Authored by the expert who managed and guided the team behind the Senegal Property Pack
Yes, the analysis of Dakar's property market is included in our pack
Dakar's rental market offers attractive yields ranging from 6% to 10% gross, with prime neighborhoods like Almadies delivering the highest returns.
As of September 2025, rental yields in Dakar vary significantly by location and property type, with luxury apartments in coastal areas outperforming suburban properties. The city's growing expat population and strong tourism sector continue to drive rental demand, particularly for short-term accommodations and premium housing.
If you want to go deeper, you can check our pack of documents related to the real estate market in Senegal, based on reliable facts and data, not opinions or rumors.
Dakar's rental yields typically range from 6-10% gross for apartments, with prime areas like Almadies achieving 8-10% while suburban areas average 4-6%.
Short-term rentals consistently outperform long-term rentals, delivering 10-12% gross yields but requiring higher management costs and operational involvement.
| Property Type | Location | Gross Rental Yield | Net Rental Yield | Average Monthly Rent |
|---|---|---|---|---|
| Luxury Apartments | Almadies | 8-10% | 6-8% | 500,000-700,000 CFA |
| Standard Apartments | Plateau/Mermoz | 6-8% | 5-6% | 400,000-600,000 CFA |
| Houses/Villas | Ngor/Point E | 5-7% | 4-5% | 600,000-900,000 CFA |
| Affordable Housing | Pikine/Yoff | 4-6% | 3-4% | 200,000-350,000 CFA |
| Commercial Spaces | Downtown | 7-9% | 5-7% | 800,000-1,500,000 CFA |
| Short-term Rentals | Coastal Areas | 10-12% | 7-9% | Variable (31% occupancy) |
| Beachfront Properties | Almadies/Ngor | Up to 10.5% | 7-8% | 700,000-1,000,000 CFA |
How much do properties typically cost in Dakar today, including purchase price and fees?
Property prices in Dakar vary significantly depending on location and type, with standard apartments averaging 1,108,167 CFA per square meter as of September 2025.
Luxury apartments in premium areas like Almadies command prices between 3.5 to 5.5 million CFA per square meter, making it the most expensive district in the city. For comparison, houses have a median price of 593,333 CFA per square meter and an average of 926,362 CFA per square meter.
Affordable housing options in suburban areas like Pikine and Yoff range from 500,000 to 1,000,000 CFA per square meter, while commercial spaces typically cost between 1.2 to 2.5 million CFA per square meter. A typical 60 square meter apartment in Dakar costs between 75 to 80 million CFA, equivalent to approximately $123,000 to $132,000.
Additional costs include a transfer tax of approximately 2% of the sale price, annual property tax equal to 5% of potential rental value, notary fees around 1.5%, and registration fees of about 1%. Mortgage terms typically span 15 to 20 years with interest rates ranging from 7% to 10%, requiring a down payment of 20% to 30%.
It's something we develop in our Senegal property pack.
What are the main property types available and how do their prices compare?
| Property Type | Price Range (CFA/m²) | Typical Areas | Target Market |
|---|---|---|---|
| Standard Apartments | 1,100,000 - 1,500,000 | Plateau, Mermoz, Sacré-Coeur | Young professionals, middle class |
| Luxury Apartments | 3,500,000 - 5,500,000 | Almadies, Ngor, Point E | Expats, diplomats, executives |
| Houses/Villas | 600,000 - 1,200,000 | Suburbs, Yoff, Pikine | Families, long-term residents |
| Commercial Spaces | 1,200,000 - 2,500,000 | Plateau, Downtown | Businesses, corporate tenants |
| Affordable Housing | 500,000 - 1,000,000 | Pikine, Yoff, Outskirts | Students, local workers |
Which neighborhoods offer the best balance between price and rental demand?
Mermoz and Sacré-Coeur neighborhoods provide the optimal balance between affordable purchase prices and strong rental demand in Dakar's property market.
These areas attract young professionals and middle-class families, offering property prices between 1 to 2 million CFA per square meter while maintaining consistent rental demand. Mermoz particularly benefits from its central location and good transportation links, generating gross rental yields of 6% to 8%.
Almadies commands the highest prices at 3.5 to 5.5 million CFA per square meter but delivers strong yields of 6% to 8% due to premium rental rates. Ngor offers a middle ground with prices between 2 to 3 million CFA per square meter and yields of 7% to 9%, popular among expatriate tenants.
