Authored by the expert who managed and guided the team behind the Senegal Property Pack
Yes, the analysis of Dakar's property market is included in our pack
Property prices in Dakar are experiencing steady upward momentum as we reach mid-2025.
The capital city's real estate market continues to attract both local and international investors, with annual price increases ranging from 3% to 7% across different neighborhoods and property types.If you want to go deeper, you can check our pack of documents related to the real estate market in Senegal, based on reliable facts and data, not opinions or rumors.
Dakar's residential property market is experiencing consistent price growth, with apartments averaging 1,108,167 CFA francs per square meter as of June 2025, representing a 23% increase over the past five years.
Luxury districts like Almadies are leading the surge with prices reaching up to 5.5 million CFA/m², while the overall market shows no signs of a speculative bubble despite growing affordability concerns.
| Property Type | Current Price Range (CFA/m²) | 5-Year Growth Rate |
|---|---|---|
| Luxury Apartments (Almadies) | 3,500,000 - 5,500,000 | 20% |
| Standard Apartments | 1,108,167 (average) | 23% |
| Houses | 593,333 (median) | 15-18% |
| Affordable Housing (Pikine) | 500,000 - 1,000,000 | 8-10% |
| Commercial Spaces | 1,200,000 - 2,500,000 | 25-30% |
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.
What are the current average property prices per square meter in Dakar as of June 2025?
Property prices in Dakar vary significantly depending on the type and location, with apartments currently averaging 1,108,167 CFA francs per square meter.
In the luxury district of Almadies, prices have reached extraordinary levels, ranging from 3.5 million to 5.5 million CFA per square meter, making it the most expensive area in West Africa outside of Lagos. Standard apartments across the city show considerable variation based on size, with 2-room units averaging 948,767 CFA/m² while 5-room apartments command premium prices of 1,528,878 CFA/m².
Houses in Dakar present a more affordable alternative, with median prices around 593,333 CFA per square meter, though this figure masks significant disparities between neighborhoods. The rental market mirrors these trends, with one-bedroom apartments in the city center demanding approximately 521,667 CFA per month, while three-bedroom units cost around 1,064,000 CFA monthly.
For international buyers converting to USD, these prices translate to approximately $1,800 per square meter for standard apartments, positioning Dakar among the more expensive African capitals. The price differential between luxury and affordable districts can be as much as 11-fold, reflecting the city's stark economic divisions.
It's something we develop in our Senegal property pack.
How much have residential property prices increased in Dakar over the past 12 months?
Dakar's residential property market has maintained its upward trajectory with prices increasing between 5% and 7% over the past year.
The annual appreciation rate has been remarkably consistent, with apartments showing the strongest performance at the upper end of this range. Luxury properties in coastal areas have outpaced the general market, recording gains of up to 8% in premium locations like Almadies and Ngor, driven by sustained expatriate demand and limited new supply.
This growth rate significantly exceeds inflation, making real estate one of the few asset classes in Senegal providing positive real returns. The steady appreciation reflects fundamental market dynamics rather than speculative activity, with demand consistently outstripping supply across most market segments.
Foreign investment has played a crucial role in sustaining these price increases, particularly from the Senegalese diaspora who view Dakar property as both a lifestyle choice and a hedge against currency fluctuations. The market has shown remarkable resilience despite global economic uncertainties, maintaining its growth momentum throughout the first half of 2025.
Compared to the volatile price swings seen in some emerging markets, Dakar's measured growth suggests a maturing market with strong underlying fundamentals.
Which Dakar neighborhoods are experiencing the fastest property price growth in 2025?
Almadies continues to lead Dakar's property price surge, with values climbing at nearly double the city average.
