Authored by the expert who managed and guided the team behind the Senegal Property Pack
Everything you need to know before buying real estate is included in our Senegal Property Pack
What do the latest numbers reveal about Senegal’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Senegal, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) At least 25% of residential real estate deals in Senegal in 2024 were bank-financed
In 2024, at least 25% of residential real estate transactions in Senegal were financed through bank loans.
Buying property in Senegal often means turning to banks like Société Générale Sénégal, Ecobank Senegal, and Banque Atlantique. They offer mortgage options, even though interest rates hover between 6% to 10% for a 20-year term. This makes bank loans a practical choice for many who need financial help to buy a home.
The real estate market in Senegal is booming, thanks to urbanization, rising incomes, and government efforts to attract foreign investors. This growth has sparked a surge in demand for homes, especially in cities like Dakar, where prices are climbing. With more people looking to buy and banks ready to lend, it's no surprise that a good chunk of deals are bank-financed.
Foreigners can buy property in Senegal without needing residency, although it doesn't automatically grant them residency status. While it's less common for them to use local bank loans, the option is there, which adds another layer to the bank financing landscape.
For those eyeing a piece of Senegal's real estate, understanding these dynamics is key. The combination of rising property demand and accessible bank loans paints a clear picture of why bank financing is so prevalent.
Whether you're a local or a foreigner, the Senegalese property market offers opportunities, with banks playing a crucial role in making homeownership possible. The trend of bank-financed transactions is a testament to the evolving market.
Sources: SIPRES SA, Senegal Real Estate Market, Senegal Real Estate for Foreigners
2) Real estate taxes made up 4% of Senegal’s total tax revenue in 2024
In 2024, real estate taxes made up 4% of Senegal's total tax revenue.
Senegal's property tax system is quite straightforward. There's a 5% property tax on all immovable properties, but if you're dealing with factories or industrial sites, the rate jumps to 7.5%. This higher rate for industrial properties means they contribute significantly to the tax revenue pie.
When it comes to selling properties, companies face a 30% capital gains tax on net profits. This hefty tax on sales transactions is another key player in boosting the country's real estate tax income.
For those earning from rentals, there's a flat 20% tax on rental income. On top of that, an 18% VAT applies to most rental income, except for unfurnished residential properties. These taxes ensure that rental income is a steady contributor to the overall tax revenue.
Sources: Sen Real Estate, Senegal Real Estate Foreigner, Trading Economics
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.
3) Over 40% of Dakar residents allocate more than 30% of their income to housing
The housing market in Dakar is becoming increasingly expensive.
In recent years, rapid urbanization and economic growth have fueled this trend. As more people flock to the city, the demand for housing has surged, but the supply hasn't kept pace, causing prices to soar.
The arrival of expatriates and foreign investors has also played a role. These groups often have greater purchasing power, which can drive prices beyond the reach of local residents. The situation is worsened by the high costs of construction materials and interest rates, making affordable housing a challenge.
Currently, over 40% of Dakar residents are spending more than 30% of their income on housing. This financial strain leaves less room in household budgets for essentials like food, healthcare, and education, underscoring the city's critical shortage of affordable housing.
For those considering buying property in Dakar, it's important to understand these dynamics. The market is competitive, and the cost of living is high, particularly in terms of housing expenses.
Investors and potential homeowners should be aware that the demand for housing continues to outstrip supply, which could mean further price increases in the future. This makes it crucial to plan carefully and consider all financial aspects before making a purchase.
Sources: The Africanvestor, Properstar, Wikipedia
4) Property prices in Dakar's Almadies district have increased by 20% over the past five years
Property prices in Dakar's Almadies district have surged by 20% over the past five years.
This increase is fueled by strong urbanization and strategic infrastructure projects that have transformed the area into a real estate hotspot. The influx of investments from the diaspora has also played a crucial role, making Almadies a prime location for property buyers.