Point E presents an emerging opportunity with prices ranging from 900,000 to 1.3 million CFA per square meter, though yields are currently lower at 4% to 6%. Plateau remains a solid choice for mixed-use investments with prices between 1.1 to 1.5 million CFA per square meter and steady yields of 5% to 7%.
How much rent can you realistically expect for each property type in different areas?
Rental income in Dakar varies dramatically by location and property type, with luxury apartments in Almadies commanding 500,000 to 700,000 CFA per month.
One-bedroom apartments in the city center typically rent for approximately 521,667 CFA per month, while three-bedroom units in central areas average 1,064,000 CFA monthly. The overall average rent across all property types reaches 1,974,972 CFA per month as of September 2025.
Budget accommodations and student housing outside the center range from 204,000 to 350,000 CFA per month, primarily located in Pikine, Yoff, and suburban areas. Standard apartments in neighborhoods like Mermoz and Sacré-Coeur typically generate monthly rents between 400,000 to 600,000 CFA.
Commercial spaces in prime locations like Plateau and downtown areas command monthly rents from 800,000 to 1,500,000 CFA, depending on size and specific location. Houses and villas in residential areas like Ngor and Point E typically rent for 600,000 to 900,000 CFA per month.
Don't lose money on your property in Dakar
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the profiles of the main renters in Dakar?
Dakar's rental market serves five distinct tenant segments, each with specific housing preferences and budget ranges.
- Local middle-class residents and families - Seek houses and affordable apartments, primarily in suburban areas like Pikine, Yoff, and residential neighborhoods
- Expatriate professionals - Diplomats, NGO workers, and multinational company employees who prefer premium locations like Almadies, Point E, Ngor, and Plateau
- University students - Create strong demand near educational institutions, particularly in Point E, Plateau, and Sacré-Coeur areas
- Short-term visitors - Tourists and digital nomads driving the Airbnb market, especially in coastal areas and diplomatic districts
- Corporate tenants - Companies providing housing for business travelers and expatriate employees, concentrated in Plateau and Almadies
What are the average vacancy rates for each property type and area?
Prime neighborhoods in Dakar maintain low vacancy rates of approximately 4%, while suburban areas experience higher rates up to 12%.
Almadies, Ngor, Mermoz, and Plateau demonstrate the strongest rental markets with vacancy rates around 4%, reflecting consistent demand from expatriates and professionals. These areas benefit from proximity to business districts, international schools, and diplomatic missions.
Suburban and outer districts including Pikine and Yoff face higher vacancy rates between 8% to 12% due to increased new supply and longer commute times to central business areas. The construction boom in these areas has created temporary oversupply conditions affecting rental absorption rates.
Luxury properties in coastal areas maintain relatively low vacancy rates despite higher purchase prices, as demand from high-income expatriates and diplomatic personnel remains strong throughout the year.
What are the typical taxes, costs, and mortgage conditions involved in buying and renting out property?
Property investment in Dakar involves several mandatory costs and taxes that impact overall returns on rental properties.
Purchase costs include a transfer tax of approximately 2% of the sale price, notary fees around 1.5%, and registration fees of about 1%, totaling roughly 4.5% in transaction costs. Annual property tax equals 5% of the potential rental value, creating an ongoing expense for property owners.
Mortgage financing typically requires a down payment of 20% to 30% of the purchase price, with loan terms spanning 15 to 20 years and interest rates ranging from 7% to 10%. Local banks generally require proof of income and may have stricter lending criteria for foreign investors.
Additional ongoing costs include property management fees if using professional services, maintenance and repairs, insurance, and potential periods of vacancy. These expenses typically reduce gross rental yields by 1% to 3% to calculate net returns.
It's something we develop in our Senegal property pack.
How do rental yields differ between short-term and long-term rentals?
Short-term rentals in Dakar consistently outperform long-term rentals, delivering gross yields of 10% to 12% compared to 5% to 8% for traditional leases.
Airbnb properties in coastal Dakar, particularly in areas like Yenne, generate average monthly revenues of $3,131 with 31% occupancy rates and $56 average daily rates. Short-term rental success depends heavily on location, with coastal and diplomatic areas performing significantly better than suburban properties.
Long-term rentals offer greater stability and lower operational costs, requiring minimal day-to-day management once tenants are established. These properties typically achieve occupancy rates above 90% in prime areas, providing predictable monthly income streams.
