The rebound of the real estate development and construction
sectors has been pivotal to the recovery of the country's economy following the
COVID-19 pandemic. The construction sector experienced a 9% growth in the first
three quarters of 2024, contributing to an overall 6.3% growth in the non-oil
sector. This sector is a critical indicator of economic health, influencing
various areas, including manufacturing, employment, and consumer confidence.
In Ghana, the construction sector is not just foundational
but also transformative, as illustrated by high-profile initiatives such as the
Prestige by i2 Development, which is strategically situated within the Kotoka
International Airport Enclave. In a recent interview, Mr. Youssef Aitour,
Co-Founder and Managing Director of i2 Development, emphasized that
"investments in real estate development play a crucial role in fostering
trade, enhancing productivity, and boosting the economy" He added that
landmark projects, including mixed-used developments, create jobs and set the
stage for sustainable economic development, with the Prestige project
exemplifying this impact by enhancing local infrastructure and stimulating
economic activity.
Recent industry studies highlight that rental properties in
Ghana can yield returns ranging from 19.3% to 22.0%. Such rental yields
indicate attractive prospects for property investors, with upscale residential
developments in areas like Airport City, Airport Residential Area, and East
Legon emerging as hot spots, boasting occupancy rates of approximately 70-80%
annually. The Prestige, a notable project by i2 Development, contributes drastically
to this momentum.
Additionally, large-scale construction projects like Prestige
are vital for generating employment. The Prestige development is expected to
create more than 3,000 direct and indirect jobs, encompassing both skilled and
unskilled labour. This significant job creation is anticipated to reduce local
unemployment rates and improve community livelihoods, showcasing the extensive
benefits of major construction initiatives on regional economies.
The construction industry is a major employer, providing jobs
across diverse skill levels. From architects and engineers to laborers and
electricians, these projects necessitate various professionals, thereby
creating employment opportunities within the community. Furthermore,
construction projects can positively influence local businesses. The influx of
workers and the associated demand for materials and services foster
opportunities for local businesses to thrive, leading to increased patronage
for restaurants, cafes, and retail stores nearby.
In addition to creating direct employment, construction
projects also generate indirect job opportunities in related industries, such
as suppliers of building materials, transportation services, and equipment
rental companies. The demand for these goods and services can lead to further
job creation, which boosts the local economy.
"A thriving real estate development sector also attracts
domestic and foreign investments," Mr. Aitour noted. The Prestige project,
focusing on modern, well-planned environments, is expected to draw additional foreign
investments. Enhanced amenities and infrastructure will make the location
increasingly appealing, fostering the growth of a dynamic commercial hub that
can significantly contribute to the national economy.
Strategically located within the Kotoka International Airport
Enclave, Prestige is also well-suited for tourists and business travellers.
This positioning enhances Ghana's profile as a favourable business destination
and promotes tourism, leading to a surge in visitors and broader economic
activities. Improved facilities bolster Ghana's international reputation while
supporting sustainable development goals.
Mr. Aitour has emphasized that i2 Development is committed to
sustainable building practices that align with global trends and local needs.
The Prestige project seeks economic benefits and prioritizes long-term
environmental sustainability, ensuring resilience against climate change.
Projects like Prestige elevate the quality of life for both
residents and visitors. Improved infrastructure and services are set to
transform the Kotoka area into a vibrant hub for living and working, fostering
community development and attracting a diverse population. The Prestige
development significantly enriches Ghana's construction sector, particularly
around Kotoka International Airport, by bolstering infrastructure, generating
employment, attracting investment, and supporting tourism initiatives,
positioning real estate projects as vital components in shaping the nation's
economic landscape.
Location is crucial in real estate investment, and proximity
to transportation hubs significantly enhances property values. As Ghana’s
primary airport, Kotoka International Airport serves as an essential gateway to
West Africa, improving accessibility for nearby properties and attracting
domestic and international tenants. The airport’s ongoing expansion is
projected to increase passenger capacity and upgrade facilities, driving more
air traffic and raising demand for both residential and commercial spaces in
the vicinity. This trend mirrors global urbanization dynamics, where proximity
to major transit routes is increasingly sought after.
The rising influx of business travelers, and international
students in Ghana has escalated the demand for high-quality residential
properties. Off-plan developments near the airport present unique investment
opportunities in both short- and long-term rental markets. Living close to the
airport offers lifestyle advantages, such as convenient access to international
travel and nearby upscale amenities like dining and healthcare facilities. The
blend of residential and commercial spaces in emerging neighborhoods around
Kotoka fosters a vibrant community appealing to diverse residents.
Currently, the economic momentum and strategic positioning of
Kotoka International Airport render it a prime area for real estate investment.
0 Comments