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
Are you considering investing in Cameroon’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Target properties near future infrastructure projects for significant value appreciation and profit maximization
Investing in properties near upcoming infrastructure projects can be a smart move because these areas often see a rise in property values.
In Cameroon, the construction industry is on the rise, with a 5.5% growth expected in 2024. This boom is fueled by investments in transport and energy infrastructure, which typically lead to higher property values. The African Development Bank is pouring funds into transportation projects, like roads connecting Cameroon to its neighbors, which are part of a government plan to expand the paved road network.
Take the Yaounde-Douala Highway project, for example. It has already shown how infrastructure can boost property values. Similarly, the Cross River Bridge project is set to improve connectivity and drive up property prices. Analysts foresee that from 2025 to 2028, the construction industry will keep growing, thanks to public and private investments, leading to further appreciation in property values near these projects.
Cameroon is also seeing significant urbanization, with more people moving to areas where infrastructure is being developed. This trend is increasing demand for housing and commercial properties, further driving up property values. The government's investment plans are expected to create jobs and stimulate business activity, which can lead to increased property values in these regions.
Moreover, the government's heavy investment in energy infrastructure is making properties nearby more appealing. This is not just about better roads; it's about creating a more connected and efficient environment that attracts businesses and residents alike.
With these developments, investing in properties near these projects could be a lucrative opportunity. As infrastructure improves, so does the potential for property value appreciation, making it a wise choice for investors looking to maximize their returns.
Sources: Business Wire, Cameroon Concord News, GlobeNewswire
2) Avoid properties in Cameroon with unclear ownership histories, as land rights disputes are common and can cause legal issues
When buying property in Cameroon, avoid those with unclear ownership histories.
In recent years, especially around 2023 and 2024, Cameroonian courts have been flooded with land disputes. These issues often stem from mismatches between the land areas people thought they were buying and what was actually surveyed. A notable example is the ongoing land restitution process with the Bakweri communities in the South-West Region, which has led to lengthy legal battles.
The land tenure system in Cameroon is notoriously complex. Many transactions lack clear and informed consent, which is crucial for avoiding disputes. This complexity is compounded by a judiciary that many perceive as corrupt and inefficient, making it even harder to resolve ownership issues.
For potential buyers, understanding these challenges is key. It's not just about finding the right property; it's about ensuring that the ownership is crystal clear. This means doing thorough research and possibly consulting with local experts who understand the intricacies of the system.
Investing in property here can be rewarding, but it requires caution. The legal landscape is tricky, and without proper guidance, you might find yourself entangled in a dispute. Always verify the ownership history and ensure all documents are in order before proceeding.
Sources: Academic.oup.com, OCHA, GAN Integrity
We made this infographic to show you how property prices in Cameroon compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Consider properties on the outskirts of Douala and Yaoundé for affordability and growth potential due to urban sprawl
Looking for a property in Cameroon? Consider the outskirts of Douala and Yaoundé, where prices are significantly lower than in the city centers.
In Douala, for instance, a 1-bedroom apartment in the city center costs about 521,538 CFA, while in the outskirts, it's around 339,564 CFA. This price difference makes the outskirts more attractive for budget-conscious buyers.
Urbanization is booming in these cities, with demand for housing outpacing supply. This means the outskirts are likely to see increased development and investment, making them a smart choice for future growth.
The Ministry of Housing and Urban Development is actively involved in projects that focus on expanding urban areas. This involvement suggests that the outskirts could soon become hotspots for new investments and development.
Looking ahead to 2025, real estate trends are shifting towards tech-smart, energy-efficient apartments, larger suburban homes, and properties with outdoor spaces. This shift indicates a growing demand for suburban properties, further boosting their potential.
Sources: Numbeo, Expertise France, African Property Magazine
4) Ensure all transactions in Cameroon involve a notary, as it’s a legal requirement to avoid common mistakes
In Cameroon, having a notary present during real estate transactions is a legal must.
This requirement, rooted in Section 8 of Ordinance No.74/1 from July 6, 1974, ensures that property deeds are valid. Without a notary, any property-related documents could be considered null and void, which is a risk no buyer or seller wants to take.
Notaries are essential in preventing ownership disputes. They verify that all parties involved have the legal right to participate in the transaction and confirm that the seller truly owns the property. This verification process helps avoid future legal headaches.
Another critical role of notaries is reducing the risk of property fraud. The real estate sector in Cameroon is vulnerable to money laundering, as noted by the National Financial Investigation Agency. Notaries ensure proper documentation and verification, acting as a safeguard against fraudulent activities.
