What makes Cameroon property dangerous for foreign investors?

Authored by the expert who managed and guided the team behind the Cameroon Property Pack

Everything you need to know before buying real estate is included in our Cameroon Property Pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cameroon. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Cameroon real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Douala, Yaoundé, and Bafoussam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Cedella Besong 🇨🇲

Co-Founder & CEO, CFB Holding

Cedella Besong is the Co-Founder & CEO of CFB Holding, leading the company's mission to drive social and economic development across Cameroon. With a strong background in global business and marketing, she is deeply committed to projects that create lasting impact—whether in real estate, education, or sustainable agriculture. Cedella believes that investment should go beyond profit, focusing on innovation and community empowerment to build a brighter future for Cameroon.

What is the current political climate in Cameroon and how does it affect property ownership for foreign investors?

Cameroon's political climate remains highly unstable as of September 2025, with significant tensions building ahead of the October 2025 presidential elections.

President Paul Biya's longstanding rule faces mounting challenges from civil unrest, particularly in the Anglophone regions where separatist movements continue to create security concerns. The uncertainty surrounding presidential succession adds another layer of investment risk, as policy continuity cannot be guaranteed after the elections.

The dominant party system and high centralization of power create an environment where property regulations and enforcement can change suddenly based on political developments. Foreign investors face particular scrutiny during periods of political tension, with authorities often viewing international property acquisitions through a security lens.

Border regions and areas classified as strategically sensitive face additional restrictions that can be imposed or modified without prior notice. This political volatility directly impacts investment certainty and can affect property values, especially in regions experiencing active conflict or civil unrest.

While foreign property ownership remains legally permitted, the practical implementation of these rights becomes more challenging during periods of political instability.

How stable is the legal framework surrounding property rights in Cameroon, especially for foreigners?

The legal framework for property rights in Cameroon appears robust on paper but suffers from significant inconsistencies in practical enforcement, creating substantial risks for foreign investors.

Cameroon's property law theoretically permits foreign ownership, primarily through buildings or leasehold arrangements rather than outright land ownership. However, the system excludes border zones and strategic security areas, with definitions that can be interpreted broadly by authorities.

All foreign property transactions require extensive documentation and often need ministerial approval, creating a bureaucratic maze that can take 2-6 months to navigate. Transaction costs typically range from 8-15% of the purchase price, significantly higher than many other African markets.

The legal process involves higher scrutiny for foreign buyers, including additional documentation requirements and proof of development intentions for larger acquisitions. Ministry of Lands approval is mandatory for most purchases, adding another layer of complexity and potential delay.

The gap between written law and actual enforcement creates uncertainty, with local interpretations varying significantly across different regions and administrative levels.

What are the specific risks related to property title fraud and how common is it in Cameroon?

Title fraud represents the most significant risk for property investors in Cameroon, affecting up to 65% of all real estate disputes according to current legal data.

Document forgery is widespread, with fake land titles, falsified registration stamps, and counterfeit notarization being common practices. Multiple sales of the same property to different buyers occur frequently, leaving legitimate purchasers in lengthy legal battles to establish ownership.

The lack of a centralized, digitized land registry system makes verification of authentic titles extremely difficult. Many areas still rely on paper-based systems that are easily manipulated or destroyed.

Inheritance-related fraud is particularly common, where properties are sold by individuals who falsely claim inheritance rights or forge succession documents. The complexity of proving family lineage and inheritance rights in rural areas makes this type of fraud especially challenging to detect.

It's something we develop in our Cameroon property pack.

How do land disputes and customary land tenure systems affect property investments in Cameroon?

Land disputes in Cameroon stem from the complex coexistence of statutory (formal) and customary (traditional) land tenure systems, creating persistent investment risks throughout the country.

Dispute Type	Common Causes	Resolution Timeline
Boundary Disputes	Unclear surveys, overlapping claims, inadequate mapping	1-3 years
Multiple Sales	Weak title verification, corrupt practices	2-5 years
Inheritance Claims	Unclear succession laws, family disputes	3-7 years
Customary vs Statutory	Overlapping land tenure systems	5-10 years
Community Rights	Traditional use patterns, sacred sites	2-8 years
Government Acquisition	Public interest projects, compensation disputes	1-4 years
Environmental Claims	Protected areas, conservation requirements	2-6 years

Many urban properties and nearly all rural holdings rely on customary tenure, which lacks full legal standing unless formalized through land certificates. This creates a fundamental risk for any property investment outside major urban centers.

