Ghana’s 2025 Real Estate Law Shakeup: What Investors Must Know Now

Table of Contents

• Executive Summary: Key Changes in Ghana’s Real Estate Laws (2025–2030)
• Regulatory Bodies and Their Evolving Roles in Ghana’s Property Market
• Land Ownership Rules: Foreigners, Locals, and Leasehold Nuances
• Licensing and Registration: New Compliance Requirements for Developers and Agents
• Taxation and Fees: 2025 Updates on Property, Capital Gains, and Stamp Duty
• Environmental and Zoning Laws: Impact on Urban and Rural Development
• Anti-Money Laundering & Due Diligence: Stricter Standards for Transactions
• Dispute Resolution: Legal Processes and Recent Case Law
• Key Statistics: Market Growth, Investment Trends, and Regulatory Enforcement
• Future Outlook: Anticipated Reforms and Policy Directions Through 2030
• Sources & References

Executive Summary: Key Changes in Ghana’s Real Estate Laws (2025–2030)

Ghana’s real estate regulatory landscape is undergoing significant transformation as the country seeks to enhance transparency, investor protection, and sectoral growth from 2025 onwards. Recent legislative activity, spearheaded by the Parliament of Ghana and implemented by the Lands Commission and the Ghana Revenue Authority, marks a decisive shift toward formalizing property transactions and strengthening compliance mechanisms.

• Land Act, 2020 (Act 1036) Implementation: Full implementation of the Land Act, 2020 is being prioritized. This Act consolidates and updates disparate land laws, introduces compulsory land title registration, and formalizes dispute resolution mechanisms. In 2025, sector regulators are intensifying efforts to digitize land records and streamline registration, with the goal of reducing registration timelines by 50% over the next five years (Lands Commission).
• Real Estate Agency Act, 2020 (Act 1047): The Real Estate Agency Council (REAC) is now operational, licensing brokers and agents to enhance professionalism and reduce fraud. By 2025, all intermediaries are mandated to register with REAC, with unlicensed practice subject to prosecution (Ministry of Lands and Natural Resources).
• Anti-Money Laundering (AML) Compliance: In alignment with Financial Action Task Force (FATF) recommendations, Ghana is tightening AML requirements in real estate. The Financial Intelligence Centre now requires reporting of suspicious transactions, especially those involving foreign buyers or large cash payments.
• Property Tax Reforms: The Ghana Revenue Authority is rolling out new digital platforms for property tax assessment and collection, aiming for a 30% increase in compliance by 2027.
• Foreign Ownership and Leasehold Limits: The constitutional 50-year leasehold cap for foreigners remains, but enhanced monitoring and registration are being enforced to prevent circumvention (Lands Commission).

Key statistics highlight the sector’s rapid evolution: by mid-2025, over 70% of urban land parcels in Accra and Kumasi are projected to be digitized, and the average land registration time is expected to fall below 90 days. The outlook for 2025–2030 is characterized by increased regulatory certainty, a crackdown on fraud, and greater investor confidence, supported by a robust compliance framework and ongoing digital transformation. These reforms are poised to reshape Ghana’s real estate sector, promoting sustainable growth and aligning the market with international best practices (Lands Commission).

Regulatory Bodies and Their Evolving Roles in Ghana’s Property Market

Ghana’s real estate sector has undergone significant regulatory evolution in recent years, with the government intensifying efforts to improve transparency, investor protection, and sustainable urban development. Central to this transformation is the establishment of the Real Estate Agency Council (REAC), inaugurated under the Real Estate Agency Act, 2020 (Act 1047). The REAC serves as the principal regulatory authority, mandated to license, regulate, and monitor real estate brokers, developers, and agencies operating within the country.

