Accra Real Estate Market Report Q1 2015

ACCRA REAL ESTATE REPORT Q1/15 .com.gh

ACCRA REAL ESTATE MARKET REPORT Q1 2015

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ACCRA REAL ESTATE REPORT Q1/15

REGIONAL CONTEXT

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ACCRA REAL ESTATE REPORT Q1/15

COSTS OF LIVING Accra’s property sector growth is robust. With a median house purchase price of roughly €58000 per bedroom, and a median apartment rental price of over €900 per bedroom per month, the city’s real estate

Accra

market is expensive in a country where annual GDP per capita is less than €1700.

N’Djamena Chad

Nonetheless, it is not nearly the most costly city in its region. In Lagos, for example, the median house purchase price was about €60000 per bedroom and the median monthly apartment rental price hovered around €2500 per bedroom, according to Lamudi Nigeria’s Q1 report.

Conakry Guinea

Lagos Nigeria

In broader context, Accra has the 62nd highest cost of living in the world, according to the 2015 Mercer “Cost of Living City Rankings” report . Consistent with growing real estate costs, the city jumped from 128th to 62nd place between 2014 and 2015. However, other West African cities, including Luanda (1st

Kinshasa DR of the Congo

Luanda Angola

place), N’Djamena (10th), Kinshasa (13th), Lagos (20th), and Conakry (22nd), scored far higher.

“

The implications of this information for expatriates and investors looking for a professional, leisure, investment, or family outpost in Africa

Accra remains an

suggest that Accra, while it has seen rising real estate costs, remains an attractive, stable, and generally affordable location full of amenities and

attractive, stable, and

a wide variety of properties.

affordable location 3

ACCRA REAL ESTATE REPORT Q1/15

ACCRA OVERVIEW

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ACCRA REAL ESTATE REPORT Q1/15

PROPERTY TYPE SUPPLY AND DEMAND 3.2%

41.6%

1.9%

32.2%

Supply

Demand

39%

23% Apartment buy

House buy

30% Apartment rent

House rent

5

29.1%

ACCRA REAL ESTATE REPORT Q1/15

MEDIAN PRICES Median rent (monthly)

Median rent (monthly)

€ 879.9

€ 549.94

Median buy

Median buy

€ 117 320.24

€ 143 995.09

Apartment (per bedroom)

House (per bedroom)

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ACCRA REAL ESTATE REPORT Q1/15

SALES PRICES IN ACCRA

Trassacco Adjiringanor Dzorwulu

Apartments (per bedroom) Most to least expensive

East Lagon

Airport

Tesano

Location

Median Price

Deviation

Accra Median

117 320,24 €

0.00%

Cantonments

Cantonments

131 985,27 €

+12.50%

Labone

Airport Residential

127 585.76 €

+8.75%

Ridge

117 320.24 €

0.00%

Dzorwulu

102 655.21 €

-12.50%

East Legon

79 191.16 €

-32.50%

Houses (per bedroom) Most expensive

Dansoman

Airport Residential

Least expensive

Most expensive

Houses (per bedroom) Least expensive

Location

Median Price

Deviation

Location

Median Price

Deviation

A wide disparity exists between median prices in affordable and ex-

Accra Median

58 660,12 €

0.00%

Accra Median

43 995.09 €

0.00%

pensive neighborhoods in Accra, indicative of a stratified real estate

Trassacco

167 181.34 €

+185.00%

Kasoa

17 500.00 €

-60.22%

sector that lacks a substantial supply of moderately priced homes. The

Airport Residential

161 315.33 €

+175.00%

Dansoman

21 000.00 €

-52.27%

market contains many outliers, both high and low.

Cantonments

150 840.31 €

+157.14%

Kwabenya

21 000.00 €

-52.27%

Labone

149 583.30 €

+155.00%

Nungua

25 200.00 €

-42.27%

Dzorwulu

130 230.00 €

+137.35%

Ashongman

26 397.05 €

-40.00%

Airport Hills

114 387.00 €

+95.00%

Adenta

26 397.05 €

-40.00%

Tesano

93 856.19 €

+60.00%

Madina

29 916.66 €

-32.00%

East Legon

87 990.18 €

+50.00%

Taifa

30 796.56 €

-30.00%

Adiringanor

87 990.18 €

+50.00%

East Legon Hills

32 996.32 €

-25.00%

East Airport

87 990.18 €

+50.00%

Oyibi

36 680.00 €

-16.63%

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Access to affordable housing in prime neighborhoods is lacking, so the construction of less costly houses would represent a market opportunity.