Involving a notary is not just about following the law; it's about protecting your investment. They provide an extra layer of security by ensuring that all transactions are conducted transparently and legally, which is crucial in a market susceptible to fraud.
For anyone considering buying property in Cameroon, understanding the importance of a notary can save you from potential pitfalls. Notaries are your allies in navigating the complexities of real estate transactions, ensuring everything is above board.
Sources: Kima and Partners, Dayspring Law, Paradigm Press
5) Research local laws in Cameroon, as some areas restrict foreign ownership
Buying property in another country can be tricky, especially with unexpected restrictions on foreign ownership.
Take Cameroon, for example. While foreigners can purchase buildings, owning land outright is a different story. Instead of full ownership, they often have to settle for leasehold arrangements. This is due to Cameroon's land laws, which require land to be registered and titled to be considered private property.
Adding to the complexity, the government has suspended land sales in several departments to curb illegal transactions. This means that even if you find a property you love, you might face hurdles if you haven't done your research.
These regional differences in property laws can be a real eye-opener for potential buyers. It's crucial to understand that local regulations can vary significantly from what you're used to at home.
So, before you dive into the property market, make sure to thoroughly investigate the local laws and regulations. This will help you avoid any unpleasant surprises down the road.
Remember, what seems straightforward in your home country might be more complex abroad. Always be prepared and informed.
Sources: Business in Cameroon, LandLinks
Don't buy the wrong property, in the wrong area of Cameroon
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Partner with a reputable local agent in Cameroon to navigate market nuances and legal complexities
In Cameroon, partnering with a reputable local real estate agent can give you a significant edge in the property market.
These agents are adept at handling the ongoing urbanization and economic growth that are driving up property prices. Their expertise ensures they can navigate these changes effectively, leading to more successful transactions. Local agents have a knack for understanding the market's pulse, which is crucial in a rapidly evolving environment.
Cameroon's property laws can be quite complex, and local agents are well-versed in these regulations. This knowledge helps them mitigate potential legal issues, making the transaction process smoother. For foreign investors, this is particularly beneficial, as the legal landscape can be challenging to navigate without local expertise.
Moreover, local agents offer valuable insights into neighborhood trends and property values. They can guide you on the best neighborhoods to invest in, based on current market trends and future developments. This insider knowledge ensures you make informed investment decisions, maximizing your returns.
Understanding the nuances of the market is key, and local agents are equipped with the necessary tools and knowledge. They can provide advice tailored to your needs, helping you make the most of your investment. Their ability to foresee market shifts and identify opportunities is invaluable.
Sources: The Africanvestor, AFSIC
7) Be wary of "land grabbing" in Cameroon; ensure thorough due diligence to avoid buying land from unauthorized sellers
In Cameroon, land disputes and fraudulent sales have become increasingly common in recent years.
One high-profile case involved Herakles Farms, a company that ran into legal trouble due to unauthorized activities and making false promises. This serves as a stark reminder to be cautious when dealing with land transactions in the country.
The process of land registration in Cameroon is notoriously complex. Many landowners depend on informal documents like sale agreements, which do not provide definitive proof of ownership. This often leads to disputes and court cases, making it essential to conduct thorough due diligence before buying land.
Media reports have highlighted the prevalence of land fraud, with numerous suspicious transactions involving large sums of money. This environment of corruption and fear has hindered investigations, emphasizing the need for caution and careful verification of land ownership.
In some cases, individuals engage in "land grabbing," selling land they do not legally own. This makes it crucial to verify the legitimacy of the seller and the land title before proceeding with any purchase.
Given these challenges, it's advisable to work with local experts who understand the intricacies of Cameroon's land laws. They can help you navigate the system and avoid potential pitfalls in your property investment journey.
Sources: Oakland Institute Report, Study on Land Registration in Cameroon, ZAM Magazine Article
8) Understand Cameroon’s customary land tenure systems, as buying land requires knowledge of local customs and community agreements
Buying land in Cameroon is a unique experience due to its customary land tenure systems.
These systems have been around for centuries and are deeply rooted in the country's history, influenced by its colonial past, which introduced individual land rights. This mix of customary and statutory laws can make things a bit tricky. Most rural Cameroonians hold land under customary law, but this isn't always recognized by statutory law. This means that many people might be seen as squatters on their own land, which can lead to insecurity and disputes.
