Is 2025 a good time to buy real estate in Gabon?

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

Are you considering buying real estate in the land of Rainforests? Are you wondering if now is a good time to make a move?

Market timing is a topic where everyone has their own ideas. Your Gabonese friend may suggest that it's currently a good time to buy property, but your business partner residing in Libreville might advise waiting for better opportunities.

At TheAfricanvestor, when we create articles or update our pack of documents related to the real estate market in Gabon, we rely on reliable data and statistics instead of personal opinions or rumors when we work.

We have carefully studied official reports and statistics from government websites, and we now have a trustworthy database with important information. Here's what we discovered, which can help you decide if it's a good idea to purchase real estate in Gabon.

We hope you find this helpful!

How is the property market in Gabon now?

Gabon is, nowadays, a relatively stable country

Neutral

Stability should be the first thing you look at when you want to invest in real estate because it attracts sustainable development and investor confidence. It is an information you need as a foreigner looking to buy real estate in Gabon.

Currently, Gabon is somewhat stable as a country. The last Fragile State Index reported for this country is 70.2, which is a decent number.

Gabon is relatively stable today due to its significant oil revenues, which have allowed the government to maintain economic stability and invest in infrastructure and social programs, thereby reducing potential sources of unrest. Additionally, the country has experienced a relatively peaceful political environment under the long-standing rule of the Bongo family, which has maintained power through a combination of political alliances and control over state resources.

We should now evaluate more data to see if the timing is right to buy property in this country.

Gabon is on track for significant expansion

Positive

Second thing to do before buying a property: make sure the country's economy is thriving.

According to the IMF's estimations, Gabon is set to conclude 2024 with a growth rate of 2.9%, which affirms the country's positive direction. If we take 2025, we're talking 2.7%.

Besides that, the economy will keep growing since Gabon's economy is expected to increase by 12.2% during the next 5 years, resulting in an average GDP growth rate of 2.4%.

The expected sustainable growth rate in Gabon indicates a stable and improving economy, which can lead to increased demand for real estate as more people and businesses seek properties. This growth can drive property values up, offering potential investors the opportunity for good returns on their investments.

Nevertheless, there are other indicators to watch.

Gabon's population is growing but getting poorer

Negative

When contemplating real estate acquisitions, population growth and GDP per capita warrant careful scrutiny because:

• a growing population means more people needing homes
• a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)

In Gabon, the average GDP per capita has changed by -2.1% over the last 5 years. It is a concerning and unsettling statistic. However, the Gabonese population is growing (+16% in 5 years).

You'll get weak rental yields in Gabon

Neutral

Our attention will now be directed towards the rental yield.

It represents the annual rental income generated by a property divided by its purchase price or market value. For instance, if a property in Gabon is purchased for 100,000,000 XAF and generates 5,000,000 XAF in annual rental income, the rental yield would be 5%.

According to Numbeo, rental properties in Gabon offer gross rental yields ranging from 0.4% and 3.1%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Gabon.

It means that your ability to generate substantial returns from a property investment may be limited.

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

In Gabon, inflation is anticipated to be minimal

Neutral

Simply put, inflation is the erosion of purchasing power.

It's when your customary bowl of maboké costs 8,000 Central African CFA francs instead of 7,000 Central African CFA francs a couple of years ago.

If you're contemplating investing in a property, high inflation can offer several advantages:

• Property values have a tendency to increase over time, potentially leading to capital appreciation.
• Inflation can result in higher rental rates, thereby increasing the cash flow from the property.
• Inflation reduces the real value of debt, making mortgage payments more affordable.
• Real estate can act as a hedge against inflation, effectively preserving the value of the investment.
• Diversifying into real estate provides stability during inflationary periods.

According to the IMF's estimations, the inflation rate in Gabon will increase by 1.0% over the next 5 years, with an average annual increase of 0.2%.

This data is telling us that Gabon is expected to have near-zero inflation then. Prices won't rise and then your property investment may not appreciate.

Is it a good time to buy real estate in Gabon then?

Now it's time to draw our conclusions.

Gabon is currently enjoying a period of relative stability, which is a crucial factor when considering property investment. A stable political and social environment often translates to a more predictable real estate market, reducing the risks associated with property investments. This stability can provide peace of mind for investors looking to enter the market, knowing that their investments are less likely to be affected by sudden upheavals or drastic policy changes.

Moreover, Gabon's economy is on an upward trajectory, with an expected growth of 12.2% over the next five years, averaging a GDP growth rate of 2.4% annually. This economic growth is a positive indicator for the real estate market, as it suggests an increasing demand for properties. As the economy expands, more people and businesses will likely seek real estate, driving up property values and offering investors the potential for significant returns.

While Gabon's population is growing, there is a concern about the increasing poverty levels. However, this demographic trend can still present opportunities for property investors. As the population grows, the demand for affordable housing and rental properties may increase, providing a steady income stream for those investing in rental properties. According to Numbeo, rental yields in Gabon range from 0.4% to 3.1%, which, while modest, can still offer a reliable return, especially in a stable and growing economy.

Inflation in Gabon is anticipated to remain minimal, which is another positive factor for property investment. Low inflation helps maintain the purchasing power of money, meaning that the costs associated with buying and maintaining property are less likely to rise sharply. This stability in inflation can make property investment more attractive, as it reduces the risk of unexpected expenses and helps preserve the value of rental income over time. All these factors combined make 2025 a promising time to consider investing in Gabon's real estate market.

We genuinely hope this article was useful!. If you need to know more, you can check our our pack of documents related to the real estate market in Gabon.

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.