Buying a property in Dakar: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Dakar's property market is included in our pack

Thinking of buying a property in Dakar? You're not alone!

Many people are captivated by Dakar's West African allure and dream of owning a modern apartment or a traditional villa in this city.

Would it be a good investment, though? Are property prices increasing in Dakar? What is the price per sqm? Is it more profitable to buy in the city center or Almadies? What are the taxes? Which place will give me the best yields?

We have the answers.

At TheAfricanvestor, we've really dug into this market. As a matter of fact, we have condensed all our findings in a pack. Get it now.

In the lines below, we'll share useful information and some practical tips.

How is the real estate market in Dakar?

Are property prices rising or falling? Let's consult the most recent data and stats.

Types of properties

In Dakar, you can find a variety of properties for sale, including apartments, houses, villas, and commercial spaces.

Apartments are typically found in multi-story buildings and offer convenient urban living, while houses and villas provide more space and privacy.

Commercial spaces include shops and offices available for purchase.

The properties vary in size, location, and amenities, catering to different preferences and budgets.

Buying or renting?

(In case you want it for yourself, not for rental purposes)

If Dakar is your city of choice, you may be pondering the buy vs. rent decision in this bustling capital of Senegal.

Obviously, it's better to buy if you're looking for an investment opportunity or a long-term living arrangement in Dakar.

To make a good decision, look at the property price-to-rent ratio. You can use this number to see how long it will take to recover the property's cost through rental earnings.

According to Numbeo, the property price-to-rent ratio in Dakar is around 12.83, which is quite low.

Consider this: the average period it takes to accumulate sufficient rental payments for purchasing a property is merely 13 years. This makes buying an attractive option

Property prices in Dakar

On average, according to the last data from Agence Nationale de la Statistique et de la Démographie (ANSD), purchasing a property in Dakar would cost you around $2,460 per square meter.

Naturally, property prices are quite spread out. A seaside property in Dakar might have a different price per square meter than a villa in Almadies. We actually give you a more detailed breakdown in our pack for buying property in Dakar and in Senegal.

To help you understand better, it is 8 times less than the property prices in the center of New York.

However, housing prices in Dakar are higher (24%) than in Cape Town.

The most expensive neighbourhoods in Dakar are probably Almadies, Fann, and Point E, while the cheapest ones are likely Guédiawaye, Pikine, and Parcelles Assainies.

Trends

First and foremost, we have to acknowledge that Senegal is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 72.1.

Don't overlook this while weighing the pros and cons of buying a property in Dakar.

If we look at more data, we can see that, according to the IMF’s forecasts, Senegal's economy is expected to soar by 33.1% in the coming 5 years, resulting in an average GDP growth rate of 6.6%.

If you intend to invest in real estate in Dakar it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Senegal, the average GDP per capita has changed by 5.8% over the last 5 years. It's a good number.

This is a strong positive signal: housing prices in Dakar might become more expensive in 2024 and later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Senegal right now.

Buying property in Dakar

Buying real estate in Dakar can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Dakar and in Senegal.

Buying process

In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.

Now, we're giving you a simplified version of the buying process.

This is the step-by-step process to purchase a property in Dakar:

1. Research property market and locations in Dakar, considering neighborhoods like Almadies and Mermoz.
2. Engage a local "Agent immobilier" (real estate agent) familiar with Dakar's regulations and property trends.
3. Verify "Titre Foncier" (land ownership certificate) and "Attestation de Propriété" (property certificate) to ensure legality.
4. Negotiate the price and terms with the seller, considering Dakar's market conditions.
5. Sign a "Promesse de Vente" (preliminary sales agreement) and deposit 10% of the property value.
6. Conduct a thorough property inspection with a qualified surveyor, considering Dakar's unique climate and terrain.
7. Finalize financing options with a local bank, taking into account specific loan terms in Senegal.
8. Obtain a "Notaire" (notary public) to draft the "Acte Authentique" (final sales contract) and check legal requirements.
9. Pay the remaining balance and cover "Frais de Mutation" (transfer taxes) and "Frais de Notaire" (notary fees).
10. Sign the "Acte Authentique" before the notary and seller, with witnesses present as per Dakar's practice.
11. Register the property transfer at the "Conservation Foncière" (land registry) to obtain a new "Titre Foncier."
12. Complete "Formalités de Publication" (publication formalities) in the official journal for public record in Dakar.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Senegal.

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Where to find a property

Discover a range of options for properties in Dakar through these websites.

• Loger-Dakar Real Estate - Loger-Dakar offers a Senegalese real estate platform focused on renting and buying houses, villas, apartments, and land, featuring classified ads.
• Habita - Habita is an international real estate agency that provides property search, buying, selling, and rental services in various countries, including Senegal.
• Expat - Explore a selection of houses for sale in Senegal on this platform, offering diverse properties in various regions of the country.
• Arkadia - Discover this real estate website showcasing properties for sale in Senegal, featuring listings for houses, apartments, and land in different locations.
• Realigro - Realigro is a real estate search engine that provides listings of homes for sale in various countries, including Senegal.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Senegal.

Which properties for which budget?

As mentioned before, the average price per sqm in Dakar is $2,460. A 1-bedroom property with 60 square meters of space would cost approximately $148,000, while a 2-bedroom with 85 square meters of space would be approximately $209,000.

However, property prices can vary because of their qualities and where they're located.

Property prices in the top areas of Dakar are commonly at a premium. A residence in Point E could run about $600,000, whereas a property in Almadies might be priced at $260,000.

