Authored by the expert who managed and guided the team behind the Senegal Property Pack
Everything you need to know before buying real estate is included in our Senegal Property Pack
Senegal's rental yields range from 6.3% to 9.0% nationally, with tourist areas reaching up to 11%.
Dakar dominates the investment landscape with prices averaging CFA 941,193-1,102,649 per m² for apartments, while coastal towns like Saly offer emerging opportunities. The market shows strong fundamentals with GDP growth at 10.1% and relatively stable financing at 8.15% mortgage rates, making it one of the most attractive African coastal capitals for property investment.
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.
Senegal offers competitive rental yields of 6.3-9.0% nationally, with Dakar leading investment opportunities and coastal areas providing higher returns up to 11%.
The market benefits from strong economic growth at 10.1% GDP expansion, reasonable financing costs at 8.15% mortgage rates, and growing expat and tourist demand across key neighborhoods.
| Investment Area | Average Price/m² | Gross Yield Range |
|---|---|---|
| Dakar - Almadies (luxury) | CFA 3.5-5.5 million | 6-8% |
| Dakar - Central areas | CFA 941,193-1,102,649 | 7-9% |
| Thiès region | CFA 814,854 | 7-9% |
| Coastal towns (Saly) | CFA 887,875-1,042,323 | 8-11% |
| National median | CFA 1,042,323 | 6.3-9.0% |
Which cities and neighborhoods in Senegal should I target first, and what are the typical purchase prices per m²?
Dakar remains the top investment destination in Senegal, offering the highest rental demand and most established infrastructure.
The premium Almadies neighborhood commands the highest prices at CFA 3.5-5.5 million per m², targeting luxury apartments and villas for expat and tourist markets. Fann Résidence offers elite residential opportunities with rental premiums 50% above median rates, though sales inventory remains limited.
Medina and Plateau districts provide more affordable entry points while maintaining good rental yields due to their central location and mixed tenant profile. Maristes offers family-friendly properties with strong occupancy rates and consistent growth potential, while Western Corniche provides stable returns with relatively high median prices.
Outside Dakar, Thiès region presents affordable opportunities with apartment prices averaging CFA 814,854 per m², benefiting from growing urbanization. Coastal towns like Saly and Rufisque show surging prices driven by tourism demand and foreign investment interest.
It's something we develop in our Senegal property pack.
What's the true all-in acquisition cost for each candidate property?
The total acquisition cost extends significantly beyond the purchase price, adding 15-30% to your initial investment.
Notary fees range from 0.75% to 4.5% of the property price, with buyers responsible for payment. Land registry fees add 6% to the purchase price, representing the largest single additional cost. Legal fees vary by transaction complexity but typically add around 1% of the property value.
Agency commissions of 5-8% are usually paid by the seller, though this cost may be factored into the listing price. Renovation and furnishing costs vary dramatically based on property condition and target market - expect CFA 5-20 million for light apartment refurbishment and CFA 20-100 million for complete villa renovation.
A contingency buffer of 5-10% of total hard costs helps cover unexpected expenses during the acquisition process. For a CFA 80 million apartment in Dakar, total costs including renovations and contingency typically reach CFA 95-105 million excluding agency fees.
How would different financing options change the investment picture?
Senegalese mortgage rates currently average 8.15% for 15-25 year terms, requiring minimum down payments of 20-30%.
For an CFA 80 million property with 25% down payment (CFA 20 million), monthly payments on a 25-year term at 8.15% would be approximately CFA 500,000-650,000 depending on loan structure. This financing cost significantly impacts cash flow projections and overall returns.
Debt-service coverage ratio (DSCR) targets should exceed 1.2, with most lenders preferring rent-to-payment ratios above 1.2 and ideally above 1.5 for loan approval. Higher down payments improve cash flow but reduce leverage benefits that could amplify returns in an appreciating market.
Foreign buyers may face additional documentation requirements and potentially higher interest rates, making cash purchases more attractive for international investors despite the opportunity cost of capital deployment.
