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Dakar's rental market shows strong fundamentals with average apartment rents of 1,974,972 CFA per month. The Senegalese capital offers rental yields of 6-10% in prime areas, making it an attractive destination for property investors seeking exposure to West Africa's growing economy.
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As of September 2025, Dakar's rental market displays strong performance with average apartment rents around 1,974,972 CFA monthly and rental yields reaching 6-10% in premium districts.
The market shows clear segmentation between luxury areas like Almadies where villas can command 2-5 million CFA monthly, and affordable neighborhoods where studios start at 452,789 CFA.
| Property Type | Average Monthly Rent (CFA) | Prime Location Examples |
|---|---|---|
| Studio Apartments | 452,789 - 777,376 | Suburbs, emerging areas |
| 1-Bedroom Apartments | 521,667 - 700,000 | Plateau, city center |
| 2-Bedroom Apartments | 900,000 - 1,600,000 | Mermoz, Fann, Sacré-Coeur |
| 3-Bedroom Apartments | 1,500,000 - 2,000,000 | Almadies, Point E |
| Houses | 1,200,000 - 2,500,000 | Mid-range neighborhoods |
| Luxury Villas | 2,000,000 - 5,000,000+ | Ngor, Almadies beachfront |
| Commercial Spaces | 1,500 - 3,000 per sqm | Business districts |
What's the current average rent in Dakar by property type?
Dakar's rental market shows clear differentiation across property types, with apartments averaging 1,974,972 CFA per month as of September 2025.
Studio and one-bedroom apartments represent the most accessible entry point, with studios ranging from 452,789 to 777,376 CFA monthly. One-bedroom units in central locations like Plateau typically cost around 521,667 CFA per month, making them popular among young professionals and expatriate workers.
Two and three-bedroom apartments command higher rents, reflecting their appeal to families and established professionals. Two-bedroom units average between 900,000 and 1,600,000 CFA monthly, while three-bedroom apartments reach 1,064,000 CFA on average, with premium locations pushing rates to 2,000,000 CFA or more.
Houses present a middle-tier option with median pricing at 593,333 CFA per square meter for rental calculations. The actual monthly rent varies significantly based on size and neighborhood, typically ranging from 1,200,000 to 2,500,000 CFA for standard family homes.
Luxury villas represent the premium segment, particularly in exclusive districts like Almadies and Ngor, where monthly rents exceed 2,000,000 CFA and can reach 5,000,000 CFA or more for beachfront properties with full amenities.
How do average rents vary by neighborhood in Dakar?
Dakar's rental market displays significant geographic variation, with premium coastal districts commanding substantially higher rates than inland areas.
The luxury tier consists of Almadies, Ngor, and Point E, where property values reach 3.5 to 5.5 million CFA per square meter for purchases, translating to the highest rental rates in the city. Almadies particularly stands out as the most expensive area, attracting affluent expatriates and diplomatic staff who prioritize proximity to beaches and international amenities.
Mid-range neighborhoods including Mermoz, Fann, and Sacré-Coeur offer balanced value propositions with moderate rental rates. These areas provide good investment potential, especially for two-bedroom units, as they attract both local professionals and international residents seeking quality accommodations without premium pricing.
Affordable districts like Pikine and outer suburban areas feature significantly lower costs, with apartment purchase prices ranging from 500,000 to 1,000,000 CFA per square meter. These neighborhoods offer rental opportunities for budget-conscious tenants and investors seeking higher yields through volume rather than premium pricing.
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What's the rent breakdown by property size in Dakar?
Property size directly correlates with rental rates in Dakar, following predictable patterns that reflect local housing demand and economic capacity.
Small units including studios and one-bedroom apartments range from 452,789 to 777,376 CFA monthly. These compact spaces serve young professionals, students, and single expatriates who prioritize location over space, particularly in business districts and near transportation hubs.
Medium-sized properties encompassing two to three-bedroom apartments command 676,122 to 1,380,000 CFA monthly, depending on specific location and amenities. Three-bedroom units specifically average around 1,064,000 CFA, making them attractive to families and expatriate couples requiring home office space.
Large family homes and villas see dramatic price increases with size expansion. Properties exceeding 150 square meters, particularly in coastal areas like Almadies, can reach several million CFA monthly. The premium for additional space becomes more pronounced in exclusive neighborhoods where land scarcity drives up per-square-meter costs.
The average rent per square meter for standard apartments sits at approximately 1,108,167 CFA, providing a useful benchmark for evaluating specific properties against market rates.
What charges and fees do landlords typically include in Dakar rentals?
Dakar rental agreements typically include specific utility and service charges, with clear divisions of responsibility between landlords and tenants.
Water costs range from 5,000 to 20,000 CFA monthly, billed according to actual consumption and usually paid directly by tenants. Electricity expenses vary more dramatically, from 10,000 to 50,000 CFA monthly, with higher costs for properties using extensive air conditioning during Dakar's hot season.
