DOI link for Investment potentials
Investment potentials book
With no data sources to support the construction of valuation-based real estate indices, the chapter analyses price and rental indices from transaction-based dataset; a novelty in the country. The first-ever real estate indices are tracked over 16 years from 1992 to 2007. The price index produced in US$ shows flat or falling prices from 1992 to 1995 followed by a substantial appreciation from the years 1996 to 1999, then a further flat patch in the early 2000s and a final strong surge in prices in the last four years.
Other performance indicators are investigated across submarkets. Yields over the period were fairly flat, averaged at 7.9 percent for the overall market, with a range from +0.6 percent point to –1.0 percent point around that average for submarkets. The Upmarket, Gated and Working-class submarkets showed a spread of risk from 8.4 percent per annum to 21.9 percent per annum for returns of 14.3 percent per annum to 16.6 percent per annum. The chapter establishes that econometric tools could be employed to analyse real estate data in emerging markets such as Ghana to show the impact of property attributes on its price and rent, and also test variations in submarket performance.