This exclusive coastal district has recorded a remarkable 20% price increase over the past five years, with acceleration particularly notable in 2024-2025. The area's appeal to international executives, diplomats, and wealthy locals has created a self-reinforcing cycle of development and appreciation, with new luxury projects commanding ever-higher prices.
| Neighborhood | Price Range (CFA/m²) | Annual Growth Rate | Key Growth Drivers |
|---|---|---|---|
| Almadies | 3.5M - 5.5M | 8-10% | Luxury developments, expat demand, beachfront location |
| Ngor | 2M - 3M | 7-9% | Heritage renovations, limited supply, artistic community |
| Mermoz | 1.5M - 2M | 6-8% | Gentrification, new transport links, young professionals |
| Dakar Plateau | 1.1M - 1.5M | 5-7% | Business district proximity, mixed-use developments |
| Sacré-Cœur | 1M - 1.4M | 5-6% | Family-friendly, good schools, established infrastructure |
| Point E | 900K - 1.3M | 4-6% | University proximity, rental demand, urban renewal |
| Pikine | 500K - 1M | 3-4% | Affordable housing, population growth, transport improvements |
Ngor has emerged as a surprise performer, with its unique blend of traditional architecture and modern renovations attracting both artists and affluent buyers seeking character properties. The limited supply of developable land in this historic fishing village has created scarcity value, pushing prices up faster than many predicted.
Mermoz represents the classic gentrification story, transforming from a middle-class neighborhood into a sought-after district for young professionals and entrepreneurs. The completion of new transport infrastructure has improved connectivity to the business district, accelerating the area's transition and driving property values higher.
What types of properties are seeing the biggest price increases in Dakar?
Luxury apartments and villas in prime coastal locations are experiencing the most dramatic price appreciation in Dakar's property market.
These high-end properties, particularly those with ocean views or in gated communities, have seen values surge by 25-30% over the past three years. The demand is primarily driven by expatriate professionals, returning diaspora members, and wealthy local buyers seeking secure, modern living spaces with international-standard amenities.
Commercial properties represent another hot segment, with prime retail and office spaces in business districts commanding premium prices. The growth of Dakar as a regional business hub has created strong demand for quality commercial real estate, with annual appreciation rates exceeding 10% in key locations.
Modern apartments with amenities like gyms, swimming pools, and 24-hour security are significantly outperforming older properties without such features. Buyers are willing to pay 30-40% premiums for properties in well-managed complexes with backup power generation and water storage facilities, addressing Dakar's infrastructure challenges.
Interestingly, land parcels in developing areas on the city's periphery have also shown strong appreciation, as developers scramble to secure sites for future projects. Raw land prices in areas earmarked for infrastructure development have doubled in some cases over the past five years.
Where will Dakar property prices likely be by the end of 2026?
Based on current market dynamics, Dakar property prices are projected to increase by 6-8% by the end of 2026.
This forecast assumes continuation of current economic policies, steady foreign investment flows, and ongoing infrastructure improvements. The Dakar residential market's fundamentals remain strong, with population growth of 3.5% annually creating constant demand pressure against limited new supply, particularly in established neighborhoods.
Luxury properties in premium districts like Almadies and Ngor could see even higher appreciation, potentially reaching 10-12% cumulative growth by end-2026. These areas benefit from finite supply, international demand, and ongoing quality improvements that justify premium pricing.
The completion of major infrastructure projects, including improvements to the Blaise Diagne International Airport access roads and the expansion of the public transport network, should unlock value in previously less accessible areas. Neighborhoods along new transport corridors could experience above-average appreciation as connectivity improves.
However, affordability constraints may moderate growth in the middle and lower market segments, with prices likely to increase more in line with general inflation. This divergence between luxury and affordable segments is expected to widen, creating a increasingly bifurcated market.
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How has Senegal's 2024 presidential transition affected Dakar's property market?
The peaceful presidential transition in 2024 has reinforced investor confidence, contributing to sustained property price growth in Dakar.
Political stability has long been one of Senegal's key advantages in attracting foreign investment, and the smooth democratic transfer of power has maintained this reputation. International investors, particularly from Europe and North America, have continued their property acquisitions without the hesitation often seen during political transitions in other African markets.
The new administration's commitment to infrastructure development and economic modernization has actually accelerated certain real estate trends. Announced plans for new business districts and residential zones have sparked speculative interest in areas likely to benefit from government investment, pushing up land prices in strategic locations.
Foreign direct investment in real estate has remained robust, with several major development projects proceeding as planned despite the change in government. The continuity in economic policy has been particularly important for long-term investors who value predictability in their investment environment.
Market data shows no significant volatility during the transition period, with transaction volumes maintaining their upward trajectory and price growth continuing at historical rates. This stability contrasts sharply with property markets in some neighboring countries that have experienced disruption during political changes.
