A Market Research Study on Selected Geographic Zones in Accra for the Development of a 50 – 100 Multifamily Rental Housing Unit.

EXECUTIVE SUMMARY A leading real estate developer is looking into developing 50-100 multifamily rental units at a central location in Accra. To do this, the developer needs to understand the current rental rates of multifamily units in Accra, the key areas that have a lot of these multifamily units and the profile of the tenants. As such, the goal of the study is to conduct a market research on selected geographic areas and to provide accurate market intelligence that will help capitalise on the demand for well-built, strategically located residential properties within close proximity to amenities and the key central business district of Accra. In conducting the market research, the identified data sources includes Ghana Real Estate Developers Association (GREDA); the four main residential real estate online market platforms; Property Management Company in Ghana; current and potential tenants in Accra and property owners and managers in the selected geographic zones in Accra. After the review of the literature, internet research and interviews with the above-identified data sources, the key insights include: (a)The demand for rental accommodation is dominated by the people of the ages 25 – 45 years. (b) The most attractive geographic zones are areas in and around Cantonment and Roman Ridge. (c) To capture the perceived value of the potential tenants, the client needs to set an average rent-charge of about GHS 2,808.33 for a two bedroom unit and GHS 3,866.67 for a three bedroom unit in areas around Cantonment. For areas around Roman Ridge, the set average rent charge should be about GHS 3,375 for a two bedroom unit and GHS 4,800 for a three bedroom unit. The analysis was done at the level of geographic zones; this classification was defined for the purpose of this research. Further market research will need to be conducted within Zones 1 and 4, to select the possible prime area that best fits the needs of the client.