Key Facts for Ghanaian Investors

As Ghana’s cedi continues to face pressure against major currencies, trading at GH¢10.50 to the US dollar in recent months, a growing number of wealthy Africans are looking beyond their borders to preserve capital and generate returns. While Ghanaians have traditionally invested heavily in local real estate, a trend emerging among Nigerian and Kenyan high-net-worth individuals offers valuable lessons: strategic property investments in stable markets like Dubai.

For investors exploring this option, understanding how to buy properties in Dubai has become increasingly important as the city’s market grows more accessible to international buyers through clearer regulations and flexible payment structures.

Ghana’s real estate sector has long been viewed as a wealth preservation tool, but the sector faces unique challenges. Currency depreciation erodes the value of cedi-denominated assets when measured in hard currency terms. For Ghanaians who earn in foreign currency, send remittances, or plan for international education and retirement, this creates a fundamental mismatch between their income sources and their asset base.

According to recent industry reports, Nigerian and Kenyan investors have been leading an African investment surge into Dubai’s property market, seeking economic stability and safer investment opportunities in response to similar challenges in their home markets. Real estate analysts attribute this to a combination of factors: transparent ownership laws, attractive rental yields, and the ability to hold assets in stronger currencies.

Dubai’s property sector has undergone significant reforms to attract international capital. Foreign nationals can now own property with full ownership rights in designated freehold zones, with transactions registered through the Dubai Land Department’s digital system.

The market operates on several payment structures that differ from Ghana’s typical full-payment model:

Off-Plan Properties: Developers offer payment plans where buyers pay 10-20% upfront, with installments spread over the construction period (typically 2-4 years). Some plans even extend payments beyond handover, reducing the initial capital requirement.

Ready Properties: These require higher down payments but offer immediate rental income potential. Financing is available to non-residents, though international buyers typically need 25-40% down payments compared to the 10-20% common in Ghana’s mortgage market.

Escrow Protection: Developer payments for off-plan properties flow through government-regulated escrow accounts, offering buyers protection that Ghana’s real estate sector is still working to standardize.

While direct comparison requires context, the data points are instructive:

Rental Yields: Dubai’s residential properties deliver average annual returns of 5-7%, with some mid-market areas achieving 8% or higher. Ghana’s rental market varies significantly by location, but currency depreciation often erodes nominal cedi returns when converted to hard currency.

Price Appreciation: Dubai has seen steady property price growth in prime districts over the past two years, though with market corrections in ultra-luxury segments. Ghana’s property values in cedi terms have appreciated, but dollar-equivalent values tell a different story when factoring in currency movement.

Liquidity: Dubai’s market processes thousands of transactions quarterly with clear pricing transparency. Ghana’s market, while growing, still faces challenges with property valuation consistency and transaction speed.

Tax Environment: Dubai charges no annual property tax, capital gains tax, or rental income tax for individuals. Ghana’s property tax regime, while relatively light, adds to the total cost of ownership.

Dubai’s neighborhoods span a wide spectrum:

Premium Districts (Downtown Dubai, Dubai Marina, Palm Jumeirah): Entry prices from $500,000 to several million dollars. These areas offer lifestyle amenities and potential capital appreciation but lower rental yields (4-5%).

Mid-Market Communities (Business Bay, Jumeirah Village Circle, Dubai Hills Estate): Properties range from $200,000 to $500,000, offering better rental returns (6-8%) and appeal to Dubai’s growing professional class.

Emerging Master-Planned Areas: New developments in zones like Dubai South and Dubailand offer entry points from $150,000, targeting long-term growth as infrastructure expands.

For context, these price points in dollar terms often align with high-end properties in Accra’s prime locations like Airport Residential or East Legon, but with the advantage of being held in a more stable currency environment.

The buying journey follows a structured path:

1. Property Selection: Choose from freehold zones where foreign ownership is permitted. Verify the developer’s track record through the Dubai Land Department’s online portal.

2. Reservation: Pay a booking fee (typically 5-10% of property value) and sign the sale agreement. Legal review is recommended, though contracts follow standardized formats.

3. Payment Schedule: For off-plan properties, follow the agreed installment plan linked to construction milestones. For ready properties, arrange financing if needed.

4. Registration: Upon completion, the Dubai Land Department issues a digital title deed. Transfer fees are approximately 4% of property value, split between buyer and seller.

5. Property Management: Professional management companies handle tenant placement, maintenance, and rent collection, with fees typically 5-8% of annual rent.

Financing Realities: While mortgages exist for non-residents, approval requires documented foreign income, often from employment or business operations outside the UAE. The 25-40% down payment requirement means most African investors buy with cash or substantial equity.

Visa Benefits: Property ownership doesn’t automatically grant residency, but investors meeting certain thresholds can apply for renewable residency visas, offering a secondary benefit for those seeking international mobility.

Currency Transfer: Moving funds from Ghana requires proper documentation and compliance with Bank of Ghana regulations. Many investors structure purchases through foreign accounts or use international banking facilities.

Exit Strategy: Dubai’s secondary market offers reasonable liquidity, though selling costs (including agent fees and transfer charges) typically total 6-8% of the transaction value.

No market is without risks:

Market Cycles: Dubai has experienced boom-bust cycles historically. The current market, while strong, shows signs of potential cooling in luxury segments as new supply increases.

Regulatory Changes: While Dubai has moved toward greater transparency, regulatory frameworks can evolve, affecting ownership rights or taxation in the future.

Currency Risk: While holding assets in AED (pegged to the US dollar) provides stability against the cedi, it offers no protection against broader dollar volatility.

Distance and Management: Investing from Ghana means relying on property managers and lacking the hands-on control possible with local investments.

Liquidity Timing: While Dubai’s market is liquid compared to many emerging markets, selling quickly at desired prices isn’t guaranteed, especially during market downturns.

In a recent interview that generated significant discussion on GhanaWeb, Ghanaian businessman Ken Agyapong expressed regret over purchasing 277 houses, stating he should have invested the capital in businesses instead. This candid admission highlights an important consideration: property investment, whether domestic or international, must align with overall wealth strategy and liquidity needs.

The comment underscores that property should be one component of a diversified portfolio, not the entirety of one’s investment strategy. For Ghanaians considering international property investment, this serves as a reminder to maintain balance between real estate, business ventures, liquid investments, and cash reserves.

Financial advisors typically recommend that international property should represent no more than 20-30% of an investor’s total portfolio, with the percentage depending on individual circumstances, income sources, and liquidity requirements.

For Ghanaians earning in foreign currency or with substantial dollar-based income streams, holding some assets in hard-currency property markets can provide natural hedging. For those primarily earning in cedis, the currency conversion costs and risks may outweigh the benefits unless the investment horizon is long-term (7-10 years minimum).

Dubai’s emergence as a destination for African capital reflects broader shifts in how high-net-worth individuals across the continent think about wealth preservation. Beyond Nigeria and Kenya, investors from South Africa, Egypt, and other markets are exploring opportunities in stable jurisdictions offering:

For Ghana, this trend raises important questions about capital flight versus intelligent diversification. While the country needs domestic investment to drive development, preventing citizens from protecting their wealth internationally isn’t realistic or desirable. Instead, the focus should be on creating local conditions that make Ghana’s market equally attractive: stable currency policy, transparent property rights, efficient title registration, and competitive returns.