What is the current state of mortgage rates and affordability in Dakar?
Mortgage accessibility remains a significant challenge in Dakar, with interest rates currently ranging from 6.5% to 8.5% for qualified borrowers.
These rates, combined with strict lending criteria requiring down payments of 20-30%, have priced many middle-income earners out of the property market. Banks typically require proof of stable employment, with loan terms rarely exceeding 15-20 years, making monthly payments prohibitively high for average properties.
The affordability crisis has deepened in 2025, with over 40% of Dakar residents now spending more than 30% of their income on housing costs. This figure rises to over 50% for renters in prime areas, creating significant financial stress for households trying to save for property purchases.
Inflation running ahead of wage growth has further eroded purchasing power, with the average time needed to save for a down payment extending to 8-10 years for middle-income earners. This has created a vicious cycle where rising rents make it increasingly difficult to accumulate savings for property purchases.
Alternative financing mechanisms, including rent-to-own schemes and Islamic finance options, are beginning to emerge but remain limited in scope. Government initiatives to support affordable housing have yet to significantly impact the market, leaving most buyers dependent on traditional banking products.
Which factors are primarily driving Dakar's property price increases?
Rapid urbanization stands as the primary driver, with Dakar's population growing by approximately 3.5% annually.
This demographic pressure translates to roughly 150,000 new residents each year seeking housing in an already constrained market. The city's role as Senegal's economic hub attracts internal migrants from rural areas and other cities, creating constant demand for both rental and purchase properties across all market segments.
- Foreign Investment: Expatriate professionals and diaspora Senegalese contribute an estimated 30-40% of luxury property purchases, bringing hard currency and pushing up prices in premium neighborhoods
- Infrastructure Development: Major projects including the new Diamniadio urban center, improved airport connectivity, and the regional express train have increased property values along development corridors by 15-25%
- Supply Constraints: Complex land ownership laws, lengthy approval processes, and limited developable land within the city create artificial scarcity, with new construction failing to meet annual demand by an estimated 20,000 units
- Speculation: Land banking by wealthy individuals and companies has removed significant parcels from the market, creating artificial scarcity and driving up prices for remaining available properties
- Economic Growth: Senegal's GDP growth of 5-6% annually has created a expanding middle class with increasing purchasing power, particularly in the technology and services sectors
Transaction costs averaging 10-15% of property value, including registration fees, notary costs, and taxes, also contribute to higher prices as sellers factor these expenses into their asking prices.
We made this infographic to show you how property prices in Senegal 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.
Is Dakar experiencing a property bubble or sustainable growth?
Current market indicators suggest Dakar is experiencing sustainable growth rather than a speculative bubble.
Annual price increases of 3-7% align with economic fundamentals and remain well below the double-digit growth rates typically associated with property bubbles. The demand driving these increases stems from genuine housing needs rather than speculative investment, with most purchases intended for owner-occupation or long-term rental income.
The chronic undersupply of housing, with annual construction falling short of demand by approximately 20,000 units, provides a structural support for prices. Unlike bubble markets characterized by oversupply and vacant properties, Dakar faces the opposite problem with occupancy rates exceeding 95% in most neighborhoods.
Lending practices remain conservative, with banks requiring substantial down payments and proof of income, preventing the excessive leverage that often inflates property bubbles. The absence of complex financial instruments and limited mortgage securitization further reduces systemic risk.
However, the luxury segment in areas like Almadies shows some signs of overheating, with price-to-income ratios reaching levels that may not be sustainable if expatriate demand weakens. This represents a localized risk rather than a market-wide concern, with the broader market supported by fundamental supply-demand imbalances.
How do current Dakar property prices compare to five years ago?
Dakar property prices have increased by an average of 23% over the past five years, with significant variation across neighborhoods and property types.
The most dramatic appreciation has occurred in luxury districts, where properties in Almadies have gained 20% in value, transforming from already-expensive to truly exclusive price points. A property that cost 2.9 million CFA per square meter in 2020 now commands 3.5-4 million CFA, representing substantial wealth creation for early investors.
Standard apartments have shown steady appreciation, with the city-wide average rising from approximately 900,000 CFA/m² in 2020 to 1,108,167 CFA/m² today. This 23% increase significantly exceeds inflation, providing real returns for property owners despite the economic challenges of the period.
