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Senegal's property market is experiencing robust growth with annual price increases of 3-7% and strong rental yields of 6.3-9.0%.
The market is driven by rapid urbanization, with 52.3% of the population now living in cities, infrastructure developments including the new airport and rail projects, and government programs targeting 100,000 new affordable housing units by 2025. However, housing supply remains severely constrained with only 5,000-12,000 new units built annually against a demand of 300,000 units per year, creating significant upward pressure on prices across all urban centers.
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Senegal's property market shows strong fundamentals with consistent price growth of 3-7% annually, driven by urbanization and infrastructure development.
The market faces a severe supply-demand imbalance with housing demand at 300,000 units annually versus actual construction of only 5,000-12,000 units, creating investment opportunities but also affordability challenges.
| Market Indicator | Current Status (2025) | Forecast 2030 |
|---|---|---|
| Average Price Growth | 3-7% annually | 5-7% annually (cumulative 30-50%) |
| Dakar Property Prices | 1.1-1.8M CFA/sqm | 1.4-2.7M CFA/sqm (projected) |
| Urbanization Rate | 52.3% | 60% |
| Rental Yields | 6.3-9.0% | 6-9% (stable) |
| Housing Supply vs Demand | 5,000-12,000 built vs 300,000 needed | 15,000-20,000 built vs 350,000 needed |
| Mortgage Interest Rates | 6-10% | 7-9% (projected) |
| Home Ownership Rate | 81% | 75-78% |
What's the current average price per square meter for residential property in Dakar compared to secondary cities like Thiès or Saint-Louis?
Residential property prices in Dakar significantly exceed those in secondary cities across Senegal.
In Dakar's central areas, average prices range from 1,100,000 to 1,800,000 CFA francs per square meter, with standard apartments averaging 1,110,121 CFA/sqm and houses at 926,362 CFA/sqm. Premium neighborhoods like Almadies command much higher prices, reaching 3,500,000 to 5,500,000 CFA francs per square meter.
Secondary cities offer more affordable options with Thiès showing median apartment prices of 808,753-814,854 CFA/sqm and houses at 867,587-903,012 CFA/sqm. Saint-Louis follows similar patterns with typical prices ranging between 700,000-900,000 CFA francs per square meter, though comprehensive data for this city remains limited in published sources.
The price differential reflects Dakar's role as the economic capital and its concentration of employment opportunities, international businesses, and infrastructure development. As of September 2025, this gap continues to widen as urbanization drives demand in the capital while secondary cities maintain more moderate appreciation rates.
It's something we develop in our Senegal property pack.
How have property prices in Senegal changed annually over the past five years, in both percentage and CFA franc terms?
Senegal's property market has experienced consistent upward momentum over the past five years.
In Dakar and major urban areas, property prices have increased cumulatively by 23% from 2020 to 2025, translating to an average annual growth rate of 3-7% depending on district and property type. Luxury segments in prime areas have outperformed with 8-12% annual appreciation, while affordable housing segments grew at 5-8% annually.
In CFA franc terms, standard central apartments in Dakar that averaged approximately 900,000 CFA francs per square meter in 2020 have risen to 1,110,121 CFA/sqm by 2025. This represents an increase of over 210,000 CFA francs per square meter over the five-year period.
The appreciation has been driven by rapid urbanization, infrastructure development, limited land supply in central areas, and growing foreign investment. Government initiatives including the 100,000 housing program and major infrastructure projects have also supported price growth across urban centers.
Regional markets have shown more moderate but steady growth, with cities like Thiès experiencing approximately 15% cumulative appreciation over the same period.
What is the projected price growth rate for urban residential property in Senegal between 2025 and 2030?
Urban property prices in Senegal are projected to maintain robust growth through 2030.
Forecasts indicate cumulative price appreciation of 30-50% from 2025 to 2030, translating to annual growth rates of 5-7%. This projection is based on continued urbanization trends, ongoing infrastructure development, and sustained demand pressure from both domestic and international buyers.
Areas benefiting from new infrastructure investments, particularly around the Blaise Diagne International Airport, Dakar-Diamniadio corridor, and railway developments, are expected to see the highest appreciation rates. Properties in these zones could experience 10-15% annual increases due to improved connectivity and accessibility.
The projection assumes continued political stability, steady economic growth, and successful implementation of government housing programs. However, the severe supply-demand imbalance with only 5,000-12,000 new units built annually against 300,000 needed suggests upward price pressure will remain significant throughout the forecast period.
Luxury and coastal properties are expected to outperform the general market, while government efforts to increase affordable housing supply may moderate growth in that segment.
