Head of Business Development and Strategic Initiative at First National Bank Ghana, Edward Nyarko, has urged investors interested in investing in the real estate sector should have a long term horizon.
According to him, investing in real estate for the long term can aid investors achieve huge real positive returns.
Speaking during a Twitter Space Conversation dubbed “Is Real Estate a Viable Business in the Current Economic Climate?” hosted by norvanreports on Sunday, February 12, 2023, Mr Nyarko averred investing in real estate amid the current economic climate is a good decision for investors.
This, he noted, is due to both the income and capital appreciation in real estate assets, particularly during periods of high inflation as high inflation reflects in the prices of real estate assets.
Despite being a good investment avenue for investors, Mr Nyarko advised investors to first seek professional advice before deciding to invest in the sector. This, he noted, is for investors to avoid the pitfalls of investing in the sector.
Speaking further during the Twitter Space Conversation, Mr Nyarko remarked that, investors when looking to buy houses or lands, should be on the look out for lands or houses situated in areas with good infrastructure.
According to Mr Nyarko, lands or houses acquired in such areas have enormous potential of having their capital appreciate higher than lands or houses in areas with little or no infrastructure.
Real estate has long been considered one of the most stable and profitable industries in the world, but with the current economic climate, many are questioning its viability as a business. In Ghana, the real estate sector has faced several challenges in recent years, including a sluggish economy, declining property values, and tightening credit markets.
However, despite these difficulties, many experts believe that the real estate market still has the potential to be a viable business opportunity for those who are willing to take a strategic approach.
One of the key factors that makes real estate a viable business in Ghana is the country’s growing population and increasing demand for housing. As more people move into cities and urban areas, the demand for residential and commercial properties continues to rise, providing opportunities for real estate developers and investors.
This is particularly true in rapidly growing cities such as Accra, Kumasi, and Takoradi, where the demand for housing has far outstripped the supply.
Another factor that is helping to boost the viability of the real estate business in Ghana is the government’s commitment to promoting the sector. In recent years, the government has implemented a number of initiatives aimed at boosting the real estate market, such as tax breaks for developers and investors, subsidies for affordable housing, and initiatives to streamline the process of acquiring land and building permits.
These policies have helped to create a more favorable business environment for real estate companies, and have made it easier for them to secure financing and carry out their operations.
Source: Norvanreports