10 compelling reasons why investing in a gated community is the most lucrative real estate investment

By Daniel KONTIE

In my previous article on alternative financing options for real estate development published on February 23, 2025, I made a figurative remark about the real estate investment prospects in Ghana.

I am sure many might have taken it lightly and for granted. However, the truth is, despite the industry’s unique challenges, it still remains one of the most promising sectors for investment in the Ghanaian economy.

However, one’s success depends largely on the level of industry information one has, the choice of the type of real estate investment to undertake, and most importantly, one’s strategy, which must not be anything, less than a tactically superior blueprint that can deliver prompt results.

The purpose of today’s article is give you a brief historical review of the rise to prominence and demand for gated communities in Ghana, the factors driving this demand and what makes it the most lucrative investment option in the real estate sector.

To begin with, the rise in demand for gated communities started back in the 90s when the Ghanaian economy experienced a dramatic expansion because of the policies of the neoliberal regime. The regime witnessed a mass exodus of people into urban centers such as Accra, Kumasi, Tokoradi etc. This development led to a rise in demand for upscale housing options.

So as the economy expanded so did the middle class who sought secure and exclusive living spaces as safe havens from the congested, noisy and crime-ridden urban central areas. So, gated communities thrived as a response to this demand, offering private and secure homes with modern amenities, perimeter walls, electronically controlled access gates, advanced CCTV surveillance systems, enhanced telecommunication services such as broadband internet connectivity, home land lines etc.

Today gated communities have evolved significantly beyond just the provision of security and exclusivity; they offer a blend of security and luxury state-of-the-art amenities such as swimming pools, gymnasiums, supermarkets, medical centers, pharmacies, recreational facilities et cetera. These communities have suddenly become symbols of prestige, reflecting one’s perceived success and affluence in society.

Now come with us as we walk you through the ten (10) compelling factors driving this demand for gated communities and how developers have leveraged on this demand to amass wealth for themselves, as we show you also, how one can take advantage of this demand whilst the opportunity still exist.

These factors includes but not limited to the following; the growing need for security as insecurity grows, the growing need for privacy; the increasing need for class in society; the consistent middle class growth, the increasing need for peace of mind and serenity, land litigation and encroachment, value appreciation and investment appeal, easy access to social amenities, family values priority, sanitation and sustainability consciousness etc.

The Growing need for Security

Security has been a major concern and priority to many Ghanaians even though the national crime statistics looks good from a global perspective. This state of security consciousness has led to individuals trying to explore housing options that provide some level of security leading to the high demand for gated communities. I must admit that despite the challenges associated with gated communities; it is still by far the best option when it comes to security assurance for residence.

The provision of the perimeter walls with man guard at the gates and in some cases, CCTV surveillance systems are key to maintaining some level of security in gated communities. There are even some communities where visitors will have to be interviewed at the gate and subsequently a telephone call placed on the resident in question to confirm knowledge about the visitor before he is allowed in. The provision of these security measures made gated communities comparatively safer, thereby causing a consistently high demand for gated communities since its inception in the housing sector in Ghana.

Growing need for Privacy

It is important to know that the paradigm shift from the African extended family system to the western nuclear family style has a significant impact on the demand type of housing. People are more particular about their nuclear family and its privacy and the concept of gated communities is the only concept that appears to provide this level of privacy. In gated communities, hardly will you find stray dogs, goats etc loitering around or surprise visits from extended family members, friends, creditors, spies, intruders etc.

It is sometimes even difficult for you to know your next door neighbor in gated communities. This shows the level of privacy one can have living in a gated community. Gated communities offer a high sense of exclusivity, which appeals to those who value their privacy and would want to distinguish themselves from the rest of society. Today our society is full of people who are privacy oriented hence, the high demand for gated communities in Ghana.

Growing need for Social class

In Ghana, living in a gated community is perceived a symbol of high social class reflecting wealth and success. This is the more reason why most often, prices of goods and services in or around gated communities are expensive compared to the regular community. Prices charged for goods and services are high because of the perception that people living in gated communities are wealthy. So, in order to have that sense of being classified as wealthy and influential, people will go the extra-mile to rent or acquire homes in gated communities, contributing to the persistent increase in demand for gated communities.

Consistent Middle Class Growth

Majority of Ghana’s gated communities are a mix of low-end and mid-end properties which fell within the affordability of the middle class. Therefore, a consistent growing middle class will naturally lead to higher demand for these properties as this class is in desperate need of security, exclusivity and serenity. Ghana’s middle class has grown significantly over the years to about 46% since 2013 according to the African Development Bank (2013) and to a little over 50% in 2023 according to Worldometer (2024). The upward growth trajectory of the middle class will continue to push demand for gated communities undoubtedly.

The increasing need for serenity and peace of mind

Today the world is full of so much stress, from office frustrations to family pressures etc. This increasing stress has made many people trying to seek quiet abodes where they can have a quiet and serene environment to retire after the bustle of the day. A quiet place called home guarantees good rest and enables the individual put their thoughts together to prepare for the next day. Interestingly again, gated communities seem to provide this kind of environment.  For example, unlike the regular community where a neighbor can scream, play music at high volumes and you virtually have no control, many gated communities have policies for noise control.

