Real estate offers shield against inflation – Consultant

Real Estate Consultant Joshua Amegashie Viglo has revealed that real estate provides a diversified and passive income portfolio while serving as a strong hedge against inflation.

Speaking on Business Breakfast on Zed, Mr Viglo noted that investing in land is particularly advantageous, as land values tend to appreciate faster than inflation rates.

With inflation currently around 15 to 20 per cent, land prices often grow by 25 to 30 per cent, offering investors capital growth beyond the rate of inflation.

“Investors with 300,000 cedis in cash are advised to purchase land of equivalent value, which over three years may appreciate two to three times, while the same amount held in the bank loses value due to inflation,” he stated.

The investment consultant also indicated that the Ghanaian economy is affected by commodity inflation and exchange rate inflation.

However, real estate investment shields investors from both, which explains why developers frequently price properties in dollars rather than cedis.

“Pricing in a stable foreign currency reduces the need for daily price adjustments caused by fluctuations in exchange rates,” he said.

Mr Viglo further stated that owning land not only protects savings from inflation, but building on it can create rental income streams, providing a steady, mostly passive source of income.

He also noted that real estate assets can be leveraged for liquidity through loans or mortgages, with lenders offering up to 70 per cent of the asset’s value without requiring proof of income.

Mr Viglo added that real estate remains a resilient investment strategy amid Ghana’s fluctuating economic conditions, providing both capital preservation and income generation for investors.