Over the last few decades, there has been a significant influx of students into various universities across Ghana, both local and international. In major cities such as Accra, Kumasi, and Cape Coast, student housing is becoming a real concern.
In response, more private universities are opening to bridge the gap. Yet, all these student numbers require safe, affordable, and convenient housing; the demand has never been greater.
In this post, we discuss the challenges of student housing and the silver lining for real estate investors, schools, and city planners.
What is Student Housing?
Student housing is accommodation built specifically for students, either on or off campus. These may include hostels that are managed by the schools themselves or by private developers.
Some of these hostels are large, well-planned facilities, while others are residential buildings that have been converted for the purpose. In places like Accra, student accommodation often comes with basic amenities such as shared kitchens, internet access, and study areas.
In recent times, housing for students is no longer just a building full of rooms to sleep in. It has become more of a place where they live, study, and build social connections during their school life.
Why Demand for Student Housing Is Rising
Growth of Tertiary Education
A lot of things are responsible. The student housing market in Ghana is growing faster because we’re having more and more universities and students. The country now has over 100 tertiary institutions in both the public and private sectors. These draw in thousands of new students every year.
Urban Migration
A second reason is urban migration. It’s always the case that students in rural towns would move to study in cities like Accra, Kumasi, and Takoradi. Then, there’s the issue of limited spaces on campus. Unfortunately, public universities can only accommodate a fraction of their student populations. This situation, therefore, prompts most students to rent rooms or hostels nearby.
Growing Middle Class
Another factor is that, as a country, we’re seeing a growing middle class. This is a good thing. The outcome, however, is that more parents increasingly prefer and seek decent, secure, and comfortable accommodation for their children.
The Rise of Foreign Students
Ghana is a great destination for international students, both within and outside Africa. The rise in foreign students from Nigeria, Côte d’Ivoire, and other countries adds more pressure to existing spaces and facilities.
Key Cities Driving the Student Housing Market
While student populations are increasing across the country, the numbers are higher in cities such as Accra, Cape Coast and Kumasi. Therefore, the demand for student housing is higher, too
This situation isn’t everywhere; some cities are clear hotspots. For example, Accra is home to major tertiary institutions such as the University of Ghana (UG) and UniMAC. Student accommodation is, therefore, highly competitive in the capital and prices range widely.
In Kumasi, the Kwame Nkrumah University of Science and Technology (KNUST) attracts thousands of students. With its numbers, it creates a strong market of hostels for students in the Ashanti regional capital.
The Central region also accounts for a considerable number of the national student base; the University of Cape Coast (UCC) and surrounding colleges drive a stable need for housing. In places like Tamale and Takoradi, student housing demand is rising, considering the emergence of new institutions and training schools, although they have smaller markets compared to the others.
What Students Look for
Today’s students want more than just a bed and a desk. They value the usual conveniences of regular housing. So, developers who design hostels with the following features have much higher occupancy rates and fewer vacancies. The accommodation should have:
- Security: A safe environment with controlled entry and guards, where possible.
- Proximity: A short walking or commuting distance from campus.
- Comfort: Clean rooms, proper ventilation, and reliable electricity and water.
- Connectivity: Wifi access is now a must-have.
- Affordability: Prices should match limited student budgets.
- Community: The housing should have spaces that allow for social interaction and a sense of belonging.
The Role of Private Developers
As much as they try, public universities just can’t keep up with the huge numbers that throng their facilities every year. Here’s where private developers are stepping in. Many of them build modern student hostels with all the needed comforts. Sometimes, they do this in partnership with the schools. These hostels often offer extra amenities such as study lounges, mini gyms, and shuttle services.
Compared to those of most public institutions, and especially to informal rentals, private hostels are usually better maintained and more secure. The downside, however, is that the student must be willing and able to pay more, as they cost way more than the average hostel. However, due to the high cost, only middle-income students can afford them.
Challenges in the Student Housing Market
Seasonal Income
When we overlook these great opportunities, several challenges limit our growth. Firstly, income in this industry is seasonal.
Hostels often rely on annual rent payments, which are tied to academic calendars. Another major challenge is the high cost of rent. It’s not far-fetched to say that only one out of 100 students can afford the new, high-end hostels in Accra and Kumasi.
Structural Integrity
On the other hand, the cheaper or ‘affordable’ hostels may not be the best in terms of structural integrity. Some of these buildings are of poor quality; they’re either unsafe or poorly maintained. Regulation can help in such cases; however, there are huge gaps. Few policies exist to guide standards, pricing or contracts of hostel facilities.
And just like the rest of the country, infrastructure issues are not uncommon. You’re more likely to find poor roads, limited water and electricity shortages, which affect areas around campuses. All of these challenges point to a need for stronger regulation and better planning.
Investment Opportunities
Now, let’s look at the silver lining. For investors, student housing in Ghana is becoming a solid, long-term cash flow. This is because demand is stable. Universities are expanding daily and will continue to do so. Thus ensuring a steady stream of student-tenants. And for any serious investor, these points are signs of good returns. It’s even better in high-demand areas like Legon and East Legon Hills, where hostels can yield high rental income.
As an investor, you can explore flexible models: build, lease, or partner with schools. You can also consider short-term rentals. During holidays, you can list the hostels for travellers or exchange students.
On the whole, well-managed hostels bring in value in the long term: they appreciate quickly due to consistent occupancy. The key, however, is location, design quality, and pricing. The cost should align with what students can actually afford.
What the Future of Student Housing Looks Like
The student housing market in Ghana will only appreciate long-term as more private universities are springing up each year. And developers are now including study areas, wifi, and recreational zones as standard features.
New designs also focus on sustainability and affordability. If these trends continue, purpose-built student accommodation in Accra could soon be rubbing shoulders with Kenyan or South African models.
Conclusion
Student housing in Ghana is becoming more than a real estate trend; it’s gradually taking its place as an essential part of the education system. With rising student enrollment, urban migration, and limited campus capacity, demand will keep increasing.
For developers and investors, this is the time to invest in student housing. And for policymakers, it’s time to ensure quality, safety, and fairness for every student looking for a place to call home, one that makes schooling a lot easier.