Choosing (a) Speculative Builders and (d) Commercial Property Investors, from my lending portfolio at Ecobank Ghana, where property booms (e.g., Accra developments) offer high yields but risks like 2023 market slowdowns.

 (a) Speculative Builders:

• Features: Finance construction without pre-sales, repaid from sales. Phased drawdowns, high margins (22% base + 8% risk). Security: Mortgage over land/project.
• Risk Dynamics: Market risk (unsold units if demand falls, e.g., post-COVID oversupply in Ghana). Completion risk (delays from materials inflation). Liquidity risk—builder defaults if sales slow. Mitigate via valuations, progress monitoring per BoG guidelines. Example: High NPLs in 2019 cleanup from spec projects.

(d) Commercial Property Investors:

• Features: Long-term loans for income-generating properties (e.g., offices). Repayment from rentals, lower margins (22% + 4%). Security: Charge over property, rental assignments.
• Risk Dynamics: Vacancy risk (tenant defaults, e.g., economic downturns). Interest rate risk (floating rates strain cash flow). Valuation risk (property devaluation post-DDEP). Forex if foreign tenants. Mitigate with DSCR covenants (>1.5), insurance. Lucrative for stable income, but monitor per BoG’s 2020 Stress Testing Directive.

These highlight need for diversified portfolios to manage concentration risks under Act 930.