Furthermore, locations with low median prices might present opportunities for developers to build affordable, attractive properties in bulk.

ACCRA REAL ESTATE REPORT Q1/15

IN COMPARISON You can buy 1.67 apartment

You can buy 9.5 house bedrooms in

bedrooms in East Legon for the

Kasoa for the price of one in Trassacco.

price of one in Cantonments

=

Cantonments

=

East Legon

Trassacco

8

Kasoa

RENTAL PRICES IN ACCRA

ACCRA REAL ESTATE REPORT Q1/15

Adjiringanor Achimota

Airport West Airport

The rental market is the largest component

Airport Residential

of Accra’s real estate sector. 69% of Lamudi Cantonments

Ghana’s search traffic involved rentals, compared to only 64% of listings. In areas like Ridge,

Labone

Airport Residential, and Cantonments, building

Ringway Estate

low-cost apartments could constitute a robust opportunity.

Least expensive

North Ridge

Most expensive

West Ridge

Houses (per bedroom) Most expensive

Houses (per bedroom) Least expensive

Apartments (per bedroom/month) Most expensive

Apartments (per bedroom/month) Least expensive

Location

Median Price

Deviation

Location

Median Price

Deviation

Location

Median Price

Deviation

Location

Median Price

Deviation

Accra Median

549.94 €

0.00%

Accra Median

549.94 €

0.00%

Accra Median

879.90 €

0.00%

Accra Median

879.90 €

0.00%

Ringway Estates

1 231.86 €

+124.00%

Haatso

175.98 €

-67.63%

Airport City

1 173.20 €

+32.96

Adiringanor

307.97 €

-65.01%

Ridge

1 099.88 €

+100.00%

Lashibi

205.31 €

-62.22%

Airport Residential

1 114.54 €

+26.31%

West Legon

307.97 €

-65.01%

North Ridge

1 099.88 €

+100.00%

Achimota

219.98 €

-59.27%

North Ridge

1 055.88 €

+19.66%

Achimota

315.00 €

-64.30%

Airport West

1 099.88 €

+100.00%

Adenta

219.98 €

-59.27%

Cantonments

1 026.55 €

+16.34%

Spintex

351.96 €

-60.11%

Cantonments

1 055.88 €

+92.00%

Spintex

263.97 €

-51.43%

Ridge

1 026.55 €

+16.34%

East Airport

410.62 €

-53.47%

Airport Residential

1 026.88 €

+86.67%

Nungua

299.17 €

-44.96%

Aiport West

1 026.55 €

+16.34%

Dzorwulu

659.93 €

-25.21%

Airport City

989.89 €

+80.00%

West Legon

307.91 €

-43.34%

West Airport

1 026.55 €

+16.34%

East Legon

659.93 €

-25.21%

West Airport

879.90 €

+60.00%

North Legon

351.96 €

-35.24%

Osu

945.00 €

+7.09%

Tesano

733.25 €

-16.90%

Roman Ridge

879.90 €

+60.00%

East Airport

439.95€

-19.10%

Abelenkpe

879.90 €

0.00%

Labone

879.90 €

0.00%

Labone

791.91 €

44.00%

Adiringanor

439.95€

-19.10%

Labone

879.90 €

0.00%

Abelenkpe

879.90 €

0.00%

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ACCRA REAL ESTATE REPORT Q1/15

IN COMPARISON You can rent 3.8 apartment bed-

You can rent 7 house bedrooms per

rooms per month in Adiringanor

month in Haatso for the price of one

for the price of one in Airport City

in Ringway Estates

=

Airport City

=

Adiringanor

Ringway Estates

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Haatso

ACCRA REAL ESTATE REPORT Q1/15

SUPPLY & DEMAND Supply and demand were largely consistent between months, indicating that the market did not see any major shocks during the first part of 2015.

Demand buy The preeminence of house rentals indicate that as a result of large family sizes - the national average fertility rate hovers

Supply

around four children per woman - and an expensive market for Demand rent

buying houses, Ghanaian property hunters are eager to find accommodations that meet both their familial and economic needs. The high cost of housing, mortgage interest rates between 15 - 30%, and the rapid depreciation of the cedi, however, have discouraged many people from buying homes.

