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Cameroon's secondary cities offer compelling property investment opportunities beyond the traditional strongholds of Douala and Yaoundé. Cities like Kribi, Buea, and Dschang present attractive rental yields ranging from 5-7%, with significantly lower entry costs and strong growth potential driven by infrastructure development and demographic trends.
These emerging markets benefit from government investment programs, including the July 2025 tax incentive ordinance that offers up to 75% tax credits for investments in priority zones. With Cameroon facing a housing deficit of 2.5 million units and ongoing infrastructure projects like the Kribi Deep Seaport expansion, secondary cities represent strategic investment opportunities for both capital appreciation and rental income generation.
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Secondary cities in Cameroon offer gross rental yields of 5-7%, with property prices 50-70% lower than Douala and Yaoundé city centers.
Kribi leads growth potential with 5% annual appreciation driven by port development, while Dschang benefits from strong student housing demand.
| City | Rental Yield | Avg Price/m² (City Center) | Annual Appreciation | Key Growth Driver |
|---|---|---|---|---|
| Kribi | 5-7% | $650-800 | 5% | Deep Seaport & Industrial Zone |
| Buea | 5-7% | $650-800 | 3-4% | University & Regional Center |
| Dschang | 5-7% | $600-900 | 4-5% | Student Population |
| Douala (Reference) | 7-13% | $1,850-1,890 | 3-7% | Economic Capital |
| Yaoundé (Reference) | 6-10% | $1,850 | 3-7% | Political Capital |
What are the current rental yields in cities like Kribi, Buea, and Dschang compared to Douala and Yaoundé?
Secondary cities in Cameroon offer gross rental yields between 5-7%, which are competitive considering their significantly lower property acquisition costs.
Kribi delivers rental yields in the 5-7% range, supported by growing demand from port workers and industrial zone employees. The city's tourism potential also creates seasonal rental opportunities that can boost overall returns. Buea offers similar yields of 5-7%, benefiting from its status as a regional administrative center and the presence of the University of Buea, which creates consistent demand for student accommodation and faculty housing.
Dschang maintains rental yields of 5-7%, with particularly strong performance in the student housing segment due to the University of Dschang. The city experiences near-full occupancy rates during academic periods, providing stable income streams for property investors.
In comparison, Douala city center properties achieve higher gross rental yields of 7-13%, while Yaoundé delivers 6-10% yields. However, these major cities require significantly higher initial investments, with city center prices reaching $1,850-1,890 per square meter compared to $600-900 per square meter in secondary cities.
It's something we develop in our Cameroon property pack.
What is the average price per square meter in city centers versus outskirts in these cities?
Property prices in secondary Cameroonian cities show significant variations between city centers and outskirts, offering investors multiple entry points.
Kribi city center properties average $650-800 per square meter, while outskirt areas range from $500-600 per square meter. This represents a 20-25% discount for suburban locations, which often provide better value for rental properties targeting families and long-term residents.
Buea follows a similar pricing structure with city center rates of $650-800 per square meter and outskirt prices of $500-600 per square meter. The proximity to Mount Cameroon and cooler climate makes both central and peripheral areas attractive to different tenant segments.
Dschang shows a wider price range with city center properties at $600-900 per square meter and outskirts at $400-600 per square meter. The university area commands premium prices due to consistent student demand, while residential zones on the periphery offer excellent value for money.
For context, Douala city center averages $1,850-1,890 per square meter with outskirts at approximately $694 per square meter. Yaoundé maintains similar city center pricing at $1,850 per square meter and outskirt rates around $694 per square meter.
Which cities are experiencing the highest annual property value appreciation?
Kribi leads secondary cities in property value appreciation with annual growth rates of approximately 5%, driven by major infrastructure investments and economic zone development.
The Kribi Deep Seaport expansion and industrial zone projects are creating thousands of jobs and attracting businesses, directly translating into increased housing demand and property values. The port facility alone is expected to handle significant cargo volumes, positioning Kribi as a major economic hub for Central Africa.
Dschang experiences annual appreciation rates of 4-5%, supported by stable university enrollment and ongoing urban development projects. The student population provides consistent demand that helps maintain price stability and gradual growth.
Buea shows more modest appreciation of 3-4% annually, though this reflects sustainable growth rather than speculative bubbles. The city's role as a regional center and educational hub provides steady fundamentals for property value increases.