For example, the Chad-Cameroon oil pipeline project highlighted tensions between customary and statutory land rights when traditional landowners were evicted. Customary land rights are often not recognized or protected under statutory law, making them vulnerable to being sold without compensation. This can lead to conflicts within communities, especially affecting women and marginalized groups.
The government has recognized these issues and aims to clarify and strengthen local land rights to ensure secure tenure for everyone. Understanding local customs and community agreements is crucial when buying land in Cameroon. It's not just about the legal paperwork; it's about respecting and navigating the traditional systems that have governed land ownership for generations.
Insider tip: Engage with local chiefs and community leaders, as they play a significant role in land transactions. They can provide valuable insights and help you understand the nuances of customary land tenure. This approach not only smooths the process but also builds trust within the community.
Remember, buying land in Cameroon is not just a transaction; it's about becoming part of a community with its own set of rules and traditions. Embrace the journey, and you'll find it a rewarding experience.
Sources: Land Links, Rainforest Foundation UK, IIED
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cameroon. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Consider investing in eco-friendly and sustainable housing, as it’s gaining popularity among locals and expatriates
Eco-friendly and sustainable housing is gaining popularity in Cameroon, attracting both locals and expatriates.
People are becoming more aware of environmental issues and the perks of sustainable living, which is driving this trend. They're keen on reducing their carbon footprint, leading to a rising demand for green building materials and technologies. Since the Green Building Program kicked off in 2009, Cameroon has embraced green construction practices. Notable projects like the Yaoundé Central Hospital and the ECO-CARREFOUR shopping centre have set the bar by using eco-friendly materials and energy-efficient technologies.
These projects not only boost energy efficiency but also cut down on waste, paving the way for future developments. The government is on board too, offering support through initiatives like ESG goals and LEED certification, which align with global trends. Consumer preferences are shifting as well, with many Cameroonians and expatriates willing to pay more for sustainable housing. This is especially true among younger generations who are more invested in sustainability.
Media coverage and social media are playing a big role in spreading the word about the benefits of sustainable housing. This buzz is encouraging more people to adopt eco-friendly practices. The growing trend of eco-friendly and sustainable housing is becoming increasingly popular among both locals and expatriates. Projects like the Yaoundé Central Hospital and the ECO-CARREFOUR shopping centre have successfully incorporated eco-friendly materials and energy-efficient technologies.
These projects not only enhance energy efficiency but also reduce waste, setting a precedent for future developments. The government's support through initiatives like ESG goals and LEED certification further incentivizes sustainable building practices, aligning with global trends. Consumer preferences are also shifting towards eco-friendly homes. Surveys indicate that a significant percentage of Cameroonians and expatriates are willing to pay more for sustainable housing.
This trend is particularly strong among younger generations who are more invested in sustainability. Additionally, media coverage and social media discussions are raising awareness about the benefits of sustainable housing, encouraging more people to adopt eco-friendly practices. Consumer preferences are also shifting towards eco-friendly homes.
Sources: Constructive Voices, The Madrona Group, IJISRT
10) Consider city commercial real estate for lucrative investment opportunities, as demand is growing
In Cameroon, urbanization is on the rise, especially in 2023 and 2024.
As more people flock to cities, the demand for commercial real estate is booming. Businesses are eager to tap into this growing urban market, making cities like Douala and Yaoundé hotspots for investment. This trend is particularly exciting for those looking to invest in commercial properties, as the need for office spaces and facilities is increasing.
Even though there was a slight dip in foreign direct investment in 2023, foreign companies remain interested in expanding their operations in Cameroonian cities. This ongoing interest suggests that the commercial real estate market will continue to thrive, as these companies will require spaces to set up shop.
Government efforts to improve infrastructure, such as enhancing the Port of Douala, are making urban areas even more attractive for businesses. Better infrastructure means smoother business operations, which naturally boosts the demand for commercial properties. This is a key factor for potential investors to consider.
In bustling cities like Douala and Yaoundé, there's been a noticeable increase in business activities. More new businesses are being registered, which means a higher demand for commercial spaces. This trend is a clear indicator of the vibrant economic environment in these urban centers.
Sources: Statista, Trading Economics, World Bank Documents
11) Consider the less regulated real estate market in Cameroon, as it presents both opportunities and risks for investors
The real estate market in Cameroon is less regulated than in many Western countries, which can offer both opportunities and risks for investors.