How many new housing units are expected to be built annually in Senegal over the next five years, and how does that compare to current housing demand?
| Category | Current Status (2025) | Projected (2026-2030) | Gap Analysis |
|---|---|---|---|
| Annual Supply | 5,000-12,000 units | 15,000-20,000 units | Still severely constrained |
| Annual Demand | 300,000 units | 350,000 units | Growing with population |
| Government Target | 20,000 units (100K program) | 25,000 units annually | Ambitious but necessary |
| Supply Deficit | 250,000+ units | 300,000+ units | Widening gap |
| Cumulative Shortfall | 1.25M units (5 years) | 1.65M units (next 5 years) | Crisis-level shortage |
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What percentage of Senegal's population is urban today, and what's the forecasted urbanization rate by 2030?
Senegal is experiencing rapid urbanization with significant implications for the property market.
As of 2025, approximately 52.3% of Senegal's 18.9 million people live in urban areas, representing about 9.9 million urban residents. This marks a substantial increase from previous decades, with urban population growth averaging 3.4% annually.
By 2030, urbanization is projected to reach 60% of the total population. This forecast is based on continued rural-to-urban migration driven by economic opportunities, infrastructure development, and government policies promoting urban development centers.
Dakar metropolitan area shows the highest urbanization rate at 98%, making it a concentrated hub for housing demand. The rapid urban population growth translates directly into increased demand for residential properties, putting additional pressure on already constrained housing supply.
This urbanization trend is a key driver of property market growth, as each percentage point increase in urban population represents approximately 200,000 additional people requiring urban housing solutions.
How does the current mortgage interest rate in Senegal compare to other West African countries, and what impact does this have on affordability?
Senegal's mortgage interest rates are positioned at the higher end of the West African Economic and Monetary Union (WAEMU) range.
Current mortgage interest rates in Senegal average 8.3-8.5% for standard 20-year terms, with some lenders offering rates between 6-10% depending on borrower profiles and property types. Major banks including Société Générale Sénégal, Ecobank Senegal, and Banque Atlantique actively offer mortgage products.
Compared to other WAEMU countries where rates typically range from 7-9%, Senegal sits at the higher end of this spectrum. This premium reflects the country's credit risk profile and banking sector dynamics, though it remains more favorable than many non-WAEMU African countries.
The relatively high interest rates significantly impact affordability. For a property worth 50 million CFA francs with a 20% down payment, monthly payments at 8.5% interest would be approximately 350,000 CFA francs over 20 years, limiting access primarily to middle and upper-income households.
The Banque de l'Habitat du Sénégal (BHS) provides more favorable rates around 8% and specialized programs, while government initiatives through FONSIS offer rates as low as 5-11% for qualified affordable housing projects.
What is the rental yield in Dakar versus regional cities?
Rental yields in Senegal's property market offer attractive returns for investors.
In Dakar, gross rental yields range from 6.3% to 9.0% for well-located apartments, with prime areas and properties near business centers achieving yields toward the higher end of this range. Tourist hotspots like nearby Saly can achieve even higher yields due to vacation rental demand.
Regional cities including Thiès and Saint-Louis show similar or marginally higher yield potential, estimated at 6.5-9.5%, due to lower capital values combined with steady rental demand from local workers, students, and government employees. However, comprehensive yield data for secondary cities remains limited in published market research.
These yields compare favorably to many international markets and reflect the supply-demand imbalance where rental demand consistently outstrips available inventory. The strong yields are supported by Senegal's urbanization trends, growing expat population, and limited rental supply in quality properties.
Investors should note that yields can vary significantly by property type, location, and tenant profile, with furnished properties and those targeting international tenants typically achieving premium rates.
How much foreign direct investment is currently flowing into Senegal's real estate sector, and what growth is forecast in the next five years?
Foreign direct investment in Senegal's real estate sector shows strong momentum with positive growth projections.
Senegal attracted USD 2.64 billion in total FDI inflows in 2023, with real estate and infrastructure capturing a significant portion of this investment. The Investment Code reforms have streamlined processes and offer tax incentives, making property acquisition more attractive for international buyers.
Foreign investment is particularly concentrated in luxury and coastal segments, with international buyers active in areas like Saly, Almadies, and Rufisque. These investors are drawn by rental yields of 6.3-9.0% and government incentives for foreign investment in the sector.
Over the next five years, FDI is expected to grow substantially, driven by oil and gas megaprojects, port developments, and continued government reforms. The government's "Digital Senegal 2025" strategy and Senegal 2050 plan emphasize attracting foreign investment with specific incentives for real estate development.
Multinational companies establishing operations in Dakar create additional demand for both commercial and residential properties, while the IFC-FONSIS partnership targeting affordable housing development signals institutional investor confidence in the market's growth potential.
What are the government's housing or urban development targets, for example the number of affordable units planned under national programs?
The Senegalese government has established ambitious housing targets through multiple coordinated programs.
