Requirements To Start A Real Estate Business In Ghana

Real Estate Business In Ghana

One of the most profitable businesses one can start in the world today is the real estate business.

In a country like Ghana, records show that people are making huge profits from the real estate industry, both as real estate investors and as real estate agents.

Although the real estate business in Ghana comes with its challenges, with the right knowledge and the right information about how it works, you can surmount these challenges.

If you reside in Ghana and have an interest in starting a real estate business or you already have a real estate business and would like to know how to improve it, then this article is for you.

In this article, we’ll provide information on everything you need to know about the real estate business in Ghana as well as the necessary steps to take to become a successful real estate investor in a country like Ghana.

How Is The Real Estate Market In Ghana?

As Ghanaians are now looking for means to invest in properties as a means of investment and securing their financial future, the real estate market at the same time has experienced rapid development and growth in recent years.

As it stands now, the real estate market in Ghana offers numerous opportunities for developers, investors, and home buyers to explore.

Finally, with the growing population, the Ghanaian real estate market can never go lower.

What Are The Types Of Real Estate Business In Ghana?

The five main types of real estate business in Ghana are:

1. Residential Real Estate Business: Residential real estate is a type of real estate business that uses a real property for the benefit of residential living either for an individual or a group of people.

Examples are duplexes, townhouses, apartments, and many other housing arrangements.

2. Commercial Real Estate Business: This type of real estate business uses real property for its business operations.

Examples are grocery stores, office buildings, gas stations, and many other business facilities.

3. Industrial Real Estate Business: This is a type of real estate business in Ghana that uses real estate properties for industrial businesses.

Examples of Industrial real estate are logistics, transportation, manufacturing, warehousing, etc.

4. Raw Land: Raw land real estate involves any real estate business that has to do with vacant land, farmland, and underdeveloped lands. It can also involve the buying and selling of land.

5. Special Purpose Real Estate Business: A special purpose real estate business is most times classified under commercial real estate. It is a type of real estate used by the general public. Examples are schools, libraries, parks, churches, etc

How Profitable Is Real Estate Business In Ghana?

You may be asking if the real estate business is profitable in Ghana. Well, the real estate business is one of the most profitable businesses in Ghana because of its significant returns on investment.

Moreover, people are constantly looking for land to buy, apartments to rent, or other properties to buy. These factors alone have created much value in the real estate sector.

What about the fast-growing population of the country? All these make the real estate business a profitable one.

What Are The Challenges Of Real Estate Business In Ghana?

The real estate business in Ghana comes with its own set of challenges despite its profitability. So below are the challenges facing the real estate sector:

1. Land Ownership Issues And Disputes: This is one of the challenges of the real estate business. There have been a numerous dispute and issues over land due to lack of transparency.

If care is not taken, you may buy land/properties whose authenticity isn’t valid. However, ensure that the processes of acquiring properties are genuine.

Most importantly, do a background check before purchasing any land/properties.

2. High Construction Costs: The high cost of construction materials and labor has driven up the overall cost of real estate development. And this makes it difficult for developers to offer affordable housing options.

3. Regulatory Challenges: Some regulations regarding real estate in Ghana are time-consuming.

For example, obtaining the required licenses & permits involves following a regulatory process and fulfilling some requirements, and this can result in delays and increased costs.

4. Housing Affordability: Housing affordability has become one of the major problems in the real estate sector.

As Ghana’s population is rapidly increasing, the affordability of houses is becoming hard. This has made a lot of Ghanaians find it difficult to find or afford housing that fits their budget. As a result, both the residents and the estate agents are also affected.

How Can I Invest Money In Real Estate In Ghana?

You can invest money in real estate business in Ghana by doing the following:

1. Finding a property that has good rental demand.
2. Identifying properties in areas with good infrastructure and amenities, as well as having a future development potential.
3. Finding and investing in a property that is in demand.
4. Looking for properties that have good resale values.

What Are The Factors To Consider Before Investing In Real Estate In Ghana?

There are three major factors to consider before investing in real estate in Ghana and they are:

1. Small Startup Factor: Before investing in a real estate business, you have to start small and master the game of the business. After that, you can now proceed to larger projects.

2. Budgeting Factor: When investing in properties, or buying houses, you should have a budget for it. It’s important to buy properties that fit within your budget.