Douala and Yaoundé currently achieve 3-7% annual appreciation, with certain neighborhoods like Bonamoussadi in Douala and Nkolbisson in Yaoundé showing above-average growth due to targeted development and improved transport links.
Are there any emerging urban centers with rapid growth potential?
Several emerging urban centers in Cameroon present exceptional growth potential for property investors as of September 2025.
Kribi stands out as the most promising emerging center, anchored by the deep-sea port and industrial zone expansion. The World Bank-backed infrastructure projects and government commitment to developing Kribi as a regional trade hub create strong fundamentals for sustained property demand growth.
Bonamoussadi, a neighborhood in Douala, is experiencing rapid gentrification and urban renewal. Transport upgrades and infrastructure improvements are driving increased rental demand and rising property values, making it an attractive micro-market within the broader Douala area.
Dschang continues to strengthen its position as a university town with expanding educational facilities and supporting infrastructure. The large student population drives near-full occupancy rates for rental properties, creating stable investment opportunities.
These emerging centers benefit from government development priorities and private sector investment, positioning them for sustained growth over the next 5-10 years. Infrastructure projects, job creation, and demographic trends support long-term property value appreciation in these markets.
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What is the current housing deficit in these cities, and how does it impact investment opportunities?
Cameroon faces a national housing deficit of approximately 2.5 million units, with significant shortages affecting both major cities and secondary urban centers.
This acute housing shortage creates sustained demand for new housing developments across all market segments. In secondary cities like Kribi, Buea, and Dschang, the deficit is particularly pronounced in affordable housing and student accommodation sectors.
The housing shortage supports continued price and rent growth by maintaining strong demand pressure. Developers and investors who can address specific housing needs, particularly affordable units and student housing, benefit from this structural demand imbalance.
Government initiatives to address the housing deficit include incentive programs for developers and investors, creating opportunities for foreign investment in residential projects. The July 2025 tax incentive ordinance specifically targets housing development as a priority sector.
This shortage also means that well-located, quality properties in secondary cities face minimal vacancy risk and can command premium rents relative to their acquisition costs.
What are the average construction costs for a standard three-bedroom house in these cities?
Construction costs in secondary Cameroonian cities are significantly lower than major urban centers, making development projects financially attractive.
A mid-range three-bedroom house in suburban areas of Kribi, Buea, or Dschang costs approximately 30-50 million XAF ($48,000-$82,000) to construct. Urban city center constructions with higher-end finishes range from 60-90 million XAF for upper-middle-class builds.
Construction costs per square meter range from 120,000-400,000 XAF, depending on location, materials quality, and finish level. Secondary cities benefit from lower land costs and reduced labor expenses compared to Douala and Yaoundé.
These construction costs make build-to-rent projects particularly viable in secondary cities, where investors can achieve attractive returns on investment through rental income while building equity through property ownership.
Local materials availability and established construction supply chains in these cities help control costs and ensure project completion timelines.
Are there any government incentives or tax breaks available for real estate investors in these regions?
The July 2025 ordinance introduced comprehensive tax incentives that make real estate investment in secondary cities highly attractive.
Investors can obtain tax credits equivalent to up to 25% of capital invested in general projects, 50% in priority zones, and 75% in remote areas. These credits are deductible against corporate tax and can be carried forward for five years if not immediately used.
Exemptions from stamp duty and transfer taxes are available for qualifying real estate investments, reducing transaction costs significantly. Secondary cities often qualify for higher incentive rates due to their classification as priority development zones.
The government actively promotes investment in affordable housing and student accommodation through these incentive programs, making projects in cities like Dschang and Kribi particularly attractive from a tax perspective.
These incentives represent a significant shift in government policy to encourage private sector participation in addressing Cameroon's housing deficit, particularly in emerging urban centers.
It's something we develop in our Cameroon property pack.
What are the transaction costs involved in property purchases, including taxes and fees?
Property transaction costs in Cameroon typically range from 8-15% of the property value, covering various administrative and legal requirements.
These costs include notary fees, registration charges, land title issuance, and municipal survey fees. The specific percentage depends on property location, value, and whether government incentives apply to reduce certain charges.
Annual property tax is set at 0.1% of the assessed property value, which is relatively low compared to many international markets. This low carrying cost supports rental yield calculations and long-term investment returns.
Cash purchases are legal and require full documentation, but investors should ensure proper legal representation to navigate the administrative requirements. Working with experienced local legal counsel is essential for smooth transactions.