Traditional communities may claim historical rights to land that has been formally titled, leading to complex legal battles that can take years to resolve. The conflict between modern property law and traditional land use patterns creates ongoing uncertainty for property investors.

What are the taxation laws for foreign property investors and how do they compare to local investors?

Foreign property investors in Cameroon face similar tax obligations to local investors, but with additional compliance requirements and potential penalties for non-compliance.

A 15% withholding tax applies to gross real estate income for both foreign and local property owners. However, foreign investors can deduct charges equivalent to 30% of gross rental income unless they can prove actual expenses with proper documentation.

Annual property taxes are owed by all property owners regardless of nationality, with rates varying by location and property type. Urban properties typically face higher tax rates than rural properties.

Foreign investors may qualify for special incentives under Cameroon's Investment Code for larger projects, but these require substantial investment commitments and proof of economic benefit to local communities. The application process for these incentives can take 6-12 months and requires significant legal assistance.

Transfer taxes and registration fees apply to all property transactions, with foreign buyers sometimes facing additional scrutiny during the payment process.

Are there restrictions on foreign ownership of property in certain areas of Cameroon?

Yes, significant restrictions exist on foreign property ownership in specific areas of Cameroon, with some zones completely off-limits to international investors.

1. **Border zones and strategic security areas**: Completely restricted to foreign ownership, with definitions that can be interpreted broadly by security authorities 2. **Agricultural land**: Most agricultural properties require special permits and proof of agricultural development plans 3. **Customary or community lands**: Traditional lands that lack formal titling are generally inaccessible to foreign investors 4. **Protected environmental areas**: National parks, forest reserves, and conservation zones prohibit foreign ownership 5. **Military installations vicinity**: Properties within specified distances of military bases face ownership restrictions

Ministry of Lands approval is mandatory for most foreign purchases, and investors must often prove development intentions and demonstrate economic benefit to local communities. The approval process can be lengthy and requires extensive documentation.

Some regions experiencing security issues may have temporary restrictions imposed without prior notice, particularly in areas affected by separatist movements or other civil unrest.

How do the local banking systems and financing options for foreign investors work in Cameroon?

Banking and financing options for foreign property investors in Cameroon are limited and come with significantly higher requirements than those available to local buyers.

Financing is theoretically available but requires substantially higher down payments compared to local investors, typically 40-60% of the property value versus 20-30% for Cameroonians. Interest rates for foreign borrowers range from 12-15% or higher, making financing expensive.

Most property transactions are conducted through cash payments or bank transfers, as mortgage access for foreign buyers remains restricted and often limited to commercial properties or major residential investments. Banks require extensive documentation including proof of income, employment verification, and detailed investment plans.

Foreign currency exchange regulations can complicate large property purchases, with banks requiring documentation of fund sources and compliance with anti-money laundering regulations. Transfer delays and additional fees are common for international wire transfers.

Local banks often lack sophisticated real estate lending products, making the financing process more complex and time-consuming for foreign investors.

What is the process for transferring property ownership in Cameroon and how long does it typically take?

The property transfer process in Cameroon involves multiple steps and typically takes between 2-6 months, with foreign buyers facing additional requirements and scrutiny.

The transfer process includes comprehensive title verification, drafting and notarizing contracts, payment of various taxes and fees, and formal registration with land authorities. Each step requires specific documentation and can face delays due to bureaucratic inefficiencies.

Remote transactions are permitted through notarized power of attorney, but this approach carries additional risks due to common fraud and document irregularities. Careful representation and step-by-step verification become essential when conducting transactions from abroad.

Foreign investors must provide additional documentation including proof of funds source, development intentions for larger properties, and sometimes obtain approval from multiple government ministries. Security clearances may be required for properties in sensitive areas.

The process often involves multiple government offices in different locations, creating opportunities for delays and additional unofficial fees.