Of course, certain regions are more affordable. You may discover a house in Grand Dakar for $190,000, or you might find a house in Parcelles Assainies priced at $150,000.

We give more details about property types and areas in our full pack for buying property in Senegal.

Risks and pitfalls

Here are the main pitfalls specific to buying property in Dakar, Senegal:

• Complex Land Tenure System: The dual land tenure system (formal and customary) can lead to confusion and disputes over land ownership.
• Land Grabbing Concerns: Foreign investors face risks of land grabbing due to the absence of comprehensive property rights.
• Informal Settlements: Be cautious of properties in informal settlements ('bidonvilles') lacking legal recognition and prone to demolition.
• Marabout Influence: Some properties might be influenced by religious leaders ('marabouts'), leading to potential legal and ownership issues.
• Bribery and Corruption: Instances of bribery during the property transaction process require vigilance and proper legal assistance.
• Property Inheritance Disputes: Complicated inheritance laws can result in family disputes over property rights.
• Urbanization Challenges: Rapid urbanization in Dakar may cause boundary ambiguities and conflicting property claims.
• Flooding Risks: Certain areas of Dakar are susceptible to flooding, impacting property value and structural integrity.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Senegal Property Pack

Living in Dakar

Living in Dakar is an exciting and vibrant experience, with a mix of culture, history, and modern amenities that make it an attractive destination for those looking to purchase property.

Cost of living

The cost of living in Dakar is relatively high when compared to other cities in West Africa. Prices for basic goods and services, such as food, housing, and transportation, are higher than in other parts of the region.

Here are some examples to better understand the cost of living in Dakar, Senegal:

• Rent for a one-bedroom apartment in the chic Almadies neighborhood: $800 per month.
• A meal at a local eatery with Ceebu Jen (rice and fish): $10.
• Monthly public transportation pass for Dakar Dem Dikk buses: $20.
• Utilities (electricity, water) for a small apartment in Mermoz: $60 per month.
• A bottle of local Flag beer: $2.50.
• Traditional Senegalese attire "Boubou" from a local tailor: $40.
• Car rapide fare for a short city trip: $1.
• A cup of freshly brewed "Attaya" (Senegalese tea) in a street cafe: $1.50.

Neighbourhoods

Since our goal is to provide information clearly, we've designed a summary table that outlines the various neighborhoods in Dakar. For yields, prices and rents, check our property pack.

Life in Dakar

Dakar is the economic center of Senegal, and the economy is largely reliant on foreign aid and investment. It is also a major port and trading center in the region, with a vibrant tourism sector.

What expats usually like the most in Dakar is the vibrant cultural scene, with its lively music, art, and nightlife. They also appreciate the beautiful beaches and nearby islands, offering plenty of opportunities for relaxation and exploration.

Also, you have to know that Dakar deals with coastal erosion and seasonal harmattan winds that bring in desert dust from the Sahara.

A good point for a property investor - Dakar has a mass rapid transit system called the Dakar Metro.

Access to healthcare in Dakar is generally good, with many public and private health centers available.

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Renting out in Dakar

This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.

Long-term

Tenant Profiles in Dakar

If you decide to buy and rent out to long-term tenants, you should target expatriates, students, and local entrepreneurs. Dakar is also a popular tourist destination, so you may also consider targeting short-term vacationers.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Dakar are floating around 2 or 3%. It's low. Among other things, this low performance can be explained by the limited availability of quality rental housing in Dakar, which has kept rental yields low.

In Dakar, properties located in high-demand areas such as the Almadies and Point E neighborhoods tend to give the best rental yields due to their proximity to amenities, public transport, and the beach. Additionally, properties with more affordable rents, such as those in the Mermoz and Yoff neighborhoods, may also offer good rental yields for those with a smaller budget.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Short-term

You could also decide to rent short-term to business travelers, tourists, and students visiting Dakar. Additionally, you could rent to professionals coming to the city for short-term projects or assignments.

If you decide to go with that option, look for properties in Yoff, Almadies, and Point E. These are all popular neighborhoods with high rental demand, and offer easy access to the city's main attractions.

Currently, there are approximately 5,000 active Airbnb listings in Dakar, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $55.

You have the opportunity to generate some additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Dakar can make around $400 per month. Also, the average occupancy rate is estimated at 30%.

Is it worth buying real estate in Dakar then?

Buying property in Dakar can be a smart move if you're in it for the long haul or looking for a stable investment. With a low property price-to-rent ratio and the promise of Dakar's growing economy, you have the potential for decent returns down the line.

If you plan to live in Dakar for the foreseeable future, buying property can provide stability and potentially lower living costs compared to renting. Plus, you can tap into the rental market, serving expatriates, students, and tourists, which could generate a steady income stream. And with Dakar's positive economic outlook, your property might appreciate in value over time.

However, this choice might not suit everyone. If you're only in Dakar for a short stint, renting is likely more cost-effective due to the expenses associated with buying and selling property. The property market in Dakar can also be tricky to navigate, with complex land tenure systems and potential risks like land grabbing.

Plus, the current rental yields in Dakar are relatively low at around 2-3%, which might not meet your income expectations. The high cost of living in Dakar, compared to other West African cities, could also make property ownership less justifiable if you're on a tight budget.

Ultimately, buying property in Dakar can be a wise decision for long-term investors seeking stability and growth, but it may not be the right choice for short-term stays or those looking for quick rental profits. Careful consideration of your financial situation and goals is essential before taking the plunge into Dakar's property market.

Make sure you understand the real estate market in Dakar

Don't rush into buying the wrong property in Senegal. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.