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Cameroon's rental market offers attractive yields ranging from 6% to 12% annually, with one-bedroom apartments in Douala and Yaoundé generating monthly rents between 85,000 to 517,000 CFA. Property investors can expect stable occupancy rates of 92-98% in prime urban locations, though rental income is subject to a 15% withholding tax that tenants must deduct before payment.
The rental income potential varies significantly between cities, with Douala commanding higher rents due to its economic hub status and Yaoundé offering diverse price points depending on proximity to government districts and universities. Both cities benefit from strong rental demand driven by rapid urbanization and a housing deficit estimated at 2.5 million units in urban areas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cameroon, based on reliable facts and data, not opinions or rumors.
Rental yields in Cameroon's major cities range from 6.1% to 10.3% annually for well-positioned properties, with monthly rents averaging 456,000-517,000 CFA in central Douala and 85,000-456,000 CFA in Yaoundé.
Property management costs typically consume 8-15% of rental income, while a 15% withholding tax on gross rental income must be deducted by tenants before payment to landlords.
| Key Metric | Douala | Yaoundé | National Average |
|---|---|---|---|
| Monthly Rent (1BR City Center) | 456,000-517,000 CFA | 85,000-456,000 CFA | Variable by location |
| Annual Rental Yield | 6.1-10.3% | 5-12% | 6-12% |
| Occupancy Rate (Long-term) | 92-98% | 92-98% | 92-98% |
| Property Management Fee | 8-15% of rent | 8-15% of rent | 8-15% of rent |
| Rental Income Tax | 15% withholding | 15% withholding | 15% withholding |
| Annual Property Appreciation | 3-7% | 3-7% | 3-7% |
| Contract Duration | 1 year (renewable) | 1 year (renewable) | 1-3 years typical |
What is the average rental price for a one-bedroom apartment in major cities like Douala or Yaoundé?
Douala commands the highest rental prices in Cameroon, with one-bedroom city center apartments averaging 456,000 to 517,000 CFA per month as of September 2025.
Premium locations in central Douala can reach up to 576,000 CFA monthly when including building charges and utilities. The economic hub status of Douala drives these higher rental rates, as the city attracts business professionals and expatriate workers willing to pay premium prices for quality accommodation.
Yaoundé offers more diverse pricing options, with one-bedroom city center apartments ranging from 85,000 to 456,000 CFA monthly. The wide price range reflects the varied neighborhoods within the capital, from government district premium locations to more affordable outer areas. Central Yaoundé commands higher rents similar to Douala, while peripheral districts offer significantly lower rates.
Location within each city significantly impacts rental pricing, with proximity to business centers, embassies, and major infrastructure driving premium rates.
It's something we develop in our Cameroon property pack.
What is the annual rental yield for residential properties in Cameroon?
Cameroon's residential rental market delivers competitive yields ranging from 6% to 12% annually, with performance varying by location and property type.
Douala and Yaoundé city center apartments typically generate gross yields between 6.1% and 10.3% annually. Well-positioned properties in prime locations consistently achieve the higher end of this range, benefiting from strong tenant demand and limited quality housing supply.
Student housing near universities in Yaoundé can achieve yields up to 12%, representing the highest-performing segment of the rental market. These properties benefit from consistent academic-year demand and the ability to charge premium rates for furnished accommodations near educational institutions.
The national average for residential properties spans 5% to 12%, with lower-end yields typically found in secondary cities or properties requiring significant maintenance investments.
These yields compare favorably to many African markets and reflect Cameroon's growing urbanization and housing shortage.
How much is the property tax for rental income in Cameroon, and how does it affect returns?
Rental income in Cameroon is subject to a 15% withholding tax applied to gross rental income, significantly impacting net returns for property investors.
Tenants are legally required to deduct this 15% tax before paying rent to landlords and must remit it to tax authorities within 15 days of payment. This system places the administrative burden on tenants while ensuring consistent tax collection from rental income.
Landlords can claim a 30% lump-sum deduction for expenses if they cannot justify actual costs, or they may deduct proven actual expenses from their taxable rental income. The 30% allowance provides a standardized approach for investors who prefer simplified tax compliance.
This tax effectively reduces gross yields by approximately 1.5-2 percentage points, meaning a property generating 8% gross yield would deliver around 6-6.5% after tax considerations.
Property investors should factor this withholding tax into their investment calculations and ensure tenants understand their obligation to deduct and remit these payments.