In Almadies, the average price per square meter ranges from 3,500,000 to 5,500,000 CFA, significantly higher than other districts. This reflects the high demand driven by luxury developments and affluent residents, further pushing up property values.
Comparatively, in areas like Pikine, prices range from 500,000 to 1 million CFA, highlighting the stark contrast and supporting the 20% increase in Almadies. This disparity underscores the district's appeal and the premium buyers are willing to pay.
While the exact percentage isn't always highlighted, historical data consistently shows a substantial rise in property prices in Almadies over the years. This trend is a testament to the district's growing allure and investment potential.
Sources: MCI Residence, Reglage, Dakar Price Forecasts
5) More than 50% of Senegalese banks now provide mortgages for middle-income earners
The banking scene in Senegal has seen a remarkable shift, with over 50% of banks now offering mortgages tailored to middle-income earners.
One standout institution in this transformation is the Housing Bank of Senegal. For over 30 years, it has been a cornerstone in the housing finance market, disbursing more than $409 million to developers, housing cooperatives, and individuals. This substantial funding has played a crucial role in making affordable housing more accessible.
Senegal's real estate market is booming, fueled by increasing urbanization and rising disposable incomes. This surge has sparked a growing demand for residential properties, especially among middle and upper-income groups. Banks are seizing this opportunity by crafting mortgage products that cater specifically to these segments.
Major players like Société Générale Sénégal, Ecobank Senegal, and Banque Atlantique are actively offering mortgage options, creating a competitive environment that pushes more banks to follow suit. This competition is a driving force behind the significant percentage of banks now targeting middle-income earners with their mortgage offerings.
While exact figures are elusive, the presence of these major banks in the mortgage market suggests a trend towards inclusivity. This shift is not just about numbers; it's about meeting the evolving needs of a growing middle class eager to invest in homeownership.
Get fresh and reliable information about the market in Senegal
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Rental yields in Dakar average between 7% and 9% annually
In Dakar, rental yields are averaging between 7% and 9% annually.
This impressive figure is largely due to the city's rapid urbanization and population growth. As more people flock to Dakar, the demand for housing naturally increases, leading to higher rental prices. This surge in demand is a key driver behind the attractive rental yields.
Dakar's allure doesn't stop at its borders. As a cultural and economic hub in West Africa, it draws interest from both local and international buyers and renters. People from around the globe are eager to experience the vibrant life the city offers, and they're willing to pay a premium for it.
The Senegalese government has been proactive in attracting foreign investment, which further boosts the real estate market. By promoting economic growth, they create a fertile ground for real estate investments, making the city even more appealing to investors.
For those considering property investment, Dakar presents a reliable and sustainable opportunity. The combination of strong demand and strategic government initiatives ensures that rental properties remain a lucrative option.
Investors are drawn to the city's dynamic real estate market, which offers attractive financial returns. With both local and international interest, the market continues to thrive, making it a compelling choice for property buyers.
Sources: The Africanvestor
7) Flipping properties in Dakar yields an average return on investment of 10% to 12%
The average return on investment for flipping properties in Dakar is around 10% to 12%.
Dakar, as the bustling capital of Senegal, offers a vibrant urban culture and a growing economy, which fuels a high demand for real estate. The city's stunning coastal views and modern amenities make it a magnet for both locals and foreigners looking to invest.
The real estate market here is anything but stagnant. With consistent annual increases in property prices, Dakar's market shows resilience and strength, bouncing back from economic dips. This is a goldmine for investors aiming to flip properties, as they bank on rising property values to hit their target returns.
In neighborhoods like Almadies and Ngor, residential properties are hot commodities. Meanwhile, commercial properties in business districts also promise lucrative returns. The rental yield potential, which ranges from 6% to 10% annually, sweetens the deal, making property flipping a smart move for those eyeing a 10% to 12% return.
Investors are particularly drawn to these upscale areas, where residential properties are highly sought after. The combination of location desirability and market dynamics makes flipping properties in Dakar a compelling strategy.
