The resort and second-home market differs in a number of ways from the primary residential market. Buyer interest ranges from small, rustic getaways to luxury properties, and includes an international clientele as well as the investment and retirement markets. Beach resort property investment is new to Ghana and very few know how rewarding it can be. However, buying, selling, or managing second homes in a resort, recreational, and/or vacation destination requires understanding of the recreation and lifestyle market, tax treatment of vacation and second homes, and real estate investment.
Let me just take you back a couple of months, when the borders to most countries were closed, and everyone was looking for a weekend staycation. I speak for myself in that it was often a struggle to find a decent quality weekend getaway option. Worldwide, vacation home sales have been surging during the pandemic, according to NAR's recently released report. The increase in local tourism has increased significantly as a result of uncertainty with travel restrictions to foreign countries, but at the same time because of the loosening of Covid restrictions in Ghana. This has led to back-to-office campaigns but not only. Senior managers who have the luxury of working from home continue to have corporate retreats and regular off-site strategy meetings in hotels around the city. This is a sector of the market that is greatly underestimated and undersupplied.
Tourism in Ghana is largely underdeveloped, with pristine beaches and well-preserved nature. There is a high demand for high-end (Luxury -5 Star) Hotels in the west-african region with most residents other tourists flocking to destination such as Zanzibar, Seychelles, Mauritius, Dubai, Caribbean etc. to experience what is currently unavailable in Ghana. Beach Resorts are a very young segment in the Ghanaian market and Covid was undoubtedly the propeller of this new interest.
It is worth noting that following the inauguration of Kotoka International Airport - Terminal 3 in 2018, capable of handling 5 million travellers per year, international arrivals to Ghana increased by 18% in 2019 only to be halted by the pandemic. Forecasts for 2021 showed a further increase in arrivals of close to 10% with tourism revenues in excess of $2 billion.
Having run conservative investment assumptions, IRRs on luxury beach resorts are in excess of 30% per annum. Savvy investors know the importance of diversifying your property portfolio and beach resort is one of the newest and most rewarding ways to go. Land is available, though the purchase process can be cumbersome. Having a specialist help guide you through the process is important in finding the right location as well as completing the right due diligence.
At Akka Kappa (www.akkakappaghana.com) you have the right expertise, market knowledge and contacts to make your luxury beach resort a reality! What are you waiting for? Follow your desire and take advantage of these investment opportunities!