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Everything you need to know before buying real estate is included in our Cameroon Property Pack
The Cameroon property market shows resilience with steady 4-5% annual growth and strong fundamentals driven by urbanization and infrastructure investment. Despite challenges like high mortgage rates and rising construction costs, market indicators suggest continued stability rather than an imminent crash through 2025-2026.
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.
The Cameroon property market demonstrates solid fundamentals with GDP growth at 3.9-4.2% and residential real estate appreciating 3-7% annually in major cities.
While high mortgage rates (13-17%) and rising construction costs present challenges, strong rental yields (7-13% in Douala) and a 2.5 million unit housing deficit support continued demand.
| Market Indicator | Current Status (September 2025) | Outlook |
|---|---|---|
| GDP Growth | 3.9-4.2% | Positive momentum |
| Property Price Growth | 3-7% annually | Steady appreciation |
| Rental Yields (Douala) | 7-13% gross | Among Africa's highest |
| Housing Deficit | 2.5+ million units | Strong demand driver |
| Mortgage Rates | 13-17% | Challenging for buyers |
| Foreign Investment | 12% annual growth | Increasing inflows |
| Inflation Rate | 4.5% (down from 7.4%) | Stabilizing |
Fact-checked and reviewed by our local expert
Cedella Besong 🇨🇲
Co-Founder & CEO, CFB Holding
What is the current state of the Cameroon economy and how has it performed recently?
The Cameroon economy shows moderately positive momentum as of September 2025, with GDP growth rebounding to 3.9-4.2% driven by sustained infrastructure investment and improved domestic demand.
Inflation has declined significantly from 7.4% in 2024 to 4.5% in 2025, indicating improved monetary policy effectiveness. The central bank has implemented tighter policies to control price pressures, particularly for food and fuel costs.
Infrastructure improvements in power generation and port facilities are supporting economic recovery. Public and foreign direct investment continue flowing into the real estate sector, contributing to overall growth momentum. The government maintains infrastructure spending programs that benefit property development and urban planning.
Despite these positive trends, the economy still faces risks from periodic currency fluctuations and evolving government policies that could impact investment flows.
It's something we develop in our Cameroon property pack.
What is the real estate growth rate in Cameroon over the last 5 years?
Cameroon residential real estate has maintained steady growth averaging 4-5% annually over the past five years, with market forecasts projecting this trend to continue through 2029.
Property prices in major cities have appreciated 3-7% annually, with the strongest growth occurring near new infrastructure projects. Luxury and prime properties experienced even higher appreciation rates due to sustained urbanization and targeted investment in high-end developments.
The commercial real estate sector has shown similar growth patterns, particularly in Douala where business expansion and infrastructure upgrades drive demand. Office and retail properties in prime locations have outperformed the broader market.
Construction activity has expanded at 4.8% annually in 2025, supported by government infrastructure spending and private development projects. This growth rate positions Cameroon among the more stable African property markets.
How do property prices compare between Yaoundé, Douala, and Buea?
| City | Price per m² (CFA) | Monthly Rent (1BR) |
|---|---|---|
| Douala (City Center) | 1,182,883 CFA | Higher than other cities |
| Yaoundé (Top Areas) | 1,000,000-1,200,000 CFA | 91,700-117,500 CFA |
| Buea | Significantly lower | Below Douala/Yaoundé |
| Douala (US$ equivalent) | $1,851/m² | Premium market rates |
| Regional Comparison | Douala most expensive | Buea most affordable |
What is the current demand for residential and commercial properties in Cameroon?
Residential property demand remains exceptionally strong due to rapid urbanization reaching 56.5% and a national housing deficit exceeding 2.5 million units.
Rental yields in major cities are among Africa's highest, with Douala achieving 7-13% gross yields and Yaoundé delivering 6-10% gross yields. These returns attract both local and foreign investors seeking stable income streams.
Commercial property demand is increasing substantially, especially in Douala as the economic center. Business growth, infrastructure upgrades, and expanding expatriate presence drive office and retail space requirements. Grade A office vacancy rates remain moderate at 20-30% post-pandemic, but competition for quality tenants intensifies in prime locations.
The combination of demographic growth, urbanization trends, and economic development creates sustained demand across both residential and commercial segments.
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How are interest rates affecting property buyers and investors in Cameroon?
Mortgage interest rates remain significantly high in Cameroon, creating substantial barriers for property buyers and limiting speculative investment activity.
Typical mortgage rates range from 13-17% for individual borrowers, while small and medium enterprises face 11-12% rates, and large enterprises access lower 7-8% rates. The central bank benchmark sits at 4.5-5.0%, but commercial lending rates price much higher due to risk premiums.
Some financial institutions offer special social housing rates as low as 5% for qualifying projects, but these programs have limited availability and strict criteria. High borrowing costs effectively screen out marginal buyers and reduce leverage-driven speculation.
These elevated rates favor cash buyers and foreign investors with access to lower-cost capital, while constraining local buyer participation in higher-priced market segments.
What is the level of foreign investment in Cameroon's real estate sector?
Foreign direct investment in Cameroon real estate has grown approximately 12% annually since 2020, driven by the country's relative political stability and substantial unmet housing demand.
International investors can purchase freehold property but face restrictions, particularly for unserviced land or rural/strategic zones requiring ministerial approval. Leasehold arrangements up to 99 years offer more accessible alternatives for foreign buyers.
