Ghana:
Increase in supply, slight decrease in demand [An Occupancy Analysis Of Commercial Real Estate In Accra]
July 23, 2021
Company advice
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Industrial and commercial real estate
In the early half of the 21st health services. This led to an increased demand not only for office space, but also for improved office stock. As demand increased, local and overseas construction companies began investing in commercial real estate in various areas of 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 space. Since the demand for office space has increased over the years, the occupancy rate is low in relation to the supply. The effects of COVID-19 are not being brushed aside as they played a role in the lower occupancy as well. As companies continue to work remotely, the likelihood that some will return to physical jobs is slim, which can further reduce load on the market.
The office evaluation structure in Ghana
Ghana's office rating structure follows global standards created to help real estate agents, investors and other real estate market players justify property prices and to support a thorough analysis of the sector in terms of demand levels, among other things. Similar to the global scene, office buildings in Ghana are classified into Grade A, Grade B and Grade C. The following figure defines the elements considered for each grade.
Figure 1: Quality specifications in the commercial real estate market in Ghana Ghana
Grade A and B offices have better conditions and are more competitive, which attracts a high-end clientele and leads to high rental rates.
The 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 includes the West Ridge and North Ridge counties and is typically used by major financial institutions and government agencies. The offices in the Airport Area, on the other hand, extend over the north of Accra and are occupied by professional services and the oil and gas industry. In addition, the airport area benefits from its accessibility in terms of both the airport and the residential areas and has seen an improvement in office quality recently. Most of the offices in the Accra CBD area are Class B, while most of the Class A offices are located in the airport area.
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The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.
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source https://seapointrealtors.com/2021/07/24/increase-in-supply-marginal-decline-in-demand-an-occupancy-analysis-of-commercial-real-estate-in-accra-real-estate-and-construction/
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