Commercial real estate in Accra

Commercial real estate refers to properties (buildings or land) used entirely to generate profit or for business purposes, it includes office spaces, warehouses, retail spaces, and industrial parks. The commercial real estate market in Ghana has grown significantly in recent years, driven by the country’s overall economic growth and increasing foreign investment. Ghana’s stable political climate, favorable business environment, and strategic location in West Africa has made it an attractive destination for multinational companies and investors seeking to expand their operations in the region.

Office buildings are an important component of Ghana’s real estate market, the key motive for office buildings is to provide a workspace for administrative and executive purposes. The demand for office space in Accra has increased in recent years, particularly in the central business district (CBD) of Accra, the capital city, driven by the country’s overall economic growth and increasing foreign investment. The CBD is the primary location for high-end office buildings, with rental rates ranging from $20 to $40 per square meter per month. Some of the notable office buildings in Accra include The Atlantic Towers, The Octagon, The Grand Oyeeman, Advantage Place and One Airport Square. The construction of new office buildings in the city is ongoing, as developers seek to meet the growing demand for office space. While the COVID-19 pandemic has led to a shift towards remote work, the demand for office space is expected to remain strong in the long term, as businesses seek to establish a physical presence in the country.

Warehouse spaces also form an important part of the commercial real estate market in Accra, as the country seeks to develop its manufacturing and logistics sectors. A warehouse is a large commercial building where goods and materials are stored, managed, and distributed. Warehouses are typically used by manufacturers, wholesalers, retailers, and logistics companies to store products and materials before they are sold or shipped to customers. The Tema Free Zones enclave, located east of Accra and North Industrial Area are major industrial hubs in the country, hosting over 300 manufacturing companies in various sectors, including textiles, Fast Moving Consumer Goods (FMCG’s), pharmaceuticals and others. There is also demand for warehouse spaces in other parts of the country, particularly in areas with a high concentration of manufacturing and distribution activities.

In addition to Warehouse spaces are Retail spaces, as the country’s middle-class population continues to grow, they drive consumer spending as well as spaces to sell and market these goods.

Retail spaces are commercial properties that are used for selling goods or services directly to customers. They can take many forms, such as stores, boutiques, shopping malls, and department stores. Retail spaces are designed to showcase and display products, and are often located in areas with high foot traffic, such as shopping districts, malls, or near transportation hubs. Shopping malls and standalone stores are the primary types of retail spaces in Ghana, with major shopping malls including Accra Mall, Marina Mall, Palace Mall, West Hills Mall, and Achimota Retail Centre. These malls offer a variety of local and international retail brands, as well as entertainment options such as cinemas, kids play areas and restaurants. The demand for retail spaces in Ghana is expected to continue to grow, driven by the country’s overall economic growth and increasing middle-class population.

An industrial park is a designated area set aside for industrial development, with infrastructure and services such as roads, electricity, and water provided to businesses operating within the park. The government of Ghana has established several industrial parks in the country, including the Tema Free Zones enclave and the Westpark industrial park in Takoradi. These parks offer a variety of benefits to businesses, including access to infrastructure and services, streamlined regulatory processes, and a supportive business environment.

The Ghanaian government has implemented several policies and initiatives to promote investment in the country’s commercial real estate sector. The Ghana Investment Promotion Centre (GIPC) is a government agency that facilitates the entry and establishment of foreign businesses in Ghana. The GIPC offers a one-stopshop service for investors, providing information on investment opportunities, assistance with business registration, and support for land acquisition. In addition to government support, there are also private sector players in the commercial real estate industry in Ghana. Despite the growth of Ghana’s commercial real estate market, there are still challenges that need to be addressed. One major challenge is the lack of reliable data on the market, which makes it difficult for investors and businesses to make informed decisions. Additionally, there is a need for improved infrastructure, particularly in terms of roads and public transportation, to support the growth of the commercial real estate sector.

In conclusion, Ghana’s commercial real estate market is an important segment of the country’s real estate industry, driven by the overall economic growth and increasing foreign investment. The market comprises of office space, retail spaces, warehouses, and industrial parks, with demand coming from both local and international businesses. The Ghanaian government has implemented several policies and initiatives to promote investment in the commercial real estate sector, while private sector players have also contributed to the development of high-end commercial properties in the country. Despite the challenges faced, Ghana’s commercial real estate market has significant potential for growth, making it an attractive investment destination for both local and foreign investors.