Security and caretaking services cost 5,000 to 20,000 CFA monthly and are nearly always included for apartment buildings and gated communities. This charge covers on-site security personnel, building maintenance staff, and common area upkeep, providing essential services that tenants expect in quality accommodations.
Internet connectivity adds 10,000 to 50,000 CFA monthly depending on speed and provider. Many landlords include basic internet in rental packages, particularly for expatriate-targeted properties, though premium connections may require separate arrangements.
Additional services including waste collection, garden maintenance, and generator backup are common in coastal and expatriate areas, adding extra costs but providing convenience and reliability that justify higher rents in premium locations.
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What taxes and additional costs should property owners expect in Dakar?
Property ownership in Dakar involves several tax obligations and costs that significantly impact net investment returns.
Rental income tax applies at a flat 20% rate on net income after allowable deductions for repairs, property tax, insurance, and mortgage interest. This straightforward tax structure provides clarity for investors calculating expected returns, though proper documentation of expenses becomes crucial for tax optimization.
Property tax equals 5% of the property's assessed rental value for developed land, with exemptions available for lower-value properties. This annual obligation varies based on property type and location, with premium areas facing higher assessments that reflect market values.
Purchase-related costs total 16-20% of property value, including land registry fees, stamp duty, notary charges, and legal documentation. These upfront costs significantly impact initial investment calculations and should be factored into acquisition budgets from the planning stage.
Value-added tax at 18% applies to rental income in certain circumstances, though unfurnished residential rentals typically receive VAT exemptions. Capital gains tax imposes a 30% flat rate on property sale profits, making long-term holding strategies more attractive for tax efficiency.
How does mortgage financing impact rental returns compared to cash purchases?
Cash transactions dominate Dakar's property market, particularly among foreign buyers and investors seeking straightforward ownership structures.
Cash purchases eliminate ongoing financing costs and provide immediate full ownership benefits. Property buyers avoid interest payments, loan processing fees, and potential registration delays associated with mortgage arrangements. This approach maximizes net rental yields since no interest payments reduce monthly cash flow from rental income.
Mortgage financing remains less common but offers potential tax advantages through interest deductibility against rental income. However, interest payments and loan-related fees reduce effective returns, while financing arrangements may complicate and delay property registration processes in Senegal's legal system.
The net yield difference favors cash purchases in most scenarios, as mortgage interest rates and associated costs typically exceed the potential tax benefits. Foreign investors particularly prefer cash transactions to avoid currency risk and local banking relationship requirements that can complicate financing arrangements.
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What are the rental differences between short-term and long-term rentals in Dakar?
Short-term and long-term rental strategies offer distinct advantages and challenges in Dakar's diverse rental market.
Short-term rentals generate 40-60% higher gross income than traditional long-term arrangements in prime business and tourist districts. Average daily rates for vacation rentals reach approximately $52 per night (about 31,000 CFA), with top-performing properties in emerging areas earning median monthly income of $625 or more through platforms like Airbnb.
Long-term rentals provide steadier cash flow with less seasonal variation and lower management requirements. Traditional apartment and house rentals to local residents and long-term expatriates offer predictable income streams that appeal to investors seeking passive income without intensive property management.
Profitability analysis shows short-term rentals achieving higher gross yields but requiring active management, seasonal marketing, and higher operational costs including utilities, cleaning, and maintenance. Long-term rentals sacrifice potential income for stability and reduced management burden, making them suitable for distant or passive investors.
Location significantly influences the viability of each strategy, with tourist and business districts favoring short-term approaches while residential neighborhoods and suburban areas better suit long-term rental models targeting local families and working professionals.
Can you provide example rental prices for popular Dakar areas?
| Property Type | Area | Monthly Rent (CFA) | Market Characteristics |
|---|---|---|---|
| 1-bedroom Apartment | Plateau | 521,667 - 700,000 | City center, high business demand |
| 2-bedroom Apartment | Mermoz/Fann | 900,000 - 1,600,000 | Popular investment zone |
| 3-bedroom Apartment | Almadies | 1,500,000 - 2,000,000 | Luxury expatriate area |
| Luxury Villa | Ngor/Almadies | 2,000,000 - 5,000,000+ | Beachfront, highly exclusive |
| Studio | Suburban areas | 452,789 - 600,000 | Affordable, lower vacancy rates |
| Family House | Sacré-Coeur | 1,200,000 - 2,000,000 | Residential, family-oriented |
| Modern Apartment | Point E | 1,100,000 - 1,800,000 | Business district proximity |
What are the typical renter profiles in Dakar?
Dakar's rental market serves three distinct tenant categories, each with specific preferences and payment capabilities.