How reliable are property valuation methods in Cameroon and how do they affect investment decisions?

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.

Property valuation reliability in Cameroon ranges from moderate to low, creating significant risks for investment decision-making and potential overpayment scenarios.

Formal valuations are required for mortgage applications and tax purposes, but the lack of market transparency and inconsistent public records creates substantial price ambiguity. Many valuation professionals lack adequate training and access to comparable sales data.

Investment returns remain potentially attractive in prime urban areas like Douala and Yaoundé, where rental yields of 6-8% are possible. However, the lower reliability of appraisals outside main cities significantly increases the risk of overpaying or facing future valuation disputes.

The absence of standardized valuation methodologies means different appraisers can reach vastly different conclusions for the same property. Market data is often outdated or incomplete, making accurate price assessment challenging.

It's something we develop in our Cameroon property pack.

What kind of due diligence is required to mitigate risks when purchasing property in Cameroon?

Extensive due diligence is absolutely critical for foreign property investors in Cameroon, requiring multiple layers of verification and professional assistance.

Essential due diligence steps include engaging an experienced property lawyer for comprehensive title verification, documentation review, tax compliance verification, and legal representation throughout the transaction process.

1. **Title verification**: Authenticate land titles and registration stamps, check for liens and encumbrances, verify survey boundaries 2. **Seller background checks**: Investigate seller identity, ownership history, and broker credentials 3. **Legal compliance**: Confirm zoning clearances, environmental approvals, and building permits 4. **Community claims**: Research customary land rights, community use patterns, and historical disputes 5. **Financial verification**: Validate property taxes, utility payments, and outstanding debts 6. **Physical inspection**: Conduct structural surveys, environmental assessments, and infrastructure evaluations

In-depth background checks on sellers and brokers become crucial, especially when dealing with non-formalized or rural properties. The verification process should include checking multiple government databases and consulting with local community leaders.

Due diligence timelines should allow 4-8 weeks for comprehensive investigation, with additional time needed for properties in rural or disputed areas.

Are there any environmental risks or challenges that could affect property values in Cameroon?

Environmental risks pose significant threats to property values in Cameroon, with climate-related challenges becoming increasingly severe and regulatory compliance requirements expanding.

Key environmental risks include widespread flooding, particularly in riverside zones and low-lying areas during seasonal rains. Soil instability affects many regions, especially in areas with poor drainage or unstable geological conditions.

Unrecognized soil and water contamination from industrial activities, mining operations, or inadequate waste management can severely impact property values and create long-term liability issues for property owners.

Environmental due diligence has become increasingly vital as new regulations emerge and climate-related risks intensify. Properties in flood-prone areas face significant depreciation risks and may become uninsurable.

It's something we develop in our Cameroon property pack.

How does current infrastructure impact property value and accessibility for foreign investors?

Infrastructure quality in Cameroon remains inadequate outside major cities, creating substantial risks for property values and accessibility that foreign investors must carefully consider.

Road networks, power supply, water systems, and internet connectivity are generally reliable in Douala and Yaoundé but deteriorate rapidly in secondary cities and rural areas. Properties in well-connected urban areas maintain higher values and better protection from depreciation.

Power outages are frequent outside main cities, with some areas experiencing electricity shortages for days or weeks. Water supply systems are often unreliable, requiring expensive backup systems for consistent service.

Internet and telecommunications infrastructure remains patchy, affecting property desirability for modern tenants and buyers. Poor road conditions can make properties virtually inaccessible during rainy seasons.

Rural and peri-urban property values fluctuate significantly with infrastructure projects and public spending, creating both risks and opportunities for long-term investors willing to bet on future development.

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.

Sources

1. The Conversation - Cameroon's Election Risks
2. Crisis Group - Preventing Unrest in Cameroon
3. TheAfricanVestor - Moving to Cameroon to Buy Property
4. Halle Law - Foreign Property Investment Guide
5. Kinsmen Advocates - Property Law in Cameroon
6. Forchak Laws - Understanding Land Law in Cameroon
7. OpenHub Digital - Real Estate Income Tax Updates
8. ADEC Innovations - Environmental Risk Impacts