In 2023 and 2024, the regulatory environment in Cameroon was marked by inconsistent enforcement and oversight. Despite efforts to introduce fees for real estate professionals to boost non-tax revenues and combat corruption, the market remains unpredictable. This inconsistency can be a double-edged sword, offering both potential gains and pitfalls for investors.
Informal property sales are common, with many transactions happening without official documentation. This lack of formalization can lead to disputes and legal challenges, especially in bustling cities like Douala and Yaoundé. These cities face a significant housing shortage, and without a centralized property registry, tracking ownership and transactions becomes tricky, increasing the risk of fraudulent deals.
Investors often encounter bureaucratic hurdles, such as unclear property titles and inconsistent regulatory enforcement. The variability in property valuation methods and limited access to reliable market data make it tough for investors to make informed decisions. However, the rapid urbanization in cities like Douala and Yaoundé creates speculative opportunities, attracting foreign investors who often partner with local experts to mitigate risks.
Despite these challenges, the allure of Cameroon's real estate market lies in its potential for high returns. The country's urban areas are expanding quickly, and this growth is drawing attention from savvy investors. By partnering with local experts, investors can navigate the complexities and capitalize on the market's potential.
For those willing to take the plunge, understanding the local landscape is crucial. The lack of regulation can be daunting, but it also means there's room for negotiation and creative deals. Investors who do their homework and build strong local connections can find lucrative opportunities in this dynamic market.
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12) Consider offering construction services or materials, as locals often prefer buying land to build their own homes
In Cameroon, locals often prefer to buy land and build their own homes, creating unique opportunities in the property market.
With a significant housing deficit, the government is pushing to construct one million homes to accommodate the growing urban population. This has been a trend over the past few years, especially in 2023 and 2024, as the demand for housing continues to rise.
The construction industry is booming, with an expected annual growth rate of 5.8% from 2022 to 2025. This surge is fueled by national development strategies and increased investments in infrastructure, energy, and industrial sectors.
In 2024, the industry saw a real-term growth of 5.5%, underscoring the increasing demand for construction services and materials. This growth is a testament to the vibrant market for construction-related businesses.
Cameroonians often opt for custom-built homes using local materials, aligning with government policies that promote sustainable construction practices. This preference has created a strong market for construction materials, focusing on sustainable and cost-effective options like cement, bricks, steel, and glass.
The availability and pricing of these materials are crucial factors driving demand, making it a lucrative opportunity for businesses in the construction sector. Understanding these dynamics can help you tap into this growing market.
Sources: Business Wire, 6Wresearch, Development Minerals
13) Expect a lengthy and bureaucratic process for land titles in Cameroon, so patience and persistence are essential
Buying property in Cameroon means navigating a complex and lengthy process to obtain a land title.
Since 2005, the government has tried to make things easier, but the process still involves many steps and departments. Local authorities say just the survey can take 1-2 months, and the whole thing might stretch to 6 months. Real estate agents often mention the bureaucratic hurdles, and property lawyers stress the importance of buying from someone with a legitimate title, which can slow things down even more.
Buyers often share stories of the challenges they face, like dealing with litigation if they don't follow procedures correctly. These experiences highlight the need for patience and persistence, as the process can be frustrating and time-consuming.
It's not uncommon for buyers to encounter unexpected delays. Anecdotal evidence suggests that even with all the right paperwork, unexpected issues can arise, adding to the wait time.
For those considering a purchase, it's crucial to be prepared for a potentially long journey. The process requires careful attention to detail and a willingness to navigate through the red tape.
Sources: Gates Open Research, DW, IIED
14) Factor in varying property taxes by location and type when calculating investment costs
When buying property, remember that property taxes can vary greatly based on location and property type.
In Cameroon, for example, the government sets property taxes at 0.1% of the property's assessed value annually. But don't forget about other costs like VAT and Transfer Tax when buying or selling. These additional taxes can add up, so it's wise to budget for them.
Location plays a big role in how much you'll pay. In cities like Douala and Yaoundé, there's a clear difference in property prices. For instance, the average monthly rent for a one-bedroom apartment in Douala is higher than in Yaoundé, suggesting that property taxes might be steeper in Douala due to higher property values.
Beyond city limits, whether a property is in an urban or rural area also impacts taxes. Urban areas like Douala generally have higher property values and thus higher taxes compared to rural regions. This is something to keep in mind if you're considering a countryside investment.
The type of property matters too. Commercial properties often have different tax rates than residential ones. While specific data on these differences isn't always available, it's important to know that commercial properties might incur higher taxes due to their potential for generating income.
Sources: Numbeo, Business in Cameroon
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.