3. Knowledge Of The Sector: This is the most important factor to consider before investing in real estate. There is no how you can start investing in a business you do not know about. It often leads to downfall.

What Are The Reasons To Invest In Property?

Here are a variety of reasons to invest in property:

1. It is an excellent way to grow your wealth and build a portfolio.
2. Investing in property is a means of creating a passive income.
3. The property investment has the potential to generate income for life through leasing or rentals.
4. Landed properties appreciate on time and for this reason the profit potentials are high.

How Much Does It Cost To Start A Real Estate Business In Ghana?

To start a real estate business in Ghana, you should consider having a huge capital for it because a real estate business is a capital-intensive business. The cost of starting a real estate business varies based on the type of real estate you are starting.

For example, to become a real estate investor in Ghana, you will need a standard capital of 20,000 to 100,000 Ghana cedis.

To start a real estate business as an agent will cost little or no capital, as you connect buyers to sellers or sellers to buyers to earn a commission.

What Is The Minimum Amount To Start A Real Estate Company In Ghana?

According to our research, the minimum working capital required to start a real estate company is 1,300,000 Ghana cedis.

How Can One Start A Real Estate Business In Ghana?

Follow the below steps to start a profitable real estate business in Ghana:

1. Choose The Right Real Estate Niche: The first step in starting a real estate business is to identify and choose the real estate business you wish to start with.

Just like we have explained before, there are different types of real estate business in Ghana which range from residential real estate, commercial real estate, industrial estate, raw land, and special purpose real estate.

Therefore, start by identifying the one that you can do, and start learning the pros and cons of it. You can achieve this by doing proper research about the market to be more clear about your preferred niche.

2. Develop A Business Plan: You need to have a specific plan on how to make progress and become successful as a real estate agent or investor in Ghana. Nonetheless, this is achievable through a good business plan.

After you have chosen the best niche for you, you should strategically plan your real estate business and learn about the competition, consumer trends, prices, demand patterns, and the target audience to focus on.

Also, your business plan should include an executive summary, market analysis, financial planning, marketing strategy, and budget. But note that if you cannot create a business plan you can contact a professional to do that for you.

3. Build A Brand: Real estate is not an exception when it comes to building a brand. Branding is very important because of the integrity and credibility it gives to your business.

Meanwhile, achieving good branding comes with providing value to your customers and building a strong relationship with them on a personal level.

Also invest in branding identities like logos, advertisements, websites, and social media channels.

4. Register Your Business: If you are starting a real estate company whether on a small scale or in a big way, it is so necessary to legalize and register your business with the Registrar General’s Department (RGD).

Don’t forget that when it comes to building a good brand, business registration should be the major step to take. With your business registered, you can operate freely with confidence without any fear.

5. Set Up Your Office: At this stage, you have to establish an offline office for your real estate company. When looking for a place to locate your office, you have to ensure that it is a target audience-appealing location.

After choosing the best location for your real estate office, you now have to furnish it by keeping a few chairs for your customers, making a signpost bearing your brand name, and ensuring comfort in your office.

Therefore, what determines the arrangement of your office is the size of operation (whether a big company or small scale company)

6. Build An Online Presence: You can build an online presence by creating a real estate business website that targets a specific audience. Achieving this comes by hiring a professional to create and design a quality website for your real estate business, or if you know about website development you can do it by yourself.

Another way of building an online presence is by creating a social media page bearing your real estate business name and running a quality advert to reach out to people.

With your website and social media page, you can create quality content and update your followers/viewers about the latest real estate trends.

7. Build An Offline Presence: While online presence is very important, offline presence is the most important. This is because when people don’t know that a real estate company exists in a particular area, it will be hard to make sales and get recommendations or referrals.

So to build an offline presence, you start by having a billboard that has your business name and the services you offer.

For example, it can be something like “TopBusinessResearch Real Estate”, we buy and sell landed properties. However, with this, you are creating an offline awareness.

You can also build an offline presence by networking with people and building a good relationship with them. Once that connection is built, there are higher chance of referrals and recommendations.

Conclusion

The real estate business in Ghana is a profitable investment opportunity for people who want to create a passive income.

Nevertheless, by reading this article we believe that it has become an eye-opener for you on how to start a real estate business in Ghana.

And don’t forget to abide by the rules and regulations that guide the real estate sector in Ghana.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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