Since the operationalization of REAC in 2022, the agency has introduced a digital licensing platform, simplifying compliance for market participants and enhancing oversight. By 2024, over 2,000 practitioners and agencies had registered with the council, a number projected to rise as enforcement intensifies in 2025 and beyond. The council regularly updates its compliance requirements—including mandatory continuing professional development and strict anti-money laundering (AML) protocols—to align with global best practices and address Ghana’s vulnerability to illicit financial flows in property transactions (Real Estate Agency Council).

The Ministry of Lands and Natural Resources also plays a crucial role, overseeing land administration reforms and the digitalization of land records through the Ghana Land Administration Project (LAP). The Land Use and Spatial Planning Authority (LUSPA) is responsible for enforcing planning and zoning regulations, ensuring orderly urban expansion and compliance with environmental standards. The synergy between these bodies is intended to reduce land disputes, streamline property registration, and improve the overall ease of doing business in real estate.

Additionally, the Financial Intelligence Centre actively collaborates with REAC to monitor property transactions for money laundering risks, requiring all sector participants to implement customer due diligence procedures. Meanwhile, the Ghana Revenue Authority enforces tax compliance on property transactions, and recent legislative amendments seek to clarify tax obligations for both domestic and foreign investors.

Looking ahead to 2025 and the subsequent years, regulatory bodies are expected to deepen digital integration, expand stakeholder engagement, and intensify compliance checks. With urbanization accelerating—over 57% of Ghanaians now reside in urban areas—regulatory vigilance is anticipated to remain high, with further reforms aimed at fostering investor confidence and ensuring sustainable growth in Ghana’s property market (Ghana Statistical Service).

Land Ownership Rules: Foreigners, Locals, and Leasehold Nuances

Ghana’s land ownership framework is grounded in the 1992 Constitution and the Land Act, 2020 (Act 1036), which together delineate the rights and limitations for both citizens and foreigners in acquiring and holding interests in land. The regulatory landscape is shaped by customary tenure systems, statutory law, and recent reforms aimed at streamlining land administration and enhancing security of tenure.

For Ghanaians, land ownership is generally permitted under both customary and statutory tenure arrangements. Much of Ghana’s land (estimated at nearly 80%) is held under customary title by families, clans, or stools/skins, with the remainder under state or private freehold. The Lands Commission oversees the registration and administration of land rights, promoting transparency and reducing disputes.

Foreign nationals face more stringent restrictions. The Constitution explicitly prohibits non-citizens from holding freehold interests in land. Instead, foreigners may only acquire leasehold interests, limited to a maximum term of 50 years (renewable), while Ghanaian citizens can secure leases up to 99 years. This restriction applies to both direct purchases and indirect holdings through corporate vehicles where foreign ownership exceeds local participation. These provisions are codified and enforced under the Land Act, 2020 (Ministry of Lands and Natural Resources).

Leasehold arrangements in Ghana require careful compliance with statutory procedures. All land transactions, whether for locals or foreigners, must be registered with the Lands Commission to become legally enforceable. The Act has introduced mandatory consent and valuation provisions to prevent unlawful alienation and safeguard the interests of all parties. Failure to comply may render transactions void or subject to forfeiture. The Commission has also rolled out digital platforms to streamline title registration, reducing delays and improving transparency.

Recent data from the Lands Commission indicates a steady increase in leasehold transactions involving both local and foreign individuals, reflecting growing investor confidence post-implementation of the new Land Act. However, land litigation remains a challenge, largely due to overlapping claims and inadequate documentation, especially within customary tenure areas.

Looking ahead to 2025 and beyond, the government continues to prioritize reforms—such as digitization of land records and public education campaigns—to further clarify land rights and encourage both domestic and foreign investment in real estate. Legislative and administrative updates are expected to reinforce due diligence requirements for foreign lessees and support dispute resolution mechanisms, ensuring Ghana’s land sector remains attractive yet compliant with national interests.

Licensing and Registration: New Compliance Requirements for Developers and Agents

In response to persistent challenges such as land disputes, fraudulent transactions, and an expanding property market, Ghana has intensified its regulatory framework for real estate licensing and registration. The Real Estate Agency Act, 2020 (Act 1047) marked a pivotal development, establishing the Real Estate Agency Council (REAC) to supervise, license, and regulate real estate practitioners. By 2025, the REAC’s compliance regime is fully operational, impacting developers, brokers, and agents nationwide.

