Ghana’s stock of industrial real estate which presently stands at approximately 256,000 m2 is a clear indication that the industrial real estate sector is gradually gaining popularity among both local and international real estate investors. Here is why.
- The government of Ghana is dedicated to developing new rail lines and roads
Ghana government’s dedication to rehabilitating, extending and developing completely new rail lines for both passengers and freight, as well as road transport is a big boost to the industrial real estate sector. The construction of Tema Port-Mpakadan (Akosombo) railway project is a boost to the industrial sector. The project has the ability to promote regional trade and economic development, through efficient transportation of goods and people.
Moreover, the ongoing expansion of the N1 to a six-lane highway is set to facilitate the movement good and services within and outside the country. The project when implemented will increase connectivity between Ghana and other West African countries such as Togo, Benin and Nigeria. It will also improve connecting roads and access points between Tema and inland destinations.
- AfCFTA and 1D1F present prospects for industrial real estate.
Supporting policies such as the One District One Factory (1D1F) and the Africa Continental Free Trade Area (AfCFTA) agreement is changing the narrative of the industrial real estate sector. The siting of AfCFTA’s headquarters in Accra makes Accra a strategic location to attract industrial real estate investments. Also by liaising with financial institutions to provide support to businesses who seek to go into the production of raw materials, the One District, One Factory is providing an enabling environment for the development of industrial stock of real estate.
- Cargo Centres are a key point of attraction to logistic providers.
Key investments into the industrial real estate sector is increasing Ghana’s access to the global trade market. Ghana Airport’s Cargo Centre which was opened at the Kotoka International Airport with 10,000 square metre warehouse facility is a key point of attraction logistic providers. The centre has fully automated storage and retrieval system with over 2,000 pallet positions. Also in the pipeline is the construction of another Cargo Centre in Komenda.
- The growth of E-Commerce requires industrial real estate.
With the emergence of ecommerce platforms such as Jumia, Jiji, Hubtel, Plendify, among others, the growth of e-commerce has continued in an upward trajectory. The growth of online retail requires warehouses that meet international standards to facilitate the storage and distribution of goods.
- The industrial real estate sector presents attractive yields.
The industrial real estate sector presents the most attractive yield among all other real estate sub-sectors in Accra. Average industrial yields range from 11% to 14%.
Read IMEK Africa’s Accra City Report to know more about the dynamics of Accra’s real estate sector.
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