Investment inflows and remittances have increased notably, especially targeting urban developments and coastal properties in areas like Kribi. Foreign capital particularly focuses on luxury residential projects and commercial developments in Douala and Yaoundé.
The government maintains policies to attract foreign investment while protecting strategic land areas, creating a balanced framework that encourages international participation without compromising national interests.
What government policies could impact the property market?
Land ownership laws allow foreigners to own freehold property but typically require Ministry approval, while leasehold arrangements up to 99 years provide more accessible options for international buyers.
Property taxes include capital gains tax at 16.5% if sold within 5 years, VAT on new constructions, and various transfer and registration duties. The dual legal system incorporating French civil law, English common law, and customary practices creates complexity for transactions.
Foreign exchange regulations govern profit repatriation, while environmental and land use permits are required for developments. Digital land registration reforms are underway to improve transparency and reduce transaction complexity.
Government initiatives address the housing deficit through development plans and incentives for large projects. These policies generally support market growth while maintaining regulatory oversight.
It's something we develop in our Cameroon property pack.
How is land availability for urban development in key regions?
Urban land in Douala and Yaoundé is becoming increasingly scarce and expensive, driving development toward peri-urban areas that require infrastructure improvements.
Prime urban locations command premium prices due to limited supply, while developers increasingly target areas on the urban fringe where road and utility upgrades are planned or being executed. Speculation is strongest in these transitional zones benefiting from infrastructure investment.
Government infrastructure spending creates new development opportunities in previously less accessible areas. Transport improvements and utility extensions expand the viable development footprint around major cities.
Land scarcity in central urban areas contributes to price appreciation and supports property values, while peri-urban development offers more affordable entry points for both developers and end-users.
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 is the vacancy rate for commercial properties in major cities?
Vacancy rates in prime commercial and office space hover around 20-30% following the pandemic impact, but active demand persists in core areas with quality amenities and infrastructure.
Centrally located retail properties maintain robust occupancy levels, while secondary locations face increased competition for tenants. Landlords in non-prime areas increasingly offer incentives including rent-free periods and tenant improvement allowances.
Grade A office buildings in Douala and Yaoundé command premium rents and achieve better occupancy rates than older or less well-located properties. The flight to quality among commercial tenants supports premium properties while pressuring secondary assets.
New commercial developments focus on modern amenities and infrastructure to compete effectively for tenants willing to pay market rates for quality space.
How are construction costs trending and what challenges do developers face?
Construction costs continue rising significantly, with average house construction reaching 41 million CFA (US$66,000), while top-tier homes cost 90 million CFA or more.
Industrial sector and material costs increased 6.3% in early 2025, primarily due to inflation effects and currency fluctuations impacting imported materials. Some supply chain challenges persist for specialized materials and equipment.
Government infrastructure spending stimulates the construction sector while creating some material demand pressures. Annual construction growth is projected at 4.8% in 2025, indicating sustained activity despite cost pressures.
Developers increasingly focus on cost management and local material sourcing to maintain project viability. Rising costs support property price appreciation by establishing higher replacement cost floors.
How are inflation and currency fluctuations impacting the real estate market?
Inflation declined from 7.4% to 4.5% in 2024 and continues stabilizing through 2025, reducing some pressure on construction costs and property affordability.
Tighter monetary policy helps control price pressures, though the market remains sensitive to food, fuel, and currency changes that can quickly impact costs. Short-term volatility continues affecting construction material prices and project budgets.
Currency fluctuations impact imported construction materials and equipment, creating cost uncertainty for developers. Foreign investors face exchange rate considerations when repatriating profits or calculating returns in their home currencies.
The stabilizing inflation trend supports property market confidence, while remaining volatility creates planning challenges for long-term development projects.
What is the level of property speculation in Cameroon?
Property speculation exists primarily in peri-urban land markets and prime new developments benefiting from planned infrastructure investments.
Rising prices and strong rental yields attract investment interest, but speculative activity has not reached crisis levels that would threaten market stability. Most demand stems from underlying demographic and economic fundamentals rather than pure speculation.
Infrastructure development creates speculation opportunities where investors anticipate value appreciation from road improvements, utility extensions, and planned developments. This speculation generally aligns with genuine development needs.
High mortgage rates naturally limit leverage-driven speculation, while strong rental yields provide fundamental value support for investment decisions.
It's something we develop in our Cameroon 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.
The Cameroon property market demonstrates fundamental strength with consistent growth drivers including urbanization, infrastructure investment, and strong rental yields that support continued stability.
While challenges exist in the form of high mortgage rates and rising construction costs, these factors help prevent speculative excess while maintaining market discipline for sustainable long-term growth.
Sources
- World Bank - Cameroon Economic Update
- Fitch Solutions - Cameroon Growth Forecast
- Simtrade - Cameroon Real Estate Market
- TheAfricanVestor - Cameroon Price Forecasts
- Statista - Cameroon Residential Real Estate
- Numbeo - Douala vs Yaoundé Property Comparison
- Knight Frank - Africa Report 2024-25
- Trading Economics - Cameroon Interest Rates
- Yahoo Finance - Cameroon Construction Industry Report
- Unlimited Tech Projects - Construction Costs Cameroon