In recent
months, Ghana and the outside world watched with expectation and deliberation
as the Ghana Cedi gained a steady appreciation against major international
currencies, particularly the US Dollar. While this may be considered a complex
economic phenomenon - with many factors at play - it presents a golden
opportunity, especially for Cedi earners, to invest in real
estate. For those looking to buy their dream home or
upgrade from their current neighborhood to a more refined, serene environment,
this is a rare moment to make it happen. But why so?
Increasing
purchasing power for Cedi Earners
A greater
opportunity is now opened to Ghanaians who are interested in the real estate
market but have felt priced out of the market. With the increase in the value
of the Cedi, it essentially means that individuals can buy foreign-denominated
products and services at a lesser price but same value. For instance, in
November 2024, the US Dollar sold at a rate of GHC16.50 (according to the existing
Stanbic Bank exchange rate). That meant that a two-bedroom apartment at
Alphabet City, priced at $100,000 exchanged at GHC 1,650,000. However, that
same property (as at June 10 2025) is handsomely priced at GHC 1,050,000.00 due
to the renewed strength of the Cedi.
For some
Ghanaians who earn their income in Cedi, the strengthening of the cedi places
them at the financial position to afford homes without breaking the bank
Lower
Inflation, Low Interest Rates
Reduced
inflation is one of the resultant effects of a currency appreciation. With
inflation under control, interest rate may gradually decrease, hence mortgage
and property loans become more affordable. Cedi earners can enjoy better
lending terms and improved accessibility to a wider range of financing options
for home purchases or real estate investment. Another impact Cedi earners
should look forward to is the possibility of attractive rates for
cedi-denominated loans from banks. This will give local buyers a competitive
edge over foreign investors who may face higher transactional costs due to
currency conversions.
Reduced
Currency Risk for Local Investors
Cedi
volatility has been a longstanding challenge to local investors, and a mismatch
between income and investment currency exposes buyers to exchange rate risk.
However, with a stable or appreciating Cedi, local investors are better
shielded from these uncertainties. This reduced risk reassures Cedi earners and
enables them plan and commit to long-term real estate investing.
Strategic
Timing for First Time Buyers
First Time
buyers with Cedi incomes should view this upward trend of the currency as a
strategic window. Properties prices may remain stable or slightly adjusted
while borrowing conditions are likely to become more favorable. With a stronger
and stable Cedi coupled with an improved microeconomy, now is the time to act.
Whether you are buying to live in, rent out or hold as an investment, entering
the real estate market during a phase of currency strength gives you more value
and flexibility.
Final
Thoughts: Seize the Moment.
The Cedi
appreciation is more than just a microeconomic headline. It is a strategic
advantage to enter or expand into the real estate market. It represents a shift
towards affordability, reduced risk and interest accessibility to quality
housing options. In a dynamic economy, timing is everything. Now is the time to
act.
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