 2025, Ghana’s rental market is not just growing; it’s thriving, attracting savvy investors from both local and international fronts.

The data paints a clear picture. Urban centres like Accra are experiencing an unprecedented demand for quality rental properties, while yields in prime locations are outpacing traditional investment vehicles. What’s particularly fascinating is the diverse range of investors drawn to Ghana, including a significant surge from the diaspora.

So, what’s fueling this surge, and how can you position yourself to capitalize on these lucrative opportunities? Let’s delve into Ghana’s rental market dynamics and uncover the strategies that are delivering real returns for property investors.

What’s Fueling Ghana’s Rental Property Boom?

The transformation of Ghana’s rental landscape didn’t happen overnight. Several powerful forces have converged to create a perfect storm for property investment.

Urban Migration Reaches Tipping Point

Ghana’s urbanisation story is remarkable. Over 61% of the population now calls urban areas home, with this figure climbing steadily each year. In Accra, this demographic shift is evident in the city’s expanding neighbourhoods. Young professionals are flocking to the capital for career opportunities, creating an insatiable demand for modern apartments and townhouses. Areas like Airport Residential and Ridge have become particularly sought-after, with rental properties often snapped up before they even hit the market properly.

The Rising Middle-Class Effect

Ghana’s middle class is not just expanding; it’s becoming increasingly sophisticated in its property choices. Higher disposable incomes mean tenants can afford and actively seek properties with premium amenities. Today’s renters want fitness centers, swimming pools, 24-hour security, and modern finishes. This shift has created a sweet spot for investors. Properties that tick these boxes command significantly higher rents and enjoy virtually zero vacancy periods. Landlords in areas like Cantonments report waiting lists of prospective tenants for quality apartments.

Diaspora Investment Momentum

Perhaps the most exciting development is the surge in diaspora investment. Ghanaians living abroad are increasingly viewing property investment back home as both a financial opportunity and an emotional connection to their roots. Improved mortgage products and remote buying processes have made this market more accessible than ever. This group is often less price-sensitive and more focused on quality and location, which drives up rental yields in premium developments.

Tourism and Short-Let Opportunities

Ghana’s growing reputation as a business and leisure destination has created a parallel short-let market that’s proving incredibly lucrative. Properties near Kotoka International Airport, for instance, are commanding premium rates from business travellers and tourists who prefer apartment-style accommodation over traditional hotels. Well-positioned short-let properties can achieve yields 20-30% higher than traditional long-term rentals, though they do require more active management.

Understanding Rental Yields: The Ghana Context

Let’s talk numbers. Gross rental yield is your annual rental income divided by the property’s purchase price, expressed as a percentage. Net rental yield, which factors in ongoing costs like maintenance, property management, and taxes, gives you the real picture of your investment’s performance. For instance, a two-bedroom apartment in Airport Residential purchased for $200,000 with a monthly rental income of $1,800 yields a gross yield of 10.8%. After deducting annual expenses of roughly $3,000, the net yield remains a healthy 9.3%.

In Ghana’s current market, gross yields of 8-11% in prime Accra locations represent strong performance. Properties in established neighbourhoods like East Legon, Cantonments, and Ridge consistently deliver yields in this range, while also offering capital appreciation potential of 8-10% annually. Anything below 4% should raise red flags, and yields exceeding 12% warrant careful investigation. Location-specific performance is crucial; areas like Airport Residential, Ridge, and Cantonments have their unique strengths that attract specific tenant demographics.

Factors That Make or Break Your Rental Returns

Location Remains King: 

Proximity to major employers, international schools, and quality healthcare facilities is paramount. Security is also a significant factor, with tenants willing to pay premium rents for safe neighbourhoods.

Property Type and Target Market Alignment: 

Different property types serve different markets. Luxury apartments appeal to expatriate professionals, while family townhouses attract established professionals with children.

The Condition Advantage: 

Well-maintained properties with modern fittings command significantly higher rents. Tenants expect air conditioning, reliable water supply, backup power systems, and quality finishes as standard.

Economic Tailwinds: 

Ghana’s relatively stable economic environment supports rental demand. Job growth and foreign investment create a steady stream of professionals seeking quality accommodation.

Strategies for Maximising Your Rental Returns

Focus on Prime Locations with Growth Catalysts: 

Target areas experiencing infrastructure improvements or benefiting from new developments. Don’t chase the cheapest prices; chase the best value in locations with clear demand drivers.

Embrace Property Management: 

Professional property management often pays for itself through higher occupancy rates and better tenant screening. It’s particularly valuable for diaspora investors seeking passive income.

Consider Mixed-Use Opportunities: 

Properties in developments offering retail, office, and residential components often achieve premium rents.

Stay Market-Responsive: 

Monitor rent levels quarterly and adjust accordingly. Building strong relationships with local estate agents provides valuable market intelligence.

Navigating the Risks

Currency fluctuations, inflation, and legal considerations are some risks to be aware of. Work with reputable law firms and research developers carefully.

Conclusion

The current market offers a significant window of opportunity for rental property investment in Ghana. Urban rental demand continues to grow, while supply in prime locations remains constrained. But markets evolve quickly, so staying informed and acting strategically is key. For those considering their options, exploring prime developments with expert guidance can lead to optimal rental returns.

Frequently Asked Questions

  • What rental yield should I expect from a property investment in Accra? 

Prime locations in Accra typically deliver gross rental yields of 8-11%, with net yields ranging from 6-9%.

  • How does diaspora investment work for Ghanaians living abroad? 

Many developers offer remote buying processes and property management services.

  • Are short-let properties more profitable than traditional rentals? 

Short-let properties can achieve 20-30% higher yields but require more active management.

  • What ongoing costs should I budget for rental property investment? 

Budget approximately 15-20% of gross rental income for expenses like property management, maintenance, and taxes.

  • How important is professional property management for rental success? 

Professional management often pays for itself through higher occupancy rates and better tenant screening.

This overview provides a solid starting point for anyone considering investing in Ghana’s thriving rental property market. Remember to conduct thorough due diligence and seek expert advice to make informed decisions.