Fatshimetrie recently explored the rise of high-rise real estate developments in upscale neighborhoods like the Airport Residential Area and East Legon, where units sell out quickly and monthly service charges are exorbitant. Demand for these luxury properties appears insatiable, with towers rising as high as 21 stories and almost all of the units already snapped up.
A recent investigation carried out by Fatshimetrie highlighted the experience of a man who was considering investing in a studio apartment listed for $130,000. However, the additional cost of a monthly fee, ranging between $150 and $350, seriously called into question the viability of this investment. Ultimately, this monthly charge could increase significantly, putting a greater strain on owners’ finances.
The man then raised a legitimate question: even if he invested $130,000 in this property, it would take more than 20 years to recover his capital, considering the most optimistic scenario. This revelation raises questions about the financial feasibility of such investments for the local population. Indeed, the largest units were all acquired by Ghanaians who paid in cash, casting doubt on the purchasing capacity of ordinary citizens in relation to the constant rise in property prices.
These findings led the man to question the economic reality of the real estate market in Ghana. He questions the compatibility between the average income of Ghanaians and the exorbitant prices of these luxury properties. Indeed, it is difficult to imagine how an average citizen could afford to invest in these real estate developments without seriously jeopardizing their financial situation.
The trend towards the expansion of high-rise residential buildings in areas such as the Airport Residential Area and East Legon raises significant issues in terms of affordability and long-term sustainability. It is essential to question the viability of these investments for the local population and to consider more inclusive solutions to ensure balanced real estate development accessible to all.
Fatshimetrie will continue to closely monitor developments in the real estate market in Ghana and explore the implications of this growing trend of high-rise developments in the country’s most desirable neighborhoods.