Price of 2 plots of land in Ghana
Ghana has more than 90 distinct ethnic groups and languages, and it encompasses tropical coastlines, historic kingdoms, rural farming communities, and modern, bustling urban centers. This diversity is reflected in its land prices. The cost per acre in the capital city of Accra can be more expensive than in rural areas.
The reason for this stark difference in land prices between urban and rural areas is simple. Accra is the largest city and economic hub of Ghana, with over 2 million residents. It is the center of business, trade, tourism, and services.
Demand for land is very high in Accra, which drives prices up. Rural communities have much lower population densities and less commercial activity, which keeps land prices down.
Price of 2 plots of land in Ghana
The price of 2 plots of land in Ghana depends on the location, size, and condition of the land. Two vacant plots recently sold in the posh Airport Residential Area goes for GHS 250,000.
The plots, located along a paved road with utilities access, each measured 0.4 acres. Property values in this neighborhood average around GHS 625,000 per acre.
In rural areas, land prices are significantly lower. Two 1-acre agricultural plots in the Ashanti Region’s Amansie West district sold for GHS 12,000 each. Lacking paved road access, electricity, and water infrastructure, farms in this area sell for GHS 1,000 to GHS 5,000 per acre.
Factors that affect the price of 2 plots of land in Ghana
1. Location
Location is one major determinant of land value. Land in urban centers such as Accra and Kumasi demands higher prices due to greater economic activity and infrastructure. Land near major roads and transit hubs also commands higher prices. Rural areas have lower land prices, though prices may be rising in peri-urban areas as cities expand.
2. Land Use
Land zoned for residential, commercial, or industrial use will have higher values than agricultural land. Lands reserved for public uses like parks have little sale value.
3. Scarcity
Scarcity increases land prices. In dense urban areas like Accra, vacant land is limited and prices reflect the high demand. Even rural areas may see land prices climb as populations rise, putting pressure on the fixed supply.
4. Investor speculation
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Investor speculation can drive up prices, especially for commercial land in growing urban areas. Expectations of future development potential get built into current sale prices.
5. Economic growth
Economic growth trends affect land prices across Ghana. As incomes and business activity rise, demand for land increases. Ghana’s strong GDP growth since the early 1990s has been a factor in rising land prices nationwide.
6. Government policies
Government policies also play a role. Property taxes, land use regulations, infrastructure investments, and interest rates set by the central bank can all impact land values. Stable policy supports steady price appreciation.
7. Demand and supply
The price of land is also affected by the forces of demand and supply. If there is more demand for land than there is supply, then the price of land will tend to increase. This is because sellers will be able to command a higher price for their land in a competitive market.
Conclusion
Buying land in Ghana can be a complex process, but it can also be a rewarding one. By doing your research, getting professional advice, and being prepared to bargain, you can find the right piece of land for your needs.