What are realistic market rents right now in different areas?
| Property Type & Size | Dakar City Center | Dakar Suburbs | Thiès/Coast |
|---|---|---|---|
| 30 m² studio | CFA 225,000-325,000/month | CFA 150,000-250,000/month | CFA 120,000-220,000/month |
| 60 m² (1-2 BR) | CFA 450,000-700,000/month | CFA 300,000-550,000/month | CFA 180,000-400,000/month |
| 150 m² villa/house | CFA 1,200,000-2,500,000/month | CFA 850,000-1,500,000/month | CFA 700,000-1,300,000/month |
| Short-term premium | +15-40% above long-term | +15-30% above long-term | +20-40% in tourist areas |
| Commercial space | 30-70% above residential/m² | 20-50% above residential/m² | Variable by location |
Don't lose money on your property in Senegal
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 occupancy and vacancy rates should I expect by area and property type?
Occupancy rates vary significantly between rental strategies and locations, with long-term lets generally offering more stability.
Dakar central areas achieve 65-85% average occupancy for short-term rentals, reaching up to 95% during peak tourist season from December to March. Suburban and coastal areas typically see 55-70% occupancy, with coastal properties peaking at 90% during tourist season but dropping to 40-60% in off-season periods.
Long-term rental strategies provide more consistent occupancy, exceeding 85% in prime Dakar areas and maintaining 70-80% in mid-market locations. Seasonal fluctuations affect long-term lets less dramatically, making them more predictable for cash flow planning.
Tourist-dependent areas like Saly experience the highest seasonal variation, while business districts and residential neighborhoods maintain steadier demand throughout the year. Property type also influences occupancy, with furnished apartments and villas commanding higher rates but potentially longer vacancy periods between tenants.
Who are the main renter profiles in each segment?
Tourist renters concentrate in Saly, Almadies, and Plateau areas, typically staying 1-4 weeks with peak demand from December to March.
Expat, NGO, and corporate staff represent the most stable rental segment, favoring upscale furnished properties in Almadies, Fann, and Plateau. These tenants typically sign 6-36 month leases and demonstrate strong pricing power due to employer housing allowances and higher income levels.
Student renters focus on Medina and central Dakar areas, following academic calendar patterns with 6-12 month lease terms. This segment tends to be price-sensitive and prefers basic furnished accommodations near educational institutions.
Local family renters dominate suburban areas and Thiès, preferring villas and houses for lease terms exceeding one year. This segment shows the highest price sensitivity but provides the most stable long-term occupancy with minimal seasonal variation.
Each renter profile influences pricing power differently, with tourists providing the highest rates but greatest seasonality, while locals offer stability at lower rental premiums.
What ongoing operating costs will I carry?
Operating costs significantly impact net yields and require careful budgeting across multiple expense categories.
HOA and condo fees range from CFA 35,000-120,000 monthly for apartments, varying by building amenities and services. Utilities cost CFA 25,000-65,000 monthly for apartments and CFA 80,000-200,000 monthly for villas, with air conditioning driving higher costs in Senegal's climate.
Internet service adds CFA 15,000-40,000 monthly, while property insurance ranges from CFA 40,000-100,000 annually for apartments and CFA 80,000-250,000 annually for villas. Routine maintenance costs CFA 100,000-250,000 annually for apartments and CFA 400,000-1,200,000 annually for villas.
Property management fees consume 7-12% of gross rent for short-term rentals and 5-7% for long-term lets. Short-term rental platforms charge 12-25% of gross revenue including cleaning and booking fees. Property and rental taxes include income tax on rental income, with corporate rates at 30% for company-held properties and VAT potentially applicable to short-term rentals.
What are the gross yield, net operating income, and cash-on-cash returns?
Senegal's property market delivers gross yields of 6.3-9.0% nationally, with tourist areas reaching 10-11% at the high end.
Net operating income results from gross rental income minus all operating costs including management, maintenance, utilities, insurance, and taxes. After deducting these expenses, net yields typically range from 4.5-7.5% depending on property type, location, and rental strategy.
Cash-on-cash returns vary significantly based on leverage use and down payment size. With 30% down payment financing, unleveraged returns in tourist areas can reach 11-16%, while other locations typically deliver 6-10% cash-on-cash returns.
Higher-end properties in Almadies and tourist zones command premium rents but also carry higher operating costs and potentially longer vacancy periods. Mid-market properties often provide the best risk-adjusted returns with steady demand and manageable operating expenses.
It's something we develop in our Senegal property pack.
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 are the landlord regulations and tax rules I must comply with?
Short-term rental operations require a tourist license ("meublé touristique") for legal compliance and platform listing eligibility.
All properties must be properly registered with buyers receiving "titre foncier" documentation proving ownership. Rental income faces progressive taxation, with depreciation benefits available to reduce taxable income. Properties held through corporate structures face 30% corporate tax rates, while individual ownership follows personal income tax brackets.