What are the key factors influencing rental prices in Cameroon?
Location remains the primary driver of rental pricing in Cameroon, with prime urban districts commanding significant premiums over peripheral areas.
| Factor | Impact on Rental Price | Examples |
|---|---|---|
| Prime Location | +30-50% premium | Central Douala business district, Yaoundé government quarter |
| Transport Links | +15-25% premium | Near major roads, public transport hubs |
| University Proximity | +20-40% for student housing | Properties near University of Yaoundé, University of Douala |
| Building Quality | +25-40% premium | Modern construction, reliable utilities, security |
| Amenities | +10-20% premium | Generator backup, parking, air conditioning |
| Security Features | +15-30% premium | Gated compounds, 24-hour security, CCTV systems |
| Infrastructure Quality | +20-35% premium | Reliable electricity, water supply, internet connectivity |
Are there specific regulations or permits required to rent out property in Cameroon?
Standard residential rentals in Cameroon require written rental agreements detailing rent amounts, payment schedules, and tenancy conditions, though no standardized lease format is mandated.
Residential lease terms typically last one to three years before requiring conversion into formal lease agreements. Most landlords and tenants opt for one-year renewable contracts that provide flexibility while ensuring adequate tenure security.
Vacation rentals and serviced apartments require tourism licenses and must comply with hospitality standards under Ministry of Tourism oversight. These properties face stricter regulations due to their commercial nature and potential impact on local tourism infrastructure.
Landlords must provide habitable premises, respect tenant privacy rights, and follow proper legal processes for any eviction proceedings or rent increases. The dual legal system operating in Francophone and Anglophone regions can create procedural variations that landlords should understand.
Property owners should ensure compliance with local building codes and safety standards, particularly for multi-unit rental properties.
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What is the typical duration of a rental contract in Cameroon, and what are the payment terms?
Most residential rental contracts in Cameroon run for one-year terms with automatic renewal options, providing stability for both landlords and tenants.
Lease agreements can extend up to three years for standard residential properties, with longer-term arrangements requiring conversion into formal lease agreements under Cameroonian property law. Commercial and premium residential properties often favor longer-term contracts to ensure rental stability.
Advance rent payments are common practice, with landlords typically requiring three months to one full year of rent paid upfront. This advance payment system helps landlords secure cash flow while providing tenants with predictable housing costs.
Payment terms following the advance period usually operate on monthly or quarterly schedules, depending on tenant preferences and landlord requirements. Written contracts should clearly specify all payment obligations and due dates to avoid disputes.
Contract renewal negotiations typically occur 30-60 days before expiration, allowing both parties time to adjust terms or seek alternative arrangements.
How do tenants in Cameroon typically pay for rent—monthly, quarterly, or annually?
Tenant payment patterns in Cameroon vary significantly based on contract type, with most tenants paying monthly or quarterly after providing substantial upfront payments.
Monthly payments are the most common arrangement for standard residential leases, particularly in urban centers where tenants prefer predictable monthly budgeting. This payment frequency aligns with most employment income schedules and provides landlords with regular cash flow.
Quarterly payments occur frequently in premium properties and longer-term lease arrangements, offering landlords reduced administrative burden while providing tenants with less frequent payment obligations.
Annual upfront payments sometimes occur in informal rental agreements or when tenants seek to negotiate lower overall rental costs. Some landlords offer discounts for full annual prepayment, though this arrangement requires careful contract structuring.
It's something we develop in our Cameroon property pack.
What is the average occupancy rate for rental properties in cities like Douala and Yaoundé?
Long-term residential rentals in central Douala and Yaoundé achieve occupancy rates between 92% and 98%, reflecting strong demand for quality housing in prime urban locations.
Short-term vacation rentals and serviced apartments face significantly lower occupancy rates around 25-26%, requiring intensive marketing and management to achieve profitability. The short-term rental market remains challenging due to limited tourism infrastructure and competition from established hotels.
Vacancy rates tend to increase outside downtown areas, with suburban and peripheral properties experiencing 2-8% vacancy rates depending on transport links and local amenities. Properties with poor infrastructure access or security concerns may face higher vacancy challenges.
Student housing near universities maintains exceptionally high occupancy during academic periods but may experience seasonal vacancy during breaks. These properties typically achieve 95%+ occupancy during the school year but require careful management during vacation periods.