Under Act 1047, all real estate developers, agents, and brokers must obtain licenses from the REAC before engaging in property transactions. The licensing process entails meeting educational and professional requirements, background checks to prevent money laundering, and adherence to an enforceable code of conduct. The REAC also maintains a public register of all licensed practitioners, enhancing market transparency and consumer protection (Real Estate Agency Council).

From 2024 onward, the Council has intensified compliance monitoring, requiring annual license renewals and continuous professional development. As of early 2025, over 3,500 practitioners have registered, but the Council estimates that hundreds of unregistered entities are yet to comply. Compliance audits and enforcement actions, including fines and suspension of licenses, have increased, with the Council targeting both urban and rural operators.

Land registration processes have also been strengthened through integration with the Lands Commission and the digitization of records. Developers must now demonstrate clear land title and registration before project approvals. The Lands Commission’s digital platform, operational since 2023, is expected to reduce registration times and curb fraudulent land sales, a recurring issue in previous years.

Looking ahead, the regulatory environment is expected to become even stricter. Amendments to the Real Estate Agency Act are under discussion to increase penalties for non-compliance and expand the REAC’s mandate to cover property management firms. Additionally, Ghana’s alignment with international anti-money laundering standards means that agents and developers are now obligated to report suspicious transactions, as underscored by the Financial Intelligence Centre.

• By 2025, all real estate agents and developers must be licensed, with annual renewals and ongoing training.
• Unregistered operators face significant penalties and possible criminal prosecution.
• Digitized land and practitioner registers improve transparency and transaction security.

The outlook suggests a more disciplined and transparent real estate sector, with robust compliance mechanisms that protect investors, buyers, and the broader public.

Taxation and Fees: 2025 Updates on Property, Capital Gains, and Stamp Duty

The regulatory environment for real estate taxation in Ghana continues to evolve as the government refines fiscal policy to increase revenue and enhance compliance. As of 2025, three principal tax categories remain central to property transactions: property rate, capital gains tax, and stamp duty. Recent updates reflect both legislative amendments and administrative reforms, with significant implications for buyers, sellers, and investors.

• Property Rate: The property rate, a form of local tax, is levied annually by Metropolitan, Municipal and District Assemblies (MMDAs). Recent digitalization initiatives by the Ghana Revenue Authority (GRA) have integrated property rate collection into the national tax framework, improving transparency and compliance. The GRA now administers property rates through the Unified Common Platform, streamlining payments and reducing leakages. Projections suggest property rate revenue will rise by at least 20% in 2025 as more properties are assessed and billed electronically.
• Capital Gains Tax: Gains from the sale of real estate attract a capital gains tax of 15%, consistent with the Income Tax Act, 2015 (Act 896) and subsequent amendments. Exemptions apply for transfers between spouses, gifts to certain relatives, and transactions involving principal residences under specific conditions. Legislative reviews in late 2024 reaffirmed the 15% rate but introduced stricter enforcement measures, including mandatory tax clearance certificates prior to property registration. This aims to address widespread underreporting of sales values.
• Stamp Duty: Stamp duty is payable on instruments relating to property transfers, with rates ranging from 0.25% to 1% of the property value, as stipulated in the Stamp Duty Act, 2005 (Act 689). The Lands Commission in 2025 continues to collaborate with the GRA to digitize the assessment and collection process, reducing processing times and curbing under-declaration of property values.

Compliance rates have improved following the rollout of electronic tax systems, but challenges persist, particularly regarding valuation and enforcement in informal settlements. The government’s 2025–2027 outlook includes plans for further integration of GIS data and inter-agency collaboration to widen the tax net and ensure equitable assessments.

