- Accra’s Airbnb Rush: Opportunity for Investors, Pressure for Tenants
The rapid growth of Airbnb in Accra is forcing Ghana to confront a difficult housing question: should homes be treated primarily as shelter for residents or as investment assets for short-term rental income?
Real estate developer and Chief Executive Officer of Dromi Homes Co. Ltd, Curtis Tetteh Djaba, has warned that although Airbnb has created jobs, supported tourism and opened new income streams for property owners, its unchecked expansion could worsen housing affordability pressures in Accra.
In an article published by AdomOnline, Mr Djaba argued that the Airbnb debate should not be reduced to a simple choice between banning short-term rentals and allowing the market to operate without rules.
“The solution is not to ban Airbnb,” he wrote. “Doing so would undermine tourism, reduce investment, and eliminate valuable income opportunities. Instead, policymakers should focus on creating balance.”
Over the past decade, Airbnb has transformed the global hospitality and real estate sectors. In Ghana, particularly in Accra, the model has become increasingly visible across neighbourhoods such as East Legon, Cantonments, Airport Residential Area, Labone, Dzorwulu, Ridge, Osu and East Legon Hills.
Many apartments and houses in these areas are now listed on short-term rental platforms, with some investors buying properties specifically for tourists, business travellers, visiting families and members of the Ghanaian diaspora.
The trend has been boosted by Ghana’s growing international profile, including the Year of Return and Beyond the Return initiatives, which increased visitor arrivals and demand for flexible accommodation.
According to Mr Djaba, Airbnb has helped expand Ghana’s accommodation capacity without requiring government investment in hotels or tourism infrastructure. During major events, conferences, festivals and the December holiday season, short-term rentals help absorb visitor demand and reduce pressure on hotel rooms.
He noted that Airbnb guests also spend money directly in local communities, including restaurants, supermarkets, pharmacies, transport services, bars and entertainment venues.
The Airbnb economy has also created opportunities beyond property ownership. Each short-term rental generates demand for cleaning, housekeeping, laundry, security, repairs, landscaping, interior design, property management, photography, marketing and guest transport services.
“This ecosystem has created employment opportunities and entrepreneurial ventures that did not exist a decade ago,” Mr Djaba wrote.
For property owners, Airbnb can produce higher returns than traditional long-term rental arrangements. A property that may earn GHS 4,000 or GHS 5,000 per month under a conventional lease can generate much higher income during peak tourism periods through short-term stays.
For diaspora investors, the model offers an attractive way to earn income while retaining flexibility over their property assets.
But the benefits come with costs.
Mr Djaba warned that as Accra faces rising rents, escalating property prices and a housing deficit estimated at 1.8 million units, the impact of Airbnb on the long-term rental market cannot be ignored.
The main criticism is that every apartment converted into a short-term rental is one less unit available to permanent residents. This effect is particularly sensitive in high-demand neighbourhoods where housing supply is already tight.
When landlords and investors realise that Airbnb can generate more income than long-term rentals, the incentive is to prioritise short-term guests over local tenants.
“As more landlords make this transition, the supply of long-term rental housing decreases,” Mr Djaba said.
The impact goes beyond homes actively listed on Airbnb.
Landlords who do not operate short-term rentals may still raise rents because Airbnb changes market expectations. If a two-bedroom apartment can generate the equivalent of GHS 12,000 a month through short-term stays, landlords may become reluctant to rent the same unit for GHS 4,000 or GHS 5,000 under a normal lease.
The burden, he argued, falls heavily on ordinary residents, especially young professionals, nurses, teachers, civil servants and recent graduates trying to establish themselves in Accra.
Airbnb also contributes to gentrification, as residential communities gradually become tourist-oriented districts. Investor demand pushes up property values, while developers increasingly target luxury apartments designed for short-term rental investors rather than affordable homes for local residents.
Mr Djaba warned that this can gradually displace lower-income households from desirable locations and create a city increasingly segregated by income.
“The long-term consequence is a city that becomes increasingly segregated by income,” he wrote.
Still, he cautioned against blaming Airbnb alone for Accra’s housing crisis.
According to him, the deeper causes include rising land prices, high construction costs, limited affordable housing development and rapid urbanisation.
Land prices in areas once considered affordable, including Kwabenya, Pokuase, Oyibi, Amasaman and East Legon Hills, have increased sharply over the past decade. Construction costs have also risen due to inflation, exchange rate pressures, import dependency and global supply chain disruptions.
The result is a mismatch between the homes being built and the homes most residents can afford.
“Airbnb alone did not create Accra’s housing crisis, and regulating Airbnb alone will not solve it,” Mr Djaba argued.
He pointed to cities such as Barcelona, Amsterdam, New York, Paris and London, which have introduced measures to regulate short-term rentals without eliminating them.
These include mandatory registration of Airbnb properties, tourist taxes, restrictions on the number of rental days per year, limits on multiple-property ownership, enhanced reporting requirements and zoning regulations.
For Ghana, he proposed a similar balancing approach.
Potential measures include stronger registration requirements, better data collection on short-term rental activity, incentives for long-term rental accommodation, expanded mortgage access, improved transportation infrastructure to open up new residential areas and streamlined land administration.
The policy challenge is to protect residents without killing the economic opportunity Airbnb provides.
Airbnb is not entirely a villain. It boosts tourism, creates income, supports jobs and encourages property development. But it is not entirely harmless either. It can reduce long-term rental supply, raise rents and accelerate the conversion of neighbourhoods into investment zones rather than residential communities.
The bottom line, Mr Djaba argued, is that Ghana must regulate without strangling opportunity.
“Done right, tourism and affordable housing can coexist. Done wrong, Accra becomes a city for visitors, not for those who call it home,” he said.
For policymakers, the warning is clear.
Accra’s future will not be determined by whether Airbnb exists. It will be determined by whether Ghana manages housing, tourism, investment and urban growth wisely.
A successful city must work for investors, visitors and residents alike.
If Ghana fails to strike that balance, housing may continue its quiet drift from basic necessity to luxury asset.