Even for one to organize a program such as birthday parties naming ceremonies that requires the use of heavy sound instruments, one has to apply to estate management for a permit to do so. Recently, I had a new neighbor in the gated community where I live. This gentleman came in with wild dogs that can make so much noise disturbing our peace.

It only took a phone call to estate management and those dogs were removed within one week. Even until now, this gentleman has idea who reported him. This is the beauty of living in a gated community. This would have been very difficult to do with a neighbor in regular and open community. The serenity of environment, giving peace of mind contributes partly to the increasing demand for gated communities in Ghana.

The increasing concern of land litigation and encroachment

Land litigation and encroachment has been a major challenge in the real estate and infrastructure sector, with traditional authorities and families selling lands multiple times to different buyers. On the flipside are buyers who also try to encroach on the lands of other neighbors, the issue of land guards, land litigation cases that can run over decades etc. To avoid this hustle, many will resort to these institutional developers (gated communities), hence the demand for gated communities.

By buying from a gated community developer, all the above troubles are taken off one’s shoulders. Apart from these, the time that will be spent in conducting a search at the lands commission, getting one’s title registration done, building permit acquisition, time to supervise the construction process, managing material supply, quality control, on-site material theft etc becomes a huge responsibility for many to juggle between work and building their own property. This is one of the major reasons why patronage for gated communities is high, contributing partly to the higher demand for gated communities.

Value appreciation and investment appeal 

Values of properties in gated communities appreciate faster than regular open communities because of the amenities, security, exclusivity, etc that gated communities provide. This has made investing in properties in gated communities so appealing and has attracted many investors looking for options to diversify their investment portfolios. This has made demand for gated communities increasingly higher as many investors acquire multiple units for either long-term rental purposes or short-term rental (AirBnB).

Easy access to social amenities

Unlike the regular open communities, gated communities provide a wide range of social amenities such as community supermarkets, swimming pools, schools, police stations, fire stations, sports and other recreational facilities. These are major attractions to many people as they will not have to drive distances to get their medications, groceries and cocktail et cetera for the family, thereby driving demand for these gated communities.

Family values priority

Some people believe training their children in gated communities may lead to good moral outcomes. They believe children in gated communities have comparatively lower chances of being influenced by delinquent street children. So, they send their wards to high profile schools out of reach of regular community and street children and pick them back home to a confined community where movement of the children can easily be monitored. This may sound a little weird but it is the truth and has been one of the influential factors in the choice and preference for gated communities.

Sanitation and environmental consciousness

Unlike the regular open communities where in most cases dust, unpaved roads, irregularly planned layout, open and choked drainage systems, open defecation, poor toilet facilities, unapproved structures, pedestrian walkway congestions, littering etc, becomes the order of the day, gated communities are most often well planned, with inner road networks paved. Estate management takes over waste management, leading to cleaner drainage systems, sewerage management etc. Besides, some gated communities have factored in and created greeneries which are constantly maintained to ensure air quality and moderate community temperature. The quest for good sanitation and environmental consciousness leads to a higher demand for these gated communities.

The investment opportunities for developers and investors

The above-discussed variables are what led to the ever-increasing demand for gated communities in Ghana. Now, here is where the jackpot is. This demand presents a huge opportunity for investors to maximize returns on their real estate portfolios within a shortest possible time. This also give developers the negotiation power by virtue of the housing shortage to adopt the off-plan development model where money of the buyers are been used to build these properties for them.

The off-plan model gives developers interest-free capital from buyers, which can be turned around in many ways to maximize turnover while the construction process progresses. It also gives the developer regular revenue flow because of the payment schedule the model works with. With this, many developers are able to draw portions of their markups from the project inception to completion. This enables them to acquire other lands for subsequent developments whilst others put some of the revenues into other investments, rake-in good turnover before plowing it back into the project. However, let me be quick to warn that off-plan is a delicate tool and must be managed carefully.

Apart from the off-plan opportunity that developers/investors can use to maximize wealth, another huge residual income awaits the developer after the completion of the community. After handing over these properties, the developer puts in place a mandatory estate management team where maintenance, repairs, sanitation, security services etc are provided at a fee.

Today many of the big names in the industry are no longer developing like they use to do in the 90s and in the 2000s. The likes of the Manet Courts, the Regimanuels, the Emef Estates etc, but their directors are making cool cash on their retirement from estate management. This is the truth about the industry and now is the time for you to tap into this opportunity today.

But let sound a note of caution, don’t get too excited and jump into it, seek expert’s counsel and this is where the expertise of the Africa Continental Engineering & Construction Network Ltd comes in. We are developers, Brokers (Lands, Residential homes and Industrial properties), Off-plan Designers and Implementing Experts, Property Registration and Advisory Services Experts, Green Building Experts, Real Estate Foreign Direct Investment Facilitators and Advisory Services, General Construction works, Construction Business Development et cetera. To stay updated on industry trends, do also remember to subscribe to the Business & Financial Times Newspaper to read our articles in the “Construction & Real Estate Digest”.

References

• Worldometer (2024): Ghana Population demographics and Income Distribution; Report on Average Incomes.
• African Development Bank (2013): Demographics and Income Distribution Report of Ghana Population.
• Mensah (2005): Neoliberal Structural Adjustment Programs and Urban Poverty: The case of Ghana; University of South Australia.

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