Renting vs. buying property in Ghana remains a significant financial decision. Urbanisation in major cities like Accra, Kumasi, and Takoradi is driving high demand for housing. However, inflation, land scarcity, and rising construction costs significantly impact property prices and rental rates.
Additionally, many people find the limited access to mortgages a difficulty in homeownership. This article highlights key factors—trends in Ghana’s property market, costs, and alternative options—to help you make the best housing decisions between renting or buying property in Ghana.
Overview of Ghana’s Property Market
The Ghana property market is primarily composed of the office, retail, industrial and residential
markets. It, however, faces a severe housing deficit. Rapid urbanisation leading to population growth, economic development, and an expanding middle class, all of which demand housing. As a result, property prices and rental rates continue to climb.
Many people, especially low-income families and individuals, are unable to afford new, modern accommodations. Moreover, location is a primary factor when it comes to pricing in Ghana’s property market.
House rents in Accra can range between GHS 1,200 and GHS 6,500 per month for a moderate one-bedroom. Prices vary in expensive suburbs like Cantonments, Airport City, East Legon, and Labone.
The Kumasi and Takoradi Metropolitan areas are also witnessing an increase in real estate transactions. Factors such as inflation, high construction costs, and land scarcity contribute to these price hikes. This makes affordability a major concern.
Renting vs. Buying: The Pros and Cons
Whether renting or buying, the decision surely influences a person’s long-term financial stability and lifestyle choices. Renting offers flexibility but doesn’t build equity, while buying is an investment that requires significant capital. Factors like income, job stability, and personal goals influence the best choice.
Why Rent?
There are many reasons why you may choose to rent or not. Below is a summary of the pros and cons of renting.
Pros:
- Lower upfront costs. Unlike huge down payments in buying, a renter only has to provide a security deposit and initial rent payments for renting.
- Flexibility. As a renter, you can relocate easily for work or lifestyle changes. No issues of long-term commitment to property ownership.
- No responsibility for major maintenance and repairs; landlords take care of these.
Cons:
- No equity building; the money you spend on rent is not an investment.
- Rent increases over time.
- Some landlords have strict rules and policies, which may not favour tenants.
Why Buy?
Compared to renting, buying properties has its pros and cons as outlined below.
Pros:
- Long-term investment and property appreciation.
- Freedom to modify and personalise the home.
- Stability—you have no risk of eviction due to landlord decisions.
Cons:
- High initial costs. You have to ensure a significant down payment, legal fees, and registration, among others.
- You bear maintenance and repair responsibilities.
- Mortgage challenges include high interest rates and loan qualification criteria.
What to Consider in Your Housing Decisions
Financial
- Are you financially sound? Assess your income stability, savings, and loan eligibility.
- Mortgage availability—how accessible are home loans? Mind you, interest rates are high, typically above 25%.
- Are you ready for ongoing expenses? Property ownership includes taxes, maintenance, and utility bills, while renting mainly involves monthly rent.
- Market Conditions—Check out the real estate market for favourable buying or renting opportunities.
Lifestyle
- What are your lifestyle and career plans? Consider your long-term versus short-term residency in a location.
- Career stability. If you expect frequent relocations for work, renting may be a better option.
- Family planning. Buying is ideal for those looking to settle down long-term.
- Investment goals. If you plan to generate rental income or resell in the future, purchasing property may be beneficial.
Legal
If you decide to buy property, make sure to:
- Verify land ownership. A thorough search at the Lands Commission to confirm ownership and avoid land disputes.
- Sign a sales agreement. Be sure all terms are clearly stated.
- Get a title registration. Register the land and obtain a land title certificate.
- Pay required fees—stamp duty, legal fees, and registration costs.
Find more on land title registration here: Land Title Registration in Ghana: A Step-by-Step Guide for Buyers (2025)
Alternative Housing Options
Aside from owning or renting a property, there are other housing options available to accommodation seekers:
- Rent-to-own schemes. Some real estate companies offer plans where tenants gradually pay towards ownership.
- Shared ownership. Family members or groups of investors can co-own property to reduce individual financial burdens.
- Co-living spaces. This option is gaining popularity for convenience among professionals and expatriates.
Conclusion
Renting vs. buying in Ghana depends on your finances, lifestyle, and market conditions. Renting offers flexibility, while buying is a long-term investment.
At Nouveau Realty Ltd, we can help you carefully weigh your options to make the best housing decision for your future.
What do you prefer, the flexibility of renting or the stability of home ownership?