Accra Ranked Third Fastest-Growing Real Estate Market in Africa

Accra Ranked Third Fastest-Growing Real Estate Market in Africa

Accra has been identified as the third fastest-growing real estate market on the African continent, behind only Nairobi and Lagos, according to recent data from Statista and Knight Frank’s Africa Report. The Ghanaian capital is benefiting from a combination of macroeconomic stability, rising urbanisation, and expanding demand across both luxury and affordable segments.

The report underscores a sharp rise in property values in Accra, positioning the city as an increasingly attractive destination for real estate investors seeking exposure to Africa’s urban growth narrative. Analysts attribute the city’s momentum to sustained GDP growth, demographic expansion, and a policy environment that has generally favoured private sector involvement.

“Africa’s real estate sector is expanding rapidly, fuelled by urban migration, demographic growth, and government infrastructure investment,” the report noted. It further cited figures from the African Development Bank forecasting average annual GDP growth of 4 per cent between 2023 and 2025 — a benchmark exceeded by high-performing cities such as Accra.

Ghana’s real estate market is projected to reach a valuation of GHS 533.34 billion by 2025, with residential assets accounting for more than GHS 456 billion. Despite broader fiscal challenges and recent inflationary pressures, the sector is forecast to grow at an annual rate of 3.44 per cent through 2029, reflecting the continued strength of demand, particularly from the country’s growing middle-income class.

Affluent districts including East Legon, Cantonments and Airport Residential Area remain the epicentre of prime residential development, attracting both local elites and expatriates. At the same time, developers are turning their attention to emerging suburban zones such as Spintex, Adenta and Pokuase, where the search for affordable housing is intensifying.

The government’s affordable housing push — largely driven by public-private partnerships and expanded mortgage access — is playing a supportive role in broadening market inclusivity and reducing the housing deficit.

Accra’s transformation into a regional commercial hub is also reshaping its office and retail landscape. Demand for Grade A office space and mixed-use developments has surged, underpinned by Ghana’s political stability and its position as a gateway to West Africa. However, the office segment is facing headwinds. Post-pandemic oversupply has driven vacancy rates to between 20 and 30 per cent, prompting a shift among developers towards more flexible and hybrid workspace offerings.

Elsewhere on the continent, Nairobi continues to attract strong investor interest in its tech-enabled real estate ecosystem, while Lagos is set to dominate in terms of volume, with a market projected at $2.25tn by 2025. Kigali, known for its sustainability initiatives, and Johannesburg, South Africa’s economic hub, also remain key players in the evolving African real estate landscape.

The continent’s real estate prospects, while varied by geography and policy maturity, appear increasingly driven by private capital, demographic demand, and shifting patterns in how cities grow and function in a post-Covid era.