Foreign investors face the same transaction cost structure as domestic buyers, with no additional penalties or fees based on nationality. However, proper due diligence and legal compliance are crucial for successful property acquisition.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cameroon 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.
How long does it typically take to resell a property in these cities?
Property resale timelines in secondary Cameroonian cities typically range from 2-6 months, depending on property quality, location, and current market demand.
Well-located properties in city centers or near universities generally sell faster, often within 2-3 months, due to consistent demand from both investors and end-users. Properties in emerging areas like Kribi may take 4-6 months as the buyer pool is still developing.
Properties priced competitively and properly marketed through local real estate networks typically achieve faster sales. The growing interest from both domestic and foreign investors is gradually improving market liquidity in these cities.
Market conditions in September 2025 favor sellers due to strong demand and limited supply, particularly for quality properties in good locations. This seller's market environment supports faster transaction times and better pricing.
Engaging experienced local real estate agents familiar with secondary city markets significantly improves resale speed and pricing outcomes for property investors.
What is the level of foreign investor interest in these markets?
Foreign investor interest in secondary Cameroonian cities is growing steadily, supported by regulatory reforms and infrastructure development projects.
Kribi attracts significant foreign attention due to its industrial zone development and strategic position as a trade gateway. International investors recognize the port city's long-term growth potential and are actively acquiring properties in anticipation of continued development.
Dschang draws foreign investment interest focused on student accommodation and rental properties, as international investors appreciate the stable demand from the university population and relatively low entry costs.
Government regulatory reforms and the new tax incentive structure have improved the investment climate for foreign buyers, making property acquisition more attractive and financially beneficial.
Foreign investor activity is concentrated in quality properties with clear title and good locations, as international buyers prioritize legal security and growth potential over bargain pricing.
Are there any infrastructure projects underway that could influence property values?
Major infrastructure projects across secondary cities are creating significant opportunities for property value appreciation.
The Kribi Deep Seaport expansion represents the largest infrastructure investment, with World Bank backing and government commitment to developing surrounding industrial zones. This project alone is expected to create thousands of jobs and drive substantial housing demand growth.
Highway improvements including the Edea-Kribi highway, Douala-Limbe highway, and Douala-Yaoundé highway are improving connectivity and reducing travel times, making secondary cities more attractive for both businesses and residents.
Urban infrastructure upgrades in Bonamoussadi (Douala), road repairs in Dschang, and digital/utility expansion in university cities are improving quality of life and supporting property value growth.
These infrastructure investments are backed by both government funding and international development finance, ensuring project completion and long-term economic impact on surrounding property markets.
It's something we develop in our Cameroon property pack.
What are the socio-political conditions in these cities, and how might they affect investment stability?
Socio-political conditions vary across secondary cities, with most offering stable investment environments while some regions require careful risk assessment.
Kribi maintains a stable socio-political environment with heavy state involvement in economic zone and port development. Government commitment to the city's development as a trade hub provides confidence in long-term stability and continued investment support.
Douala and Yaoundé maintain strong institutional presence and government investment in infrastructure, creating generally stable business environments for property investment.
Buea and parts of Southwest Cameroon continue to experience occasional instability due to separatist activity, which may influence risk assessments and market liquidity. Investors should conduct ongoing due diligence and consider this factor in investment decisions.
Dschang benefits from its university town status and central location, maintaining relative stability that supports consistent property demand. The educational focus creates a more stable social environment compared to purely commercial or industrial centers.
Overall, most secondary cities offer acceptable risk profiles for property investment, though investors should maintain awareness of regional political developments and adjust strategies accordingly.
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.
Secondary cities in Cameroon present compelling investment opportunities with rental yields of 5-7% and significantly lower entry costs than major urban centers.
Kribi leads growth potential with infrastructure development, while Dschang offers stable returns through student housing demand, making both attractive for diversified property portfolios.
Sources
- The AfricanVestor - Cameroon Property Investment Guide
- BambooRoutes - Average Rent in Cameroon
- The AfricanVestor - Best Areas in Cameroon
- Numbeo - Property Investment in Douala
- BambooRoutes - Average Price per sqm Yaoundé
- BambooRoutes - Average Price per sqm Douala
- The AfricanVestor - Cameroon Price Forecasts
- World Bank - Cameroon Infrastructure Project
- Africa24 TV - Cameroon Housing Deficit
- UnlimitedTech - Construction Costs Cameroon