Luxury real estate is high-end properties usually developed for high profile, high income and high net worth individuals worldwide. Due to their massive resources and high-level income stream, most of them desire to live an elegant lifestyle, requiring high class buildings with high grade furnishings in a prime location.
They mostly buy or own several homes and real estates in different countries across the world. The features and parameters that define luxury real estate may differ slightly amongst countries, though there are always common traits. Familiar characteristics of luxury real estate include the property location and its surrounding views, such as by a water body, on a hill or next to luxurious amenities like golf courses, international first class schools, hospitals, security stations and spas.
In Ghana, luxury real estate is usually classified by the location first, then the high sale price and sophisticated facilities. Communal facilities consist of 24hour concierge desk services, coffee bar and waiting lounge, roof top pool, Jacuzzi, gym and sky garden with spectacular views. These luxurious homes are usually within one-mile radius of the Kotoka International Airport such as the Airport Residential Area, Airport City, East Legon, Airport Hills, Roman Ridge, Labone, Cantonments and Trasacco Valley – the only luxury gated community.
Properties selling above US $100,000 are usually classified as luxurious in Ghana. The average cost of luxury homes (usually 3-4bedrooms) in Airport Residential Area is around US $ 400,000; in East Legon US $ 370,000; in Spintex US $300,000; but in Trassaco Valley and Airport Hills is US $1million. Generally, luxurious homes in Accra costs around US $ 500,000.
However, luxury homes in Asia costs at least US $1.3m. In USA luxury houses start selling around US $1.4 million and for Europe is at least US $1million. South Africa and Nigeria have their minimum hovering around US $200,000. In comparison with other global prices of luxury homes, Ghana seems to have lower costs of luxury homes thus there is high demand especially by foreign investors which increases the prices. These prices keep escalating tremendously due to the forces of demand and supply, influx of expatriates, returning Ghanaians from abroad with much foreign income, the new oil industry and cost of building materials.
Foreign developers are now cashing in on Ghana’s real estate industry and making huge profits. They buy an acre of land for about US $2.5million and construct a number of high rise apartments selling each for about US $300,000 to US $800,000.
With the high demand, good returns are made within reasonable time. Examples of these developments are Villagio Vista, Primrose Place, Meridian Apartments and Casa Bella, all within the Airport Residential Area.
Though it may seem all profitable, the real estate industry in Ghana still faces some challenges predominantly related to acquisition and registration of lands. These are mostly issues of litigations and complicated land transfer processes especially associated with real estate in the prime areas.
This trend of continuous increase in prices in the real estate market is expected to remain so for a long while.
Though most native Ghanaians are not able to enjoy these luxury homes because they cannot afford it, the luxurious housing developments and its subsequent management create several jobs for Ghanaians and a good competition in the local building industry.