Almost every yield figure you will be quoted for an Accra property is a gross figure, and gross yield is a marketing number. The distance between gross and net is where returns are actually won or lost.
Gross versus net
Gross yield is annual rent divided by price — simple, and misleading, because it ignores every cost of actually running the asset. Net yield subtracts those costs first. In a market like Accra, the two can diverge sharply, and a headline that looks strong can net out to something ordinary.
The costs that erase the gap
- Voids. Time between tenants, and the reality that annual advance-rent norms can mask irregular occupancy.
- Management and letting. Agent fees, finding and vetting tenants, handling turnover.
- Maintenance and services. Water storage, power backup and upkeep are non-trivial and ongoing.
- The currency mismatch. Rents are often set or realised in cedis while the investment and its opportunity cost are measured in dollars — cedi depreciation quietly erodes a dollar-denominated return.
A strong gross yield in a depreciating currency is not a strong return. Always convert the maths back into the currency you actually measure your wealth in.
How to sanity-check a yield
Start from realistic rent (transacted, not asking), subtract a full year of running costs and a realistic void allowance, then translate the result into your home currency at a conservative exchange assumption. If it still stacks up, it is real. And remember that yield says nothing about capital risk: a high-yield property in a flood zone can still lose the principal, so pair the yield maths with a risk check. The wider investment case is in is real estate a good investment in Ghana.
Frequently asked
What rental yield can you expect in Accra?
Gross yields quoted in Accra can look attractive, but the meaningful figure is net yield after voids, management, maintenance and the dollar-cedi mismatch, which is materially lower. Rather than trusting a headline percentage, build the number from transacted rent minus a full year of running costs and a realistic void allowance, then translate it into your home currency at a conservative exchange rate.
Is gross or net rental yield more important?
Net yield, without question. Gross yield ignores every cost of running the asset and every currency effect, so it flatters the picture. Net yield — rent after voids, management, maintenance and services, translated back into the currency you measure your wealth in — is what you actually earn. A strong gross figure in a depreciating currency can net out to an ordinary return.
Why is net yield lower than gross in Accra?
Because the running costs are real and the currency works against a dollar investor. Voids, letting and management fees, and ongoing maintenance and services all come out of gross rent, and rents realised in cedis lose value against the dollar as the cedi depreciates. Together these can turn an attractive gross figure into a modest net one, which is why the net calculation is essential.