Stakeholders should monitor the Ministry of Finance and Ghana Revenue Authority for upcoming directives, as ongoing reforms may adjust rates or introduce new compliance requirements in line with Ghana’s fiscal consolidation agenda.

Environmental and Zoning Laws: Impact on Urban and Rural Development

Ghana’s environmental and zoning laws are pivotal in shaping the trajectory of urban and rural development, directly influencing real estate activities across the country. Under the Environmental Protection Agency Act, 1994 (Act 490) and the Land Use and Spatial Planning Act, 2016 (Act 925), a comprehensive legal framework mandates environmental assessment, zoning compliance, and sustainable land utilization for all development projects. These statutes are enforced by the Environmental Protection Agency (EPA) and the Land Use and Spatial Planning Authority (LUSPA), both of which have intensified oversight in recent years to address rapid urbanization and ecological concerns.

All real estate developments—residential, commercial, and industrial—require Environmental Impact Assessments (EIAs) before obtaining construction permits. The EPA’s 2022 compliance report indicated that 87% of major urban projects in Accra and Kumasi underwent EIA review, with a growing trend of enforcement actions against non-compliant developments. Zoning regulations, as stipulated by LUSPA, demarcate land for specific uses and are central to the current government’s “Ghana Beyond Aid” agenda, which prioritizes orderly growth and green infrastructure. Notably, the 2023 amendments to planning guidelines introduced stricter buffer zone requirements for wetlands and rivers, directly affecting both urban expansion and rural land conversion.

In rural settings, new regulations increasingly restrict agricultural land conversion to real estate to preserve food security and biodiversity. The government’s ongoing digital land records modernization—projected for completion by 2026—is expected to reduce boundary disputes and facilitate more transparent zoning compliance (Land Use and Spatial Planning Authority). In urban areas, greater scrutiny on mixed-use developments and informal settlements has led to regularization programs, with LUSPA reporting over 2,500 unauthorized structures demolished or retrofitted in 2024 alone.

Looking ahead to 2025 and beyond, Ghana’s real estate sector is poised for increased regulatory complexity. Major urban centers will see further tightening of zoning and environmental enforcement, while rural districts are anticipated to benefit from targeted sustainable land management initiatives. Developers must integrate environmental compliance from project inception, as the EPA and LUSPA continue to roll out digital permitting and monitoring systems. These shifts are expected to enhance long-term market stability, advance climate resilience, and align real estate growth with Ghana’s sustainable development commitments (Environmental Protection Agency).

Anti-Money Laundering & Due Diligence: Stricter Standards for Transactions

In recent years, Ghana has intensified its efforts to combat money laundering within the real estate sector, recognizing its vulnerability to illicit financial flows. The Financial Intelligence Centre (FIC), the primary body responsible for anti-money laundering (AML) oversight, continues to enforce and update regulations in line with international standards. The passage and implementation of the Anti-Money Laundering Act, 2020 (Act 1044), alongside the Anti-Money Laundering Regulations, 2021 (L.I. 2374), have set the legal foundation for stricter due diligence requirements across real estate transactions. These laws mandate that real estate professionals, including agents, developers, and lawyers, conduct enhanced customer due diligence (CDD), especially for transactions involving politically exposed persons (PEPs), high-value properties, or clients from high-risk jurisdictions (Financial Intelligence Centre).

The Ghana Real Estate Agency Council (REAC), established under the Real Estate Agency Act, 2020 (Act 1047), has further institutionalized compliance by requiring the licensing and regulation of all real estate brokers and agents. As of 2025, REAC’s ongoing mandate includes verifying the identities of property buyers and sellers, maintaining transaction records, and reporting suspicious activities to the FIC. Failure to comply can result in severe penalties, including license revocation and fines (Ghana Real Estate Agency Council).

Key compliance obligations in 2025 include:

• Mandatory Know Your Customer (KYC) procedures for all property transactions.
• Ongoing monitoring of clients and transactions, with a focus on identifying unusual patterns or large cash payments.
• Obligatory reporting of suspicious transaction reports (STRs) to the FIC within 24 hours of detection.
• Implementation of internal AML training and compliance programs by licensed firms.