Demand buy

Abelenkpe, Adiringanor, and West Legon were three locations with an oversupply of properties and a comparative lack of demand. Average house rental prices in Adiringanor fell almost

Supply

20% below the city median, and that apartment rentals in the same location deviated about 65% below Accra’s median.

Demand rent

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ACCRA REAL ESTATE REPORT Q1/15

SUPPLY & DEMAND Spintex

4.531%

East Legon

21.667%

Cantonments

Spintex

44.122%

4.431%

11.441%

65.477%

Other regions

Airport Residential

East Legon

Other regions

3.588%

8.624%

Dzorwulu

Most heavily

2.395%

Most heavily

demanded

supplied

Cantonments

6.460%

locations

Trassacco

locations

2.091% Labone

1.420%

Dzorwulu

5.408%

Osu

3.884%

Adiringanor

1.866%

Achimota

1.539%

0.461%

Airport Hills

3,443%

Abelenkpe

1.551%

1.999%

Airport Residential

Labone

Airport Hills

1.720%

Osu

1.882% 12

ACCRA REAL ESTATE REPORT Q1/15

MARKET PRESSURE Achimota

9.1:1

Major market pressures existed in Trassacco, where

Dzorwulu

4.5:1

East Legon

3.8:1

Trassacco

42.1:1

there were over 42 times more properties demanded than were available. While this location was an outlier, there were other areas with major demand pressures, including Labone (10x), Achimota (9x), and Osu (7x).

The shortage of properties in these areas constitute an opportunity for developers and agents to build and advertise residential properties.

Airport

Similarly, there were 8.4 times more rental apartments

Airport Residential

3.6:1 3.6:1

demanded than supplied citywide.

Cantonments

4:1

Labone

10.2:1 Osu

7.2:1

“

Ratio

Trassacco has 42

Demand:Supply

times more demand than supply 13

ACCRA REAL ESTATE REPORT Q1/15

METHODOLOGY & DEFINITIONS

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ACCRA REAL ESTATE REPORT Q1/15 Data for this report were collected from Janu-

Locations:

location on Lamudi Ghana’s website. The data were pro-

ary to May 2015, representing searches, list-

The original data included information on locations

vided for each month from January to May. This infor-

ings, prices, and properties for the first quarter

within the Greater Accra Region. In order to standard-

mation was aggregated to find overall supply levels for

of that year. Over the course of this period, this

ize information for the purposes of this report, only

the first quarter, including total number of listings per

information was logged and a detailed list of

locations within the Accra Metropolitan Assembly (AMA)

location and proportion of overall listings each location

property listings, searches, and median prices

were included. Locations within Tema, such as Commu-

represents.

was received from Lamudi’s Berlin headquar-

nity 20 and Sakumono, were excluded

ters for the completion of this report.

from the report.

Timing:

Originally, certain locations had multiple designations or

As prices were collected between January and May 2015,

spellings. For example, several spellings of the loca-

the currencies reflected in this report may retain differ-

tion “Trassacco” existed in the original data, including

ent values than they did upon the collection of data. As

“Trassaco,” “Trasacco,” “Trasaco,” and “Trassaco Estates.”

of 19 June 2015, €1= GHS4.99, according to

Original data from all of these locations were reviewed,

www.exchange-rates.org .

retabulated, and synthesized under the heading “Tras-

Median Prices: For apartment and house purchase represent cost (in euros) per bedroom.

For apartment and house rental represent cost (in euros) per bedroom per month. Originally, the data from Berlin were provided in terms of yearly rental price per bedroom. To find monthly rental price per bedroom, the original prices were divided by 12.

sacco.”

However, in January, the rate was €1= GHS3.79; in Febru-

Mean (ASverage) Prices:

ary, €1=GHS3.89; in March, €1= GHS3.95; in April,

Property Demand:

€1= GHS4.15; in May, €1= GHS4.42. The rapid depreci-

Is measured by the number of online searches per

ation of the cedi has made collecting accurate prices a

location. The data were provided for each month from

challenge.

January to May. This information was aggregated to find overall demand levels for the first quarter, including

Sample Size:

total number of searches per location and proportion of

It is worth noting that only locations with a total number

overall searches each location represents.

of searches and listings of n ≥ 10 were included in data discussed in this report. Including locations with a small-

Property Supply:

er sample size would have skewed the data.

Is measured by the number of properties listed for each

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Were not used in this report. Several extreme outliers, both high and low, would have skewed the mean.

The Deviations: Were computed to reflect the percentage above or below the city median each location median falls, with city (base) median deviating 0%.