We can all unanimously agree that there is a time for everything; a time to sow, a time to build, a time to reap and a time to purchase a home perhaps? If there is, what then is the best time to do that?
The simplest answer is anytime is a good time...once you have the financial capacity to do so.
We are presently in uncertain times, and the impact of the COVID-19 pandemic has caused many unprecedented shifts in our socio-economic environment, and this includes the real estate market. The demand for houses took a significant downturn in most parts of the world.
Quoting from an article written by Taylor Moore and Jason Stauffer; “Last spring, when you’d normally expect to see a flurry of activity, the pandemic pushed some buyers and sellers to the sidelines. Danielle Hale, chief economist at realtor.com, saw an 18 to 20% drop in home sales in May 2020, which is normally a busy time of year. The drop coincided with a decrease in homes listed for sale.”
However there is a positive comeback and people are starting to regain trust in the financial market around the world.
Unlike other parts of the world, Ghana’s real estate is seen as an “up and coming market”. The Ghanaian real estate sector has seen significant growth in the past few years. This has been spurred by growth in demand for both residential and industrial property. A Global Property Report article written in 2019 by Lalaine Delmendo insights that demand is stable, especially in the high-end market. Based on figures from Broll Ghana, there have been about 85,000 residential property transactions, for both sales and rentals every year, over the past decade.
There still exists unmet demands leading to growth opportunities in the areas of construction and real estate development and management. Ghana’s property market is dominated by residential and commercial developments.
Analysing the time factor for purchasing a house must consider other factors. These include the reason you are purchasing a house: Are you purchasing the house to live in or are you purchasing it for investment, such as leasing or renting.
Purchasing a home to live in is more dependent on your financial capabilities and personal timelines than it is dependent on the projections of the financial market.
Typically in Ghana, there is an influx of foreigners in the Summertime and November - December festive holidays. This increases the market of people who are looking to rent an apartment and in some cases buy properties. During that time, the demand for properties becomes high, thereby increasing market prices in the real estate sector. It can be noted that prime locations with close proximity to central Accra such as Osu, East Legon, Labone & Cantonments are most likely to have the highest margins in price increments.
Beyond the festive holidays, the measure of demand for properties isn’t as much as the previous months.
When it comes to purchasing a home for the purpose of investing, timing probably should be a factor to consider. Long term, you want to look at the GDP growth, the rise and fall of the dollar rates, inflation and economic growth. More than 70% of houses for sale in Ghana are priced in US dollars.
The good thing about real estate investment in Ghana is that properties and lands always appreciate overtime. If you purchase a land today and flip it, in 2 years, you will see the investment yield returns.
Ghana is a country with a high housing deficit, so properties will always be in demand. However, taking into account the time at which you make a purchase can make a huge difference. You are likely to save more purchasing a property in March as compared to a busy season like December.
If you’re starting to consider whether buying a new home would be a good move for you, now is the time to start looking. Keep an eye on the housing market to get an idea of the trends in your area. You can start here www.quaorealty.com