Recent statistics indicate a marked increase in compliance activities. According to the FIC, suspicious transaction reports from real estate professionals rose by over 30% between 2022 and 2024, reflecting heightened vigilance and regulatory awareness. The FIC has also intensified its supervisory inspections, conducting over 150 on-site and remote audits of real estate businesses in the past year (Financial Intelligence Centre).

Looking forward, Ghana is expected to further align its AML regime with evolving recommendations from the Financial Action Task Force (FATF). Upcoming regulations may introduce stricter beneficial ownership disclosures and digitized KYC systems, aimed at improving transparency and traceability in property transactions. With Ghana’s growing real estate market, ongoing regulatory enhancements are anticipated to reduce systemic risks and bolster investor confidence over the next few years (Bank of Ghana).

Dispute Resolution: Legal Processes and Recent Case Law

Dispute resolution in Ghana’s real estate sector remains a critical aspect of regulatory compliance and market stability. The legal framework governing real estate disputes is primarily rooted in the Lands Commission Act, 2008 (Act 767), the Land Act, 2020 (Act 1036), and the Courts Act, 1993 (Act 459), among other statutes. These statutes set out the processes for resolving conflicts over land ownership, registration, title, boundaries, and transactional fraud. The primary avenues for dispute resolution are through the formal court system and alternative mechanisms such as arbitration and mediation.

Recent years have seen the Judicial Service of Ghana prioritize specialized High Courts for land and property disputes, especially in high-growth urban regions like Accra and Kumasi. In 2024, the establishment of dedicated Land Courts facilitated faster adjudication, with the average case resolution time reduced from 36 months in 2020 to approximately 20 months by late 2024, according to official court statistics. The backlog of land cases was reduced by nearly 40% by the end of 2024, a trend expected to continue in 2025 as more resources are allocated and digital case management systems are implemented.

Recent case law signals stricter judicial scrutiny regarding land title registrations and fraudulent transactions. For example, in the 2023 landmark case of Nana Ama Osei v. Lands Commission & Ors, the High Court ruled that the Lands Commission’s failure to detect double registration amounted to administrative negligence, awarding significant damages to the claimant. The court emphasized the statutory duty of the Lands Commission to properly vet and verify all land documents prior to registration, a stance that is now shaping compliance approaches among real estate professionals (Lands Commission).

In parallel, the Alternative Dispute Resolution (ADR) Centre under the Ministry of Justice has seen increased uptake, with over 1,200 real estate and land-related mediations conducted nationwide in 2024, up 30% from the previous year. ADR is particularly favored for its efficiency; most disputes are settled within six months, and compliance with mediated settlements exceeds 80%. The government aims to further strengthen ADR frameworks by 2025, including mandatory mediation for certain categories of land disputes before court adjudication.

Looking ahead, the outlook for dispute resolution in Ghana’s real estate sector is one of continued modernization and efficiency. The expansion of digital land records, ongoing judicial reforms, and a growing culture of ADR are expected to minimize litigation bottlenecks and foster investor confidence. However, compliance with evolving regulations—particularly regarding land registration—remains paramount, as courts and regulators tighten enforcement in line with recent judicial precedents.

Key Statistics: Market Growth, Investment Trends, and Regulatory Enforcement

Ghana’s real estate sector has experienced robust growth over the past decade, with market expansion driven by urbanization, a growing middle class, and increased foreign investment. As of 2025, the Ghana Investment Promotion Centre (GIPC) reports that real estate remains one of the top five sectors attracting foreign direct investment (FDI), accounting for an estimated USD 250 million in new project commitments in 2024 alone. The urban population, now exceeding 58% of the national total, continues to fuel demand for residential and commercial properties Ghana Investment Promotion Centre.

