Inside Real Estate with Jolanda Castagna- Episode 2: Accra’s apartment boom: A clear-eyed look at who’s buying and why?

Accra’s skyline is changing, driven largely by the rise of high-density apartment developments in the city’s main residential areas. This discussion refers specifically to these high-rise projects, which are largely positioned as investment properties rather than first homes. This raises a basic question: who is buying these units? The more important follow-up questions are how buyers do so safely, and what comes next.

The answers are grounded in demand behaviour, identifiable buyers and a clear view of where opportunity lies in a market where trust is central. As supply increases in these core locations, success for both buyers and developers depends on managing risk, understanding competition and planning for long-term relevance.

It is important to separate this from what is happening outside Accra’s core. In the outer residential belt, private homes and first-time owner-occupied properties are being developed at a fast pace, reflecting genuine housing demand. That segment, however, is not the focus here. The analysis that follows centres on investment-led apartment developments within the city’s established residential neighbourhoods.

Location remains the defining factor. Most high-rise apartment construction is concentrated in secure, well-established areas such as Airport, Cantonments, Labone and East Legon. These areas benefit from functioning infrastructure, reliable utilities and proximity to international schools and commercial centres. In this context, apartment development is a rational response to investment demand, not speculative expansion.

The buyer base in these locations is led by experienced Ghanaian investors who understand local market dynamics and view prime-area apartments as a relatively stable investment. They are complemented by expatriate buyers, particularly from Nigerian, Lebanese and Indian communities, who remain active participants in this segment of the market.

The diaspora remains an important part of the buyer mix, but its scale is often overstated. There is no reliable public data showing what proportion of newly-built apartments are purchased by diaspora buyers. What is clearer, however, is the nature of their demand. Diaspora purchases tend to focus on compact studios and one-bedroom units, typically acquired for flexibility, occasional use or rental income rather than as primary family residences.

A critical, often overlooked, layer is the structure of supply. A substantial portion of new units, estimated at 30 percent, originate from joint-venture agreements where landowners receive apartments in exchange for land value.

Another approximate 10 percent may come from barter arrangements with key material suppliers. These units form part of the available stock but are not driven by traditional buyer demand, which is a crucial distinction when assessing true market absorption.

This brings us to the central question: is Accra overbuilding? A more accurate way to describe what is happening is that many buildings are becoming outdated. As newer, better-designed projects come onto the market, older buildings with weaker layouts, limited amenities or poor management face stronger competition.

Tenants and owner-occupiers naturally move toward better options, which puts pressure on rents and resale values of older properties. This is not a collapse in demand, but a reshuffling of the market, where older properties may become more attractive to a more price-sensitive group of renters or buyers.

Therefore, absorption will happen, but unevenly. New projects must earn their price through quality and location, while older buildings must reposition or reprice to stay relevant.

Looking at buyer behaviour shows a clear pattern. Despite a growing middle class, apartment prices in prime areas remain out of reach for most middle-income households. This is driven largely by the absence of a functional mortgage market and interest rates that are simply not accessible.

Consequently, most purchases are investment-led, aimed at generating rental income or preserving wealth in a tangible asset. Apartments are seen as a hedge against inflation, with end-user occupation typically occurring later through the rental market, not direct ownership.

The recent appreciation and relative stability of the cedi has added another layer to the discussion. For developers, a stronger cedi – moving from around 15 to closer to 10 against the US dollar – has reduced the local cost of imported materials, easing some construction pressures. At the same time, it has reduced cedi-denominated revenues on dollar-priced sales, offsetting much of that benefit and leaving margins largely unchanged rather than improved.

For buyers, particularly those operating within the local cash economy, real estate remains a preferred method to convert liquidity into a stable, income-generating asset.

However, reduced currency volatility has lessened panic-driven purchases. Today’s buyers are more selective, prioritising fundamentals: location, pricing, quality, value and rental viability. This selectivity is intensified by the city’s infrastructural challenges. Traffic and lengthy commutes have made location and convenience critical priorities. Convenience is no longer a luxury but a form of risk management.

Buyers increasingly factor in the cost of time and stress, favouring locations that provide reliable access to schools, healthcare, workplaces and major transport routes. This practicality, more than lifestyle aspiration, defines the modern buyer. A growing segment of the middle class is opting for proximity to the city centre, tolerating current infrastructure gaps in developing fringe areas in anticipation of future improvements.

The critical role of trust and due diligence

As buyers become more cautious, trust now plays a central role in decisions. Buyers, especially in prime locations, are more research-driven and less willing to rely on assumptions. This shift favours established developers with a proven delivery record, clear land documentation and a reputation for reliability. Track record is no longer a nice-to-have; it is a deciding factor.