Local renters include young professionals, families, and students pursuing upward mobility within the city. This segment shows increasing demand for one and two-bedroom apartments in business districts and suburban areas near schools and transportation links. Local tenants typically prefer longer lease terms and prioritize affordability and accessibility over luxury amenities.
Foreign expatriates and international workers represent a crucial high-value segment including NGO staff, corporate employees, embassy personnel, and development organization workers. This group demands secure, modern apartments with reliable utilities, parking, internet connectivity, and security services, primarily in areas like Almadies, Plateau, Fann, and Ngor.
Short-term guests encompass tourists, business travelers, and digital nomads who drive demand for furnished accommodations with flexible terms. This segment targets properties in city center and coastal areas, willing to pay premium rates for convenience, location, and amenities that support temporary stays.
The expatriate segment generally offers the highest rental rates and most stable payment history, making properties attractive to this demographic particularly valuable for investors seeking reliable long-term tenants with strong financial backing.
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What are the vacancy rates across different areas and property types in Dakar?
Vacancy rates in Dakar vary significantly by location and property type, reflecting market dynamics and tenant preferences across different segments.
Overall apartment vacancy rates average 15-22% citywide, with lower rates in central and premium districts where demand consistently exceeds supply. Luxury properties experience higher vacancy rates due to limited target demographics and higher rental costs that reduce the pool of qualified tenants.
Short-term rental properties face different challenges, with median occupancy around 26% for Airbnb listings in emerging areas. Low-performing short-term rental properties achieve only 12% occupancy, highlighting the importance of proper pricing, marketing, and property management for success in this segment.
Suburban and budget properties maintain lower vacancy rates despite offering lower rental rates. These areas benefit from consistent demand from local residents and workers who prioritize affordability over premium locations, creating more stable occupancy patterns throughout economic cycles.
Premium coastal areas like Almadies experience seasonal vacancy fluctuations, with higher occupancy during peak business and tourist seasons but potential gaps during slower periods when expatriate rotations and business travel decline.
What are current rental yields and how have they changed over time?
Dakar's rental market delivers competitive yields that have remained resilient despite broader economic challenges affecting West Africa.
Current rental yields range from 6-10% in prime areas, comparing favorably with other major African cities. These yields have maintained stability due to consistent rent growth and strong underlying demand from both local and international tenant populations.
Year-over-year growth shows rents and yields increasing 3-7% annually as of 2025, reflecting Dakar's position as a regional business and diplomatic hub. This growth trajectory demonstrates the market's fundamental strength and appeal to investors seeking emerging market exposure with reasonable risk profiles.
Five-year performance data indicates apartment values and rents have increased 23% overall, with three-bedroom apartments showing particularly strong growth of 25-30% over the period. This sustained appreciation reflects Dakar's economic development and increasing integration into regional and global business networks.
Comparative analysis shows Dakar yields of 6-10% compete well against Lagos (8-12%), Nairobi (7-10%), and Accra (6-8%), positioning Senegal's capital as an attractive option for investors seeking West African real estate exposure with reasonable risk-adjusted returns.
What are the smart property investment choices and market forecasts for Dakar?
Current market conditions favor specific property types and locations that align with Dakar's development trajectory and demographic trends.
Optimal current investments include technology-enabled one and two-bedroom apartments in rising areas like Fann, Sacré-Coeur, and Diamniadio. These locations benefit from infrastructure development including BRT systems and road improvements while attracting young professionals and expatriate workers seeking modern accommodations with connectivity features.
Smart eco-friendly homes and family-sized properties in secure gated communities represent another strong opportunity. Environmental consciousness and security concerns drive demand for properties offering sustainable features, reliable utilities, and controlled access that appeals to both local affluent families and international residents.
Short-term forecasts for the next 1-5 years anticipate annual price growth of 3-7% with rents rising alongside continued urbanization. Vacancy rates should decline as new infrastructure projects including transportation improvements and business district development increase demand for quality rental accommodations.
Long-term outlook over 10 years positions Dakar to maintain its status as a leading West African investment destination. The city's coastal location, demographic growth, and infrastructure development should sustain yields relative to other major African capitals, with particular advantages in the premium market segment serving regional business and diplomatic communities.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Dakar's rental market presents compelling opportunities with yields of 6-10% in prime areas and consistent growth trends.
Smart investors should focus on modern apartments in developing areas and eco-friendly properties in established neighborhoods, while considering both short-term and long-term rental strategies based on their management capacity and risk tolerance.
Sources
- The African Investor - Dakar Price Forecasts
- Rentberry - Dakar Senegal Apartments
- The African Investor - Dakar Property
- Loger Dakar - Guide to Rental Charges
- Global Property Guide - Senegal Taxes and Costs
- The African Investor - Buy Land Senegal
- Likibu - Dakar Accommodation
- Hotels Combined - Dakar Vacation Rentals