VAT may apply to short-term rental operations depending on revenue thresholds and business structure. Annual tax filing requirements mandate proper record-keeping of rental income, expenses, and tenant information. Penalties for unregistered short-term rentals can include fines and platform removal.
Foreign investors face additional documentation requirements but can legally own property with proper registration. Estate planning considerations become important for foreign owners regarding inheritance and transfer procedures under Senegalese law.
How have purchase prices, rents, and yields changed over recent years?
Dakar property prices have increased 3-7% annually over the past year, with five-year appreciation reaching 20-35% in prime areas.
Rental rates have grown 2-4% annually, with the strongest increases in expat-targeted neighborhoods and tourist zones. This growth reflects expanding economic activity, increasing foreign investment, and limited supply in desirable locations.
Occupancy rates have remained relatively stable in central areas while showing higher volatility in tourist-dependent zones. The COVID-19 pandemic temporarily impacted short-term rental demand, but recovery has been strong particularly in business and expat segments.
Yield compression has occurred in some premium areas as purchase prices have outpaced rental growth, though overall market yields remain attractive compared to regional alternatives. Infrastructure improvements and economic growth continue supporting both capital appreciation and rental demand across multiple market segments.
What are the forecasts for rents, prices, and yields over the next decade?
Base case scenarios project property price increases of 3-6% annually for 2026, with rental growth of 2-4% across most market segments.
Five-year forecasts suggest price appreciation of 20-30% with rental growth of 12-18%, maintaining relatively stable yield environments. Continued technology sector expansion, tourism growth, and infrastructure development support positive fundamentals for sustained market growth.
Downside risks include potential civil disruptions, economic slowdowns, or overbuilding in specific market segments that could flatten price growth and reduce yields by 1-2 percentage points. Political stability and economic policy consistency remain key factors for long-term market performance.
Upside scenarios involve accelerated technology adoption, tourism boom, and major infrastructure projects that could drive yields and prices above regional averages, particularly benefiting mid-market and luxury segments. Dakar's position as a regional business hub supports optimistic long-term prospects for sustained investment returns.
How do Senegal opportunities compare with similar African coastal capitals?
| City | Price/m² (USD) | Gross Yield | Mortgage Rate | Risk Level |
|---|---|---|---|---|
| Dakar, Senegal | $2,193 | 6.3-9.0% | 8.15% | Moderate |
| Abidjan, Côte d'Ivoire | $2,061 | 5.7-8.0% | 12.77% | Moderate-High |
| Accra, Ghana | $2,500+ | 5.0-7.5% | 15%+ | High |
| Lagos, Nigeria | $1,499 | 6.0-9.0% | 18%+ | High |
| Casablanca, Morocco | $1,800 | 4.5-6.5% | 4.5% | Low-Moderate |
Senegal offers the best combination of yield potential, financing accessibility, and political stability among West African coastal capitals.
Dakar provides superior liquidity compared to other regional markets, with established property transaction processes and growing international investor presence. The 8.15% mortgage rate represents the most accessible financing among comparable markets, significantly improving investment feasibility.
GDP growth at 10.1% exceeds most regional peers, supporting fundamental demand for residential and commercial property. The moderate risk profile reflects stable governance and diversified economy compared to oil-dependent neighbors.
The optimal strategy targets mid-upper segment apartments and villas in stable Dakar neighborhoods like Almadies, Fann, Plateau, and Maristes, combining short and long-term rental strategies for balanced yield and capital appreciation potential.
It's something we develop in our Senegal property pack.
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.
Senegal's property market offers compelling investment opportunities with gross yields of 6.3-9.0% nationally and up to 11% in prime tourist areas, supported by strong economic fundamentals and accessible financing.
The optimal investment strategy focuses on mid-upper segment properties in established Dakar neighborhoods, combining short and long-term rental approaches to balance yield maximization with occupancy stability across diverse tenant segments.
Sources
- The AfricanVestor - Dakar Price Forecasts
- Loger Dakar - Where to Invest in Dakar
- Properstar - Senegal House Prices
- The AfricanVestor - Senegal Price Forecasts
- The AfricanVestor - Senegal Real Estate for Foreigners
- Chambers Practice Guides - Senegal Investment Guide
- The AfricanVestor - Senegal Property Investment
- The AfricanVestor - How to Buy Property in Senegal