Industrial, and commercial real estate
In the early part of the 21st century,
successive governments placed emphasis on the development of
Ghana's private sector, fueling the influx of foreign investors
and multinational firms into several sectors of the economy,
including insurance, financial, oil and gas, telecommunications as
well as healthcare services. This led to increased demand for not
just office spaces but for an improved office stock. As demand
increased, local and foreign construction companies began to invest
in commercial real estate across various areas in Accra.
Commercial real estate in Accra is generally concentrated in the Accra Central Business District and the Airport areas – these areas have seen massive development of Grade A and B spaces. In as much as there has been an increase in demand for office spaces over the years, the rate of occupancy, relative to the supply, is low. The impact of COVID-19 will not be brushed aside as it has also played a role in the reduced levels of occupancy. As companies continue to work remotely, the probability of some returning to physical working spaces is low, which may further reduce occupancy rates in the market.
The Office Grading Structure in Ghana
Ghana's office grading structure follow global standards created to aid estate agents, investors and other stakeholders in the property market justify property prices and to support thorough analysis of the sector in terms of the level of demand among others. Just as on the global scene, office buildings in Ghana are classified into Grade A, Grade B and Grade C. The figure below defines the elements considered for each grade.
Figure 1: Grade Specifications in Ghana's Commercial Real Estate Market
Grade A and B offices have better conditions and are more competitive, thus attracting high-end clientele and resulting in high rental rates.
Office supply in Accra is centralized in two main areas; Accra's Central Business District (CBD) and the Airport Area. Commercial real estate in the Accra CBD covers the West Ridge and North Ridge districts and is typically occupied by large financial institutions as well as government offices. Whereas, offices in the Airport Area covers the north of Accra and is occupied by professional services and the oil and gas industry. Further, the Airport area benefits from its accessibility, both in regards to the airport and residential areas and has recently seen an improvement in the quality of offices. Most of the offices in the Accra CBD area are of Grade B quality, while most Grade A offices are located in the Airport Area.
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