Most market failures and disputes are linked to new or inexperienced entrants who underestimate the immense financial, technical and regulatory complexity of development or real estate. Without proven execution, even well-designed projects can stall. For this reason, trust in the developer often matters as much as the asset itself.

Buyers actively seek evidence – completed projects, consistent timelines and credible partnerships over promises.

This scrutiny is a necessary response to persistent risks. Key red flags for buyers include: sites stalled at the structural stage for prolonged periods; payment plans demanding large upfront sums rather than instalments tied to construction milestones; and developers unable to provide a complete, verifiable set of ownership, planning and sales permits.

Before committing, informed buyers ask essential questions: Can the full land title and ownership documents be independently verified? Which previously completed projects can I inspect? What is the developer’s market reputation? What is the detailed, milestone-based construction schedule? How are payments structured in direct relation to visible on-site progress?

While awareness has increased, vulnerability persists. Scams remain frequent, especially in less regulated or rapidly developing areas, highlighting that vigilance, not just interest, is required.

The quality imperative in a competitive market

With numerous projects vying for attention, standing out requires substance over spectacle. Competition has improved quality and professionalism in segments of the sector, with more sophisticated projects emerging.

However, this progress is not uniform. The market now shows a growing divide between excellence and mediocrity, where stronger construction quality standards, thoughtful design and good finishing coexist with projects hampered by poor planning and weak execution.

In this competitive landscape, flashy designs and glossy brochures can attract attention, but they are insufficient to secure a sale or ensure long-term success. The inherent risk is a delivery gap, where the finished product fails to match the promised quality, layout or timeline.

The developments that will truly stand out are those differentiated by substance: construction quality that withstands time, efficient layouts that add real value, and a credible plan for long-term management and maintenance. These are the features that secure lasting value.

For newer entrants to the sector – particularly those without a deep understanding of Ghana’s real estate dynamics or those approaching development as a side venture, common challenges include weak cash flow management, insufficient planning and fragile project governance.

These factors often contribute to stalled or delayed projects. The most effective mitigation is engaging competent consultants from the outset: professionals able to manage design, budgeting and construction holistically, while safeguarding the developer’s interests.

Conclusive guidance for market participants

For first-time buyers navigating this complex landscape, the advice is twofold: prioritise purchasing from reliable, proven developers and understand that property ownership demands ongoing maintenance and reinvestment to preserve long-term value.

For developers planning new projects, the guidance is to seek expert market research, avoid cutting corners on quality, and establish a strong management structure from the start to protect the asset’s future.

Ultimately, both buyers and developers must focus on substance over speed. Smart decisions are driven by evidence, patience and a clear understanding of long-term value, ensuring resilience in the city’s evolving and competitive real estate market.

The broader ecosystem: Investors and policy-makers

Foreign investors are playing an increasingly important role, particularly in capital-intensive commercial developments and larger residential schemes. Ghana continues to attract interest due to the potential for higher yields compared to developed markets, alongside political stability and a generally peaceful environment.

This engagement is contributing to higher expectations, with local developers increasingly measured against international benchmarks. While a quality gap remains across parts of the market, developers who have adapted are becoming more visible and credible to foreign investors.

For policy-makers, this phase of growth demands attention to coordinated urban planning. Development is currently pushed outward by price pressure, often outpacing road networks, drainage and social amenities. Proactive planning and infrastructure investment are critical to ensure sustainable urban expansion.

The long-term outlook: Adaptation and strategy

Looking forward, the market will become less forgiving. As supply increases, weaker projects will struggle. Well-capitalised developers with strong track records will be better positioned to hold pricing and complete projects, while those with poor planning may face cash-flow pressure, discounts or construction pauses.

Rental markets will experience segmentation, not uniform movement. In prime areas, newer, well-managed developments will likely hold or see gradual rent increases, supported by corporate and professional demand. Conversely, older projects may see rents decline as tenants migrate to superior options, reshaping the profile of who occupies older stock.

To remain relevant, developers must adapt by designing for the modern end-user. This group is often younger, more mobile and values quality of living over ostentatious displays of luxury. They prioritise well-designed spaces, natural light, functional layouts, green areas and environments that support well-being. Developments that offer adaptable spaces and a stronger connection to the environment will align with these evolving expectations.

In summary, the demand for Accra’s new apartments is real, specific and discerning. It is focused on secure zones, driven by a calculated mix of local investors and professionals, and carefully evaluated against practical realities like convenience, yield and,  increasingly, the credibility of the developer.

The market is maturing into a layered ecosystem where understanding the buyer’s psychology, the developer’s reputation and the structural realities of supply is essential for any smart decision. This foundation of trust and quality will ultimately determine which projects thrive in the coming years.

Jolanda Castagna is the Founder and CEO of Akka Kappa Ghana, a leading full-service real estate firm in Accra. With over two decades of experience, she guides clients through development, sales and property management with a focus on integrity and long-term value.

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