Real estate development and construction sectors drive economic rebound, creates jobs
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, Youssef Aitour, Co-Founder and Managing Director of i2 Development, emphasised 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,” 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.
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.