The rental market has mirrored these trends, with three-bedroom apartment rents increasing by approximately 25-30% over five years. This rental growth has maintained investment yields despite higher purchase prices, supporting continued investor interest in the market.
Perhaps most significantly, the gap between premium and affordable areas has widened considerably. While luxury properties surged ahead, affordable neighborhoods like Pikine showed more modest gains of 8-10%, reflecting the constraints on lower-income buyers' purchasing power.
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How does Dakar's property market compare to other major West African cities?
Dakar ranks as the third most expensive property market in West Africa, behind Lagos and Abidjan but ahead of Accra and other regional capitals.
With average land prices of $273 per square meter, Dakar costs significantly less than Lagos ($765) or Abidjan ($601), but commands premium prices compared to most other West African cities. This positioning reflects Senegal's political stability, economic growth, and attractiveness to international investors.
| City | Land Price per m² (USD) | Prime 3-Bed Annual Rent (USD) | Market Characteristics |
|---|---|---|---|
| Lagos | $765 | $32,200 | Largest market, high volatility, rapid growth |
| Abidjan | $601 | $27,429 | Strong growth, French investment, expanding middle class |
| Dakar | $273 | $26,200 | Stable growth, political stability, diaspora investment |
| Accra | $180-220 | $17,515 | Moderate growth, dollarized market, expat demand |
| Freetown | $150-200 | $26,200 | Emerging market, high rental yields, limited stock |
| Bamako | $100-150 | $12,000 | Lower prices, security concerns, limited foreign investment |
| Conakry | $120-180 | $15,000 | Volatile market, infrastructure challenges, mining influence |
Dakar's rental yields remain competitive, with prime properties generating returns comparable to those in Abidjan and surprisingly close to much more expensive Lagos. This suggests Dakar offers better value for buy-to-let investors seeking stable returns without Lagos's extreme price volatility.
The relative stability of Dakar's market compared to Lagos's boom-bust cycles attracts risk-averse investors, while its higher prices compared to Accra reflect superior infrastructure and a more developed financial system. Dakar's unique position as a francophone hub also gives it advantages in attracting investment from French-speaking countries.
What property market forecast can we expect for Dakar through 2030?
Long-term projections suggest Dakar property prices could increase by 30-50% cumulatively through 2030, driven by continued urbanization and economic development.
The city's population is expected to exceed 5 million by 2030, creating unprecedented demand for housing across all market segments. This demographic pressure, combined with Senegal's ambitious infrastructure development plans, should support steady price appreciation averaging 5-7% annually.
Major projects including the Diamniadio new city development, expanded port facilities, and improved regional connectivity will create new growth poles, potentially shifting value from traditional prime areas to emerging districts. Properties along new transport corridors and near planned business districts could see appreciation exceeding the market average.
Climate change considerations are beginning to influence long-term values, with coastal properties facing increased scrutiny despite their current premium status. Inland areas with good elevation and drainage may become relatively more valuable as environmental concerns grow, potentially reshaping Dakar's traditional property hierarchy.
The emergence of Dakar as a regional technology and services hub should support continued demand for quality residential properties. However, affordability constraints may lead to increased government intervention in the housing market, potentially including rent controls or mandatory affordable housing quotas that could moderate price growth in some segments.
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.
Based on comprehensive market analysis, Dakar property prices are definitively going up - the answer is "Yes".
The Dakar residential property market shows clear signs of sustained growth, with prices increasing 5-7% annually and luxury segments performing even stronger at 8-10% appreciation. This upward trajectory is supported by fundamental factors including rapid urbanization, chronic undersupply, robust foreign investment, and ongoing infrastructure improvements that show no signs of abating through 2026 and beyond.
Sources
- Properstar Senegal House Prices
- The African Investor - Senegal Real Estate Market Analysis
- Numbeo Property Investment in Dakar
- The African Investor - Dakar Price Forecasts
- Statista Real Estate Outlook Senegal
- Housing Finance Africa - Senegal Country Profile
- This Day Live - West Africa Property Market Report
- BTI Project - Senegal Country Report
- Knight Frank Africa Report 2024-25
- Jiwall - Real Estate in Senegal Price Analysis