All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Everything you need to know is included in our Cameroon Property Pack
Are you thinking of investing in property in Cameroon? Are you contemplating whether you should make a purchase now or in the coming year?
When it comes to market timing, everyone has their own opinion Your Cameroonian colleague might suggest that now is the opportune time to buy property, whereas your friend from Douala may advise exercising a bit more patience before making a decision.
At TheAfricanvestor, when we create articles or update our pack of documents related to the real estate market in Cameroon, we prioritize evidence-based work, relying on reliable data and statistics rather than personal opinions or rumors.
We have gone through official reports and government website statistics in great detail. As a result, we have created a reliable database filled with valuable information. Here's what we found, which can help you decide whether it's the right time to buy real estate in Cameroon.
We hope you find this article helpful!
How is the property market in Cameroon now?
Cameroon is, today, not a stable country
Negative
Stability should be the first thing you look at when you want to invest in real estate because it ensures future planning and financial security. It is an information you need as a foreigner looking to buy real estate in Cameroon.
Regrettably, Cameroon is currently in an unstable state. The last Fragile State Index reported for this country is 94.3, which puts it in the bottom 20 globally.
Cameroon faces instability primarily due to the ongoing Anglophone crisis, where tensions between the English-speaking minority and the Francophone-dominated government have led to violent conflicts and demands for greater autonomy or secession. Additionally, the country grapples with threats from Boko Haram in the Far North region, exacerbating security challenges and contributing to the overall instability.
First check is not great. Let's review more data.
Cameroon is poised for strong growth
Positive
Before investing in properties, assess the country's economic strength.
According to the IMF's estimations, Cameroon will, in 2024, grow by 4.3%, which is a strong number. If we take 2025, we're talking 4.5%.
On the long term, the growth will persist since Cameroon's economy is expected to increase by 19.9% during the next 5 years, resulting in an average GDP growth rate of 4%.
The expected sustainable growth rate in Cameroon indicates a stable and growing economy, which can lead to increased demand for housing and commercial properties. This growth can boost property values and rental income, making real estate investment more attractive and potentially profitable.
That said, GDP growth is just one piece of the puzzle!
Cameroon's population is growing and getting (a bit) richer
Positive
Before you buy a property in a country, think about population growth and GDP per capita, because:
- a growing population means more people needing homes
- a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)
In Cameroon, the average GDP per capita has changed by 0.0% over the last 5 years. The growth, although minimal, is still present. Furthermore, the Cameroonian population is growing (+16% in 5 years).
This means that, if you purchase a spacious house in Douala and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, there might be a rise in rental demand in Cameroonian cities like Douala, Yaoundé, or Bafoussam in 2025.
Rental yields are really attractive in Cameroon
Positive
If you want to know if a property investment can yield profits, study the expected rental yields.
Rental yield is the return on investment you can expect from renting out a property, expressed as a percentage.
According to Numbeo, rental properties in Cameroon offer gross rental yields ranging from 6.1% and 8.8%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Cameroon.
Yields like these are rare to come by.
Everything you need to know is included in our Cameroon Property Pack
In Cameroon, inflation is expected to be minimal
Neutral
Inflation is the steady increase in the prices of everyday items.
It's when your go-to plate of ndolé costs 3,000 Central African CFA francs instead of 2,500 Central African CFA francs a couple of years ago.
If you're contemplating investing in a property, high inflation can offer several advantages:
- Property values have a tendency to increase over time, potentially leading to capital appreciation.
- Inflation can result in higher rental rates, thereby increasing the cash flow from the property.
- Inflation reduces the real value of debt, making mortgage payments more affordable.
- Real estate can act as a hedge against inflation, effectively preserving the value of the investment.
- Diversifying into real estate provides stability during inflationary periods.
As indicated by IMF projections, over the next 5 years, Cameroon will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
This data means that Cameroon will likely experience almost no inflation. If you buy a property now, you may experience lower appreciation potential and reduced returns on investment.
Is it a good time to buy real estate in Cameroon then?
Time to conclude !
While it's true that Cameroon is experiencing economic growth and a stable GDP increase, the current instability in the country might make 2025 a less than ideal time to invest in property. Political and social unrest can create uncertainty in the real estate market, potentially affecting property values and making it difficult to predict future returns. This instability can deter potential buyers and investors, leading to a less favorable environment for purchasing property.
On the bright side, the long-term economic outlook for Cameroon is promising, with an expected GDP growth rate of 4% over the next five years. This growth suggests that the economy is on an upward trajectory, which could eventually lead to increased demand for housing and commercial properties. However, the benefits of this growth might not be fully realized by 2025, as the current instability could overshadow these positive economic indicators.
Cameroon's growing and slightly wealthier population is another factor that could drive demand for real estate in the future. As more people seek housing and commercial spaces, property values and rental income could rise, making real estate investment more attractive. However, the current instability might hinder this potential growth, as people may be hesitant to invest in property during uncertain times.
Despite the potential for high rental yields, ranging from 6.1% to 8.8% according to Numbeo, and minimal inflation, the current instability in Cameroon could pose significant risks for property investors. While the long-term outlook is positive, the short-term challenges may outweigh the potential benefits, making 2025 a less than ideal time to buy property in the country. It's essential to weigh these factors carefully and consider the potential risks before making any investment decisions.
We sincerely hope this article has been helpful!. If you need to know more, you can check our our pack of documents related to the real estate market in Cameroon.
-Will real estate prices go up in Cameroon?
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.