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Everything you need to know is included in our Senegal Property Pack
Are you thinking of investing in property in Senegal? Are you unsure if it's better to buy now or wait until next year?
Different individuals have different perspectives on market timing. Your Senegalese friend might suggest that now is the worst time to buy property, whereas your business partner in Dakar may have a different opinion and recommend taking advantage of the current market.
At TheAfricanvestor, when we create articles or update our pack of documents related to the real estate market in Senegal, we base our work on facts and data we can trust, not opinions or rumors.
We have gone through official reports and government website statistics in great detail. As a result, we have created a reliable database filled with valuable information. Here's what we found, which can help you decide whether it's the right time to buy real estate in Senegal.
Let's get started!
How is the property market in Senegal now?
Senegal is, today, a relatively stable country
Neutral
Stability is a necessary condition when investing in real estate because it safeguards against economic downturns and minimizes investment volatility. It is an information you need as a foreigner looking to buy a property in Senegal.
In today's context, Senegal can be regarded as a country that has achieved stability to some extent. The last Fragile State Index reported for this country is 74.2, which is a respectable number.
Senegal's relative stability today can be attributed to its strong democratic traditions, exemplified by peaceful transitions of power and a robust multi-party system since its independence in 1960. Additionally, the country's effective management of ethnic and religious diversity, with a majority Muslim population coexisting harmoniously with other groups, has fostered social cohesion and minimized internal conflicts.
Let's analyze other data now to assess whether it's a favorable time to purchase property in this country.
Senegal is forecasted to grow massively
Positive
Second thing to do before buying a property: consider the country's economic condition.
In accordance with IMF projections, Senegal is likely to finish 2024 with a growth rate of 8.3%, which confirms the country's quick development. For 2025, the consensus estimate is 10.2%.
That's not all - this impressive growth will keep going on since Senegal's economy is expected to increase by 32.9% during the next 5 years, resulting in an average GDP growth rate of 6.6%.
Senegal's expected massive growth means there will likely be an increased demand for housing and commercial spaces, driving up property values and rental income potential. This creates a promising opportunity for real estate investors to benefit from rising property prices and a growing market.
Let's now look at other metrics.
Senegal's population is growing and getting richer
Positive
Before you purchase real estate, take a moment to consider population growth and GDP per capita, 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 Senegal, the average GDP per capita has changed by 5.8% over the last 5 years. It's a good number. Furthermore, the Senegalese population is growing (+19% in 5 years).
This means that, if you purchase a beachfront villa in Dakar and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, there might be an increase in rental demand in Senegalese cities like Dakar, Thies, or Saint-Louis in 2025.
Properties promise really attractive yields in Senegal
Positive
If you're interested in a profitable property investment, consider the expected rental yields.
Rental yield is the measure of how much money you can earn from renting out a property compared to its cost.
Based on the data provided by Numbeo, rental properties in Senegal promise gross rental yields from 6.3% and 9.0%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Senegal.
You won't get better yields in many places.
Everything you need to know is included in our Senegal Property Pack
In Senegal, inflation is projected to remain minimal
Neutral
Inflation is the steady increase in the prices of everyday items.
It's when your customary plate of Thieboudienne in Dakar costs 8,000 CFA francs instead of 6,000 CFA francs a couple of years ago.
If you're considering investing in a property, high inflation can bring you several advantages:
- Property values tend to increase over time, leading to potential 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, preserving the value of the investment.
- Diversifying into real estate provides stability during inflationary periods.
According to the IMF, over the next 5 years, Senegal will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
This data infers that Senegal is expected to have near-zero inflation then. Unfortunately, buying a property now may not lead to significant price increases or high profits in the future.
Is it a good time to buy real estate in Senegal then?
Let's wrap things up!
Senegal is a relatively stable country, which makes it an attractive destination for property investment. Stability is a key factor when considering real estate, as it reduces the risks associated with political or economic upheaval. In Senegal, you can expect a more predictable environment, which is crucial for long-term investments. This stability provides a solid foundation for the country's economic growth and development, making it a good time to consider buying property there.
That's not all - Senegal's economy is on an impressive growth trajectory. Over the next five years, the economy is expected to increase by 32.9%, with an average GDP growth rate of 6.6%. This robust economic growth is a strong indicator of a thriving market, which is likely to lead to increased demand for housing and commercial spaces. As the economy grows, so does the potential for property values to rise, offering a promising opportunity for real estate investors.
Senegal's population is not only growing but also becoming wealthier. This demographic shift means more people will be looking for quality housing and commercial spaces, further driving up demand. As the population's purchasing power increases, so does the potential for higher rental income and property appreciation. This growing and increasingly affluent population makes Senegal an attractive market for real estate investment.
Additionally, rental properties in Senegal offer promising returns, with gross rental yields ranging from 6.3% to 9.0%, according to data from Numbeo. This is a significant return on investment, especially when combined with the country's minimal inflation projections. Low inflation helps maintain the value of your investment over time, ensuring that your returns are not eroded by rising prices. All these factors together make 2025 a great time to consider buying property in Senegal.
We genuinely hope this article has provided you with valuable insights and information.. If you need to know more, you can check our our pack of documents related to the real estate market in Senegal.
-Will real estate prices go up in Senegal?
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.