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InterviewsNovember 16, 2023

Ghana Real Estate Industry: Charles Quao Unveils Upcoming Developments and Future Projects at Quao Realty

Charles Quao, Founder and CEO of Quao Realty
Charles Quao, Founder and CEO of Quao Realty
Written by Sandra Francisco
Published: November 16, 2023

Interview with Charles Quao, Founder and CEO of Quao Realty

Could you provide an overview of Quao Realty?

We launched our company in 2017. Primarily, I have been engaged in landscaping for about a decade, collaborating with significant real estate developers and construction firms in Ghana. Our work largely revolved around landscaping projects for five-star hotels. Through these collaborations, we identified several challenges faced by developers, issues we believed we could address. One common obstacle among these companies revolved around the struggle to meet project deadlines. Resolving these issues became a focal point for us, understanding that resolving problems for customers often encourages their investment. Our standout achievement over the last six years has been our consistent delivery of projects on time – a pervasive issue in the industry. Numerous developers grapple with prolonged project delays, extending up to five or seven years, causing investors to anticipate returns within specific timeframes. Once funds are tied up with developers, the inability to deliver becomes a significant concern. Our capability to consistently deliver projects on time has become our greatest asset and unique selling point. Quao Realty was established in 2017, initiated by my wife and myself, along with a small team. In our six-year journey, we have successfully delivered over 100 properties to our clients and sold more than 200 properties in locations like Airport Residential, Cantonments and East Legon. Our trajectory is set to achieve the delivery of over 500 units within the next two to three years. Our primary focus revolves around understanding the market dynamics to precisely meet our clients' needs – a foundational principle at Quao Realty.

Could you provide specific examples that demonstrate your understanding of client needs and your approach to delivering accordingly?

Understanding the specific requirements of each market is crucial. A decade ago, we encountered individuals in prime areas of Accra seeking rental properties. These properties had massive square footage, with one-bedroom apartments exceeding 100 square meters. In construction, the cost largely hinges on square meters. Building a single square meter incurs substantial expenses, influencing the overall property cost. To address this, we decided to deviate from the traditional approach. Rather than constructing 100 square meter one-bedroom units, which often included unnecessary space, we optimized our designs, offering one-bedroom packages at 50 to 60 square meters. This optimization significantly reduced costs. Instead of selling to investors at half a million dollars with a potential rental income of less than $3,000, we lowered the selling price to a quarter of the original amount, enabling investors to price their investment more effectively. This strategy allowed us to sell off-plan from the project's inception, understanding and meeting customer demands. For instance, I spoke with a developer who had a project running for two to three years with only five units sold. In contrast, we comprehended the market's desires and sold our units based on these insights, ensuring customers received their desired products promptly and of superior quality, aligning with their investment goals. Moving forward, the real estate landscape is evolving, and consumers are becoming more discerning. Everyone claims to offer quality and luxury, but upon studying the market, we realized that what is often labeled as quality fails to meet actual standards. Therefore, we ensure that our buyers receive more value than what they pay for, fostering our continual growth. Notably, a significant portion – around 70 to 75% – of our sales are referrals. By consistently meeting customer needs, our business continues to thrive.

Could you provide a range of prices for the apartments based on square meters, considering the various sizes available?

Our prices typically start from around $85,000 to $95,000 for one-bedroom units, with variations in size. The range extends to approximately $145,000 to $160,000 for larger one-bedroom apartments. For two-bedroom units, the prices are between $250,000 to $300,000. Additionally, we have ensured that our investors can attain at least a minimum of 10 to 12% returns on their investment. I recall a client who invested a million dollars and received a consistent annual return of $100,000, fostering their loyalty and repeat business. It is crucial to align prices within a specific range, especially for individuals investing in real estate. Once they achieve the anticipated returns, be it through sales or rentals, it establishes a unique selling point for our properties.

Could you provide information about the projects that are currently being developed?

We are actively engaged in multiple projects, some already sold while others are in progress. Presently, we are handling three new developments. One Elm, situated in the Airport Residential area, is already completely sold out. Another, Britton’s Residence in Cantonments, is approximately 50% completed, and launched around two months ago. Additionally, in December, we are set to launch another project, Rose Manor, a 16-storey structure in the Airport Residential area. These are the current developments we are focusing on.

Could you provide more details about Britton’s Residence and Rose Manor? What are their unique features?

Britton’s Residence, located in Cantonments, is a remarkable basement development featuring around 50 parking spaces and approximately 45 exclusive homes. We have tailored this project specifically for those seeking a true home atmosphere. These residences do not include studios, catering to individuals desiring a more permanent living space, eliminating any Airbnb or transient occupancy. The range of sizes varies, starting from one-bedroom plus spaces at 65 square meters, while the two-bedroom units span approximately 100 to 110 square meters, designed for more family-oriented living. The larger two-bedroom units offer ample space, around 130 to 150 square meters. Additionally, we have incorporated a penthouse with a private pool on the top floor, and the entire development will embrace complete home automation, providing a seamless smart home experience.