- The flagship "100,000 Logements" program aims to deliver 100,000 new affordable housing units by 2025, specifically targeting low and middle-income families with household incomes up to 450,000 CFA francs monthly
- The Social Housing Supply Acceleration Program (PAOHS) targets production of 15,000 housing units annually at cruising speed, with plans to construct 40,000 units in the Pôle Urbain de Diamniadio alone
- SN-HLM component plans to provide over 20,000 adequate housing units with related infrastructure by 2022, including nearly 10,000 housing units comprising villas and apartments
- SICAP-SA component targets 10,000 suitable housing units by 2025, mainly in the capital region with full infrastructure
- The IFC-FONSIS partnership specifically focuses on rent-to-own schemes, starting with 200 houses in Dakar region and expecting to benefit 120,000 people directly
These programs address the critical housing deficit estimated at 325,000 units with an annual increase of 12,000 units. The multi-faceted approach combines public sector development through SN-HLM and SICAP-SA with private partnerships and innovative financing mechanisms.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Senegal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How is infrastructure development—such as the new airport, rail projects, or highways—expected to impact property values in surrounding areas?
Major infrastructure developments are creating significant property value appreciation in connected areas.
The Blaise Diagne International Airport, operational since 2017, continues to drive property values up by 10-15% in surrounding areas. The airport's connectivity has made previously remote areas more accessible, attracting both residential and commercial development.
The Dakar-Diamniadio toll highway and the TER (Train Express Régional) connecting Dakar to Diamniadio and the new airport are transforming the real estate landscape along these corridors. Properties with direct access to these transport links command premium pricing and experience accelerated appreciation.
The Pôle Urbain de Diamniadio, positioned as a new economic and social development center, benefits directly from this infrastructure investment. With plans for 40,000 housing units and major economic facilities, the area represents a significant growth opportunity for property investors.
Additional projects including the World Bank's Bus Rapid Transit (BRT) system, railway rehabilitation covering 209 km, and new toll roads to Saint-Louis and Touba will create additional property appreciation zones. Each major infrastructure project typically generates 10-15% value increases within a 5km radius.
It's something we develop in our Senegal property pack.
What percentage of Senegalese households currently own versus rent, and how is that ratio forecast to shift by 2030?
Senegal maintains a high home ownership rate, though this is expected to shift with urbanization trends.
As of 2025, approximately 81% of Senegalese households own their homes, representing one of the higher ownership rates in West Africa. This high ownership rate reflects cultural preferences, family inheritance patterns (27.5% of owners inherited their homes), and the prevalence of self-construction (61.8% of housing production).
However, ownership patterns vary significantly between urban and rural areas. In central urban areas, particularly Dakar, rental tenancy is more dominant due to higher property prices, younger demographics, and mobile workforce requirements.
By 2030, the home ownership rate is projected to decrease to 75-78%, with rental share increasing correspondingly. This shift reflects ongoing urbanization, high property prices making ownership less accessible for young urbanites, and changing lifestyle preferences among the growing middle class.
The trend toward increased renting is supported by the youthful population (median age 19.6 years), growing expat community, and urban employment patterns that favor mobility. This demographic shift creates opportunities for rental property investment, particularly in urban centers where young professionals and international workers concentrate.
What risks could slow down property market growth in Senegal, such as inflation, political instability, or currency fluctuations, and how big of an impact might each have in percentage terms?
| Risk Factor | Potential Impact | Likelihood | Mitigation Factors |
|---|---|---|---|
| High Inflation | 3-5% annual reduction in real wages | High | Government price controls on essentials |
| Political Instability | 0-10% property price volatility | Low-Moderate | Strong democratic institutions since 1960 |
| Currency Fluctuations | 2-4% impact on foreign investor returns | Low | CFA franc pegged to Euro provides stability |
| Rising Construction Costs | 5-8% increase in development costs | High | Limited local materials, import dependency |
| Credit Tightening | 10-15% reduction in buyer pool | Moderate | Government housing finance programs |
| Oversupply in Luxury Segment | 4-6% yield reduction from 6-10% | Moderate | Strong demand from expats and investors |
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.
Senegal's property market presents compelling investment opportunities with consistent annual growth of 3-7% and attractive rental yields of 6.3-9.0%, driven by rapid urbanization and major infrastructure developments.
However, the severe housing supply deficit of 250,000+ units annually creates both upward price pressure and affordability challenges that investors should carefully consider when making property decisions in this dynamic West African market.
It's something we develop in our Senegal property pack.
Sources
- The Africanvestor - 16 statistics for the Senegal real estate market in 2025
- The Africanvestor - Is 2025 a good time to buy real estate in Senegal?
- The Africanvestor - Is it worth it buying property in Dakar?
- The Africanvestor - 13 strong trends for 2025 in the Senegal property market
- The Africanvestor - Yes, property prices will rise in Dakar in 2025
- The Africanvestor - Are Senegal property prices going up now?
- Worldometer - Senegal Population 2025
- Trading Economics - Senegal Prime Lending Rate
- Centre for Affordable Housing Finance Africa - Senegal
- IFC - IFC and Senegal's Sovereign Wealth Fund Partner to Develop Affordable Housing