However, short-term rentals involve higher management costs including cleaning, guest communication, booking platform fees, and more frequent maintenance. The net yield difference narrows when considering these additional expenses, though short-term rentals often maintain a 2% to 4% advantage in prime locations.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Senegal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What is the average gross and net rental yield today, broken down by property type and location?
| Property Type & Location | Gross Rental Yield | Net Rental Yield | Key Factors |
|---|---|---|---|
| Luxury Apartments (Almadies) | 8-10% | 6-8% | High-end expat demand |
| Standard Apartments (Central) | 6-8% | 5-6% | Professional tenant base |
| Houses (Suburbs) | 4-6% | 3-4% | Oversupply challenges |
| Beachfront Properties | Up to 10.5% | 7-8% | Tourism and expat appeal |
| Commercial Spaces | 7-9% | 5-7% | Corporate tenant stability |
| Short-term Rentals (Coastal) | 10-12% | 7-9% | Higher management costs |
| Affordable Housing (Outer areas) | 4-6% | 3-4% | Higher vacancy risk |
How have average rents and yields changed compared with five years ago and one year ago?
Dakar's rental market has experienced significant growth over the past five years, with apartment rents increasing 19% to 23% and luxury properties appreciating 20%.
House prices have risen 15% to 18% over the five-year period, while rental yields have remained relatively stable in prime neighborhoods but declined in suburban areas due to oversupply. The consistent demand from expatriate communities and economic growth has supported rent increases in central and coastal areas.
In the most recent year (2024-2025), rent inflation was -0.3% in July 2025, representing a slight decrease attributed to increased housing supply hitting the market. This temporary softening contrasts with the longer-term upward trend but reflects normal market adjustments.
Prime area yields have held steady or improved slightly, while suburban yields face downward pressure from new construction. The divergence between premium and affordable housing segments continues to widen, creating distinct investment strategies for different market segments.
What are the forecasts for rents and yields in the next 1, 5, and 10 years?
Dakar's rental market is projected to achieve steady growth with rent increases of 3% to 7% annually over the next year, driven by continued economic development and expatriate demand.
Five-year forecasts indicate sustained price and rent growth of 3% to 7% per year, with prime locations significantly outpacing suburban areas. Infrastructure improvements and growing international business presence support optimistic projections for central and coastal neighborhoods.
The ten-year outlook remains positive with steady appreciation expected, though suburban yields face continued pressure from potential oversupply. Prime locations including Almadies, Plateau, and Ngor are expected to maintain their premium positioning and strong rental demand.
Key risks include suburban oversupply potentially causing yield compression and economic fluctuations affecting expatriate presence. However, Dakar's status as a regional business hub and ongoing infrastructure investments support long-term growth prospects for well-located properties.
It's something we develop in our Senegal property pack.
How do Dakar's rental yields compare with other similar big cities in Africa and worldwide?
Dakar delivers competitive rental yields of 6% to 10% gross, positioning it favorably among major African cities and international markets.
Compared to Bangkok, which offers 4% to 6% gross yields (2.5% to 4% net), Dakar provides superior returns for property investors. Among expensive African cities, Dakar ranks with a market index of $68.2, alongside Libreville and Accra as top-tier investment destinations.
Typical yields in Sub-Saharan African major cities range from 5% to 9%, placing Dakar on the higher end particularly for prime districts and beachfront properties. The city's beachfront properties achieving up to 10.5% gross yields compare favorably with coastal markets globally.
Dakar's combination of political stability, growing economy, and strategic location as a regional hub supports sustainable rental demand. The presence of international organizations, diplomatic missions, and multinational corporations creates a robust expatriate rental market uncommon in many African cities.
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 offers attractive yields for informed investors, with prime coastal areas delivering the strongest returns and most stable demand.
Short-term rentals and luxury properties in diplomatic districts provide the highest yields, while suburban areas require careful evaluation due to oversupply concerns.
Sources
- TheAfricanVestor - Dakar Price Forecasts
- TheAfricanVestor - Senegal Price Forecasts
- TheAfricanVestor - Dakar Property
- TheAfricanVestor - Senegal Best Areas
- ICTD - Property Tax Valuation Reform Dakar
- TheAfricanVestor - Buy Land Senegal
- Rentberry - Dakar Apartments
- Global Property Guide - Senegal Rental Yields
- Numbeo - Dakar Property Investment
- Trading Economics - Senegal Rent Inflation