Quality properties with reliable utilities, security features, and prime locations consistently outperform market averages in occupancy metrics.
How much do property management services cost, and what do they typically include in Cameroon?
Property management services in Cameroon typically charge 8% to 15% of monthly rental income for comprehensive residential property management.
Standard management packages include rent collection, tenant screening and placement, routine property maintenance coordination, and administrative support for lease agreements. These services provide valuable support for investors who cannot personally manage their properties or live outside Cameroon.
Additional services such as major repairs, professional cleaning between tenancies, legal support for tenant disputes, and vacancy marketing may incur separate charges beyond the base management fee. Investors should clarify which services are included in the standard fee structure.
Premium management companies may charge fees toward the higher end of the range but often provide superior tenant quality, faster issue resolution, and more comprehensive reporting to property owners.
Property owners should evaluate management companies based on their track record, local market knowledge, and ability to maintain high occupancy rates rather than solely focusing on fee structures.
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.
What are the risks involved in renting property in Cameroon?
Legal complexities represent the primary risk category for rental property investors in Cameroon, particularly regarding tenant disputes and eviction procedures.
Tenant-related risks include rent payment defaults, delayed payments, property misuse, and difficulty enforcing lease terms without proper legal procedures. Eviction processes require court orders and can be time-consuming, potentially resulting in extended periods without rental income.
Property damage risks exist beyond normal wear and tear, with tenants liable for damages but legal recourse potentially slow and expensive. Comprehensive lease agreements and security deposits help mitigate these risks but cannot eliminate them entirely.
Regulatory complexity arising from dual legal systems in Francophone and Anglophone regions creates procedural variations that can complicate dispute resolution. Investors should work with local legal professionals familiar with regional differences.
Infrastructure risks include unreliable utilities, security concerns in certain areas, and potential political instability affecting property values and rental demand.
What is the expected annual property appreciation rate in Cameroon, and how does this impact rental income potential?
Urban residential properties in Douala and Yaoundé are experiencing annual appreciation rates between 3% and 7% as of September 2025, driven by urbanization and limited housing supply.
The national residential market is projected to grow approximately 5% annually through 2029, reflecting sustained demand from urban population growth and economic development. This appreciation rate provides additional returns beyond rental income for property investors.
Property appreciation enhances total investment returns by enabling rental rate increases over time and building long-term wealth through capital gains. Properties in prime locations typically experience appreciation at the higher end of the range due to land scarcity and development restrictions.
Rising property values support rental income growth potential, as landlords can justify higher rents based on increased property values and replacement costs. This dynamic helps rental income keep pace with or exceed inflation rates.
It's something we develop in our Cameroon property pack.
How does inflation in Cameroon affect rental income, and what strategies can be used to protect against inflation?
Cameroon's inflation rate ranges from 3.2% to 4.1% nationally as of 2025, with regional variations including 4.3% in Douala and approximately 4.0% in Yaoundé.
Fixed-term rental contracts can erode real rental income if inflation exceeds rental rate increases, making inflation protection strategies essential for property investors. Long-term fixed-rate leases become particularly vulnerable during periods of elevated inflation.
Annual rent escalation clauses provide the most effective protection against inflation, allowing landlords to increase rents by predetermined percentages or inflation indices. These clauses should be included in lease agreements from the initial contract signing.
Investing in central, high-demand locations offers natural inflation protection by maintaining strong rental demand and supporting regular rent increases. Properties in prime areas typically maintain pricing power even during economic uncertainty.
Shorter lease terms or renewal options enable more frequent rent adjustments, allowing landlords to respond quickly to inflation and market changes while maintaining competitive positioning.
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.
Cameroon's rental property market offers attractive investment opportunities with yields ranging from 6% to 12% annually, driven by strong urbanization and housing demand in major cities.
Success in the Cameroonian rental market requires careful attention to location selection, proper legal compliance, and effective property management to navigate the 15% withholding tax and regulatory complexities while maximizing occupancy rates and rental income.
Sources
- TheAfricanVestor - Average Rent Douala
- BambooRoutes - Average Rent Cameroon
- Numbeo - Cameroon Property Investment
- SimTrade - Cameroonian Real Estate Market
- OpenHub Digital - Real Estate Income Tax Cameroon
- Kinsmen Advocates - Tenancy Agreement Cameroon
- Trading Economics - Cameroon Inflation
- Business in Cameroon - Inflation Report 2025