Real estate industry booms as investors shy away from financial products
In the wake of heavy losses suffered by investors due to the domestic debt exchange program, the real estate industry is experiencing a surge in interest from investors, according to Patrick Bonful, the President of the Ghana Real Estate Developers Association (GREDA).
Speaking to journalists, Mr Bonful reported a significant increase in enquiries about investments in the real estate sector in recent weeks.
While this increased interest is a positive development for the real estate industry, Mr Bonful cautioned investors to approach the sector with a long-term horizon in mind. Investing in real estate for the long term can yield positive returns, but it is important to be aware of potential pitfalls and to seek professional advice before making any investment decisions.
Edward Nyarko, Head of Business Development and Strategic Initiative at First National Bank Ghana, concurred with Mr Bonful’s assessment, noting that real estate can be a good investment avenue for investors in the current economic climate. He pointed to the income and capital appreciation potential of real estate assets, particularly during periods of high inflation when the prices of real estate assets tend to rise.
Despite these potential benefits, Mr Nyarko advised caution, emphasising the importance of seeking professional advice before investing in the real estate sector. He also noted that investors should be aware of the various factors that can impact the performance of real estate investments, such as market conditions, location, and long-term outlook.
Overall, the surge in interest in the real estate sector is a positive development for the industry, but investors should approach the sector with caution and seek professional advice before making any investment decisions. With careful consideration and a long-term outlook, real estate can be a viable investment option for investors in the current economic climate.