Rose Manor, a forthcoming 16-storey building in the Airport Residential area, boasts a basement with 110 to 120 parking spaces. This development will feature two exclusive penthouses – one on the 13th floor and another on the 16th floor – each equipped with a private pool. The amenities in Rose Manor are extensive, including a café, residential lounge, restaurant, game room, infinity pool, gym with a view of the pool, and a rooftop bar, promising an exciting and comprehensive living experience. The launch for Rose Manor is scheduled for the first week of December, promising an exceptional offering.

Could you provide a brief overview of the sizes and prices for potential buyers?

The prices will be disclosed in December, but we are estimating around $90,000 for a studio, approximately $140,000 to $150,000 for one-bedroom units, and $250,000 for two-bedroom units. The sizes vary, with studios typically around 40 square meters, one-bedrooms at 50 square meters, and two-bedrooms at approximately 100 square meters and so forth.

Off plan purchases are in the pipeline for delivery. It is expected to be completed in about two and a half years from December, possibly by early 2026. We generally allocate ample time for our projects, but consistently aim to deliver earlier, emphasizing the approach of under-promising and over-delivering.

Do you wish to expand internationally?

We are indeed exploring opportunities in various African countries, with Nigeria and Rwanda being among our key interests. We have made several visits to these countries and are currently aiming to launch a project within the timeframe of 2024 to 2025. Our plan is to replicate the successful model we have established in Accra within the Nigerian market, as we believe there is a substantial gap to fill in Nigeria's real estate sector. While we are aware that prime areas in Nigeria have expensive land prices, we are committed to finding innovative solutions to cater to people's needs and satisfaction. For our Nigerian project, we are focusing on Lagos, particularly Banana Island.

Are you involved in any CSR activities?

Currently, we are engaged in several projects, notably in the construction of schools and the improvement of facilities in hospitals. We have ongoing projects, including one that commenced last December. Additionally, we are exploring collaborations with the Ghana police to refurbish their spaces, considering their continuous vigilance in the prime areas where our developments are located. Supporting the community is crucial, and these projects aim to contribute in that regard. In the past, we have facilitated scholarships for underprivileged students, particularly through the Ghana Student Education Fund, focusing on aiding bright students who lack financial support. We have initiated several efforts and plan to do more in the upcoming year, with the hope of expanding our impact in these areas.

Are there any awards or certifications you would like to highlight?

We have received a few notable awards in Ghana. We secured the best real estate company award around two years ago, and we were also honored with the 40 under 40 award, specifically in the construction and real estate sector. These two accolades represent our involvement and recognition.

Regarding technology and infrastructure, are there specific features or materials you incorporate into your developments to align with environmental considerations?

Absolutely. In the case of Britton’s Residence, we have embraced a fully integrated smart home concept. This means that residents can control various aspects of their living environment through their smartphones. For instance, you can manage your air conditioning and lighting from your phone, adjusting brightness levels and more. We offer a basic package to our clients and then present additional options for those who desire more advanced features. It is like providing a solid foundation and allowing residents to choose additional enhancements for an extra cost.

Furthermore, we have implemented security measures to enhance convenience and safety. Rather than traditional systems where you need to access the basement for parking, we have introduced a card-based system. This card allows you to access specific floors or areas, enhancing security. For instance, if you live on the seventh floor, your card grants you access to the seventh floor but not to the eighth or second floors. These are just a few of the technological enhancements we have incorporated into our developments to create a more efficient and secure living environment.

Looking ahead over the next three years, what is your vision for the company's growth?

As Quao Realty expands, my primary vision is to create substantial job opportunities in Africa. Additionally, I aim to assist investors in earning returns on their investments. My ultimate goal is to witness prosperity across Africa, enabling people to thrive and succeed in a continent with numerous challenges. I envision the rise of significant corporations originating from Africa, altering the prevailing narrative that only major companies emerge from places like England or the United States. Building billion-dollar companies within Africa is a key aspiration, as these enterprises can contribute significantly to addressing the myriad issues faced by the continent. Africa encounters numerous challenges, and this is the driving force behind our continued efforts. Our ultimate aim is to bring about significant change.

What inspires you and what are your guiding philosophies?

The primary force that propels me is my faith as a Christian and my spiritual connection. I find immense inspiration in reading the Bible and through prayer. There is an inner conviction that continually reinforces the belief that I can accomplish significant feats, like building a global business. The inception of Quao Realty might have seemed implausible; desiring a project worth $25 million without even having 10% of that, but that drive persisted. "We can do it," that is the underlying belief. The Scriptures, the Bible, are profound sources of inspiration for me. Engaging with them helps me stay resilient, avoiding thoughts that something is impossible. I consistently believe that achieving is possible, grounded in my faith. That is what drives me. Additionally, observing the prevalent problems in Africa motivates me. I firmly believe that we, as Africans, have the capability to solve our own issues. Therefore, I am committed to establishing a billion-dollar company that can generate employment opportunities and contribute to societal betterment.

 

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