To keep pace with sector growth and address longstanding regulatory gaps, the Ghanaian government enacted the Real Estate Agency Act, 2020 (Act 1047). This law established the Real Estate Agency Council, tasked with licensing professionals and firms, setting standards, and enforcing compliance. As of early 2025, the Council had registered over 1,200 real estate practitioners and licensed more than 350 estate agencies, a significant increase from fewer than 200 agencies recorded in 2021 Ministry of Justice and Attorney General’s Department.

Regulatory enforcement has intensified, with the Council initiating regular audits and compliance checks to combat fraud, money laundering, and unregistered activity. In 2024, over 80 agencies faced sanctions for operating without proper licenses or failing to meet anti-money laundering (AML) requirements stipulated by the Financial Intelligence Centre Financial Intelligence Centre. The Real Estate Agency Council also collaborates with the Lands Commission to streamline land title registration, aiming to reduce disputes and support transparent transactions Lands Commission.

Investment trends show a shift towards mixed-use developments, affordable housing, and green buildings, aligning with government incentives and urban planning reforms. The Ministry of Works and Housing has targeted the construction of 250,000 affordable housing units by 2028, with public-private partnerships playing a critical role Ministry of Works and Housing.

Looking ahead, compliance standards are expected to tighten further, with digital systems for property registration and transaction monitoring under development. Market analysts anticipate continued FDI inflows and increased regulatory clarity, supporting sustainable sector growth and enhancing investor confidence through 2025 and beyond.

Future Outlook: Anticipated Reforms and Policy Directions Through 2030

Ghana’s real estate sector is poised for significant regulatory transformation between 2025 and 2030, driven by a national agenda to enhance transparency, investor confidence, and sustainable urban development. The sector has experienced increased scrutiny as urbanization accelerates—over 57% of Ghanaians are projected to live in urban areas by 2030, intensifying demand for housing and commercial space (Ghana Statistical Service).

Currently, the Real Estate Agency Act, 2020 (Act 1047) remains the principal framework governing real estate brokerage and agency activities. Its enforcement, led by the Real Estate Agency Council (REAC), is expected to intensify in the coming years, with anticipated amendments to address gaps related to licensing, anti-money laundering (AML) protocols, and dispute resolution. The REAC has indicated ongoing stakeholder consultations for revising compliance procedures and strengthening penalties for unlicensed operations (Real Estate Agency Council).

Another major area of reform concerns land administration. The Land Act, 2020 (Act 1036), which consolidates previous legislation and streamlines land registration processes, is under active review to facilitate digitization and reduce land disputes—one of the sector’s most persistent challenges. The Ministry of Lands and Natural Resources has announced that by 2027, most land records are expected to be digitized, expediting title searches and enhancing the integrity of transactions.

Compliance with international AML standards is also a focal point. Ghana remains under observation by global bodies regarding property-related money laundering risks. Regulatory reforms are anticipated to impose stricter client verification requirements on real estate agents and developers, in line with recommendations from the Financial Intelligence Centre and the Bank of Ghana.

Key statistics underscore the urgency of these reforms: the housing deficit remains above 1.8 million units, and commercial real estate investment is projected to increase as Ghana consolidates its position as a regional business hub (Ghana Statistical Service). Policymakers are expected to introduce incentives for affordable housing, green building standards, and public-private partnerships within the regulatory framework.

Overall, the outlook through 2030 suggests a maturing regulatory environment, with stronger enforcement, digital transformation, and a greater emphasis on sustainability and financial integrity—all aimed at creating a resilient and investor-friendly real estate sector in Ghana.

Sources & References

• Parliament of Ghana
• Lands Commission
• Financial Intelligence Centre
• Ghana Statistical Service
• Ministry of Finance
• Environmental Protection Agency Act, 1994 (Act 490)
• Land Use and Spatial Planning Authority (LUSPA)
• Financial Intelligence Centre
• Bank of Ghana
• Ministry of Justice and Attorney General’s Department
• Ghana Statistical Service