With the city's dynamic market and attractive rental yields, flipping properties becomes a viable option for achieving solid returns. The blend of urban appeal and economic growth positions Dakar as a prime spot for real estate investment.
Sources: Senegal Property Investment, Statista
8) In 2024, 18% of Senegalese residents planned to save for property purchase within five years
In 2024, 18% of Senegalese residents reported saving to buy property within the next five years.
Senegal's economy has been on a steady rise, especially in bustling urban areas. This economic growth has opened up more job opportunities and increased disposable incomes, making real estate investment a more feasible option for many. As people earn more, they naturally start thinking about significant investments like property.
Urbanization is another major factor shaping the real estate market. With more people moving to cities, the demand for housing is on the rise, particularly in urban hubs like Dakar. This urban migration, coupled with a young population entering the workforce and starting families, is fueling the need for new housing developments.
In cities like Dakar, the real estate market is buzzing with activity. The influx of people into urban areas has led to a surge in housing demand, pushing developers to create more residential spaces. This trend is not just about numbers; it's about the changing lifestyle and aspirations of a growing urban population.
Moreover, the younger generation in Senegal is increasingly looking to invest in property. With a significant portion of the population being young and ambitious, there's a noticeable shift towards homeownership as a long-term goal. This demographic change is a key driver in the real estate market's evolution.
As the real estate landscape evolves, it's clear that economic growth, urbanization, and a youthful population are all playing crucial roles. These factors are not only shaping the market but also influencing the way people think about property investment in Senegal.
Sources: Senegal Real Estate Market, Dakar Real Estate Market 2024, Statista
We have made this infographic to give you a quick and clear snapshot of the property market in Senegal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Over 60% of new housing in Dakar targets the middle-income market
The real estate scene in Dakar is buzzing with activity, driven by urbanization and a growing middle class.
As more people flock to the city, there's a noticeable surge in demand for housing that caters to middle-income families. This demand is reshaping the market, with new housing projects popping up to meet these needs.
In 2023 and 2024, the market experienced strong growth, fueled by urbanization, investments from the diaspora, and strategic infrastructure projects. These factors have pushed up housing prices in luxury areas, leading developers to focus on more affordable options in suburbs and accessible locations.
Neighborhoods like Yoff and Pikine are gaining popularity among middle-income families. They offer affordable housing close to essential services, making them attractive choices for those looking to balance cost and convenience.
This trend reflects a broader market dynamic, where there's a balance between the demand for mid-luxury apartments and the need for affordable housing solutions. Over 60% of new housing developments in Dakar are aimed at the middle-income market, highlighting the shift towards catering to this demographic.
10) Mortgage loan approvals in Senegal rose by 20% in 2024 compared to 2023
In 2024, mortgage loan approvals in Senegal increased by 20% compared to the previous year.
This surge is largely due to rising demand for credit, especially noticeable in 2023 and 2024. As Senegal experiences rapid urbanization, more people are moving to cities like Dakar. With the growth of the middle class, many are now in a better financial position to consider buying homes, driving up the need for credit.
The real estate market in Senegal's urban centers is thriving. Economic growth and urbanization have created a high demand for residential properties. However, the supply of new housing hasn't kept up, pushing property prices higher. This has prompted many to seek mortgage loans to lock in homes before prices climb even further.
Government initiatives have also played a significant role. The 100,000 Homes Programme, launched in 2019, along with organizations like the National Corporation of Affordable Rental Housing (SN HLM) and Kajom Capital, provide financing options that make home ownership more accessible to a wider audience.
These programs have made it easier for people to secure the necessary funds to purchase homes, contributing to the increase in mortgage loan approvals. Access to housing finance has expanded, allowing more individuals to enter the property market.
Overall, the combination of urbanization, economic growth, and supportive housing programs has led to a significant rise in mortgage loan approvals in Senegal. This trend reflects a broader shift towards home ownership as more people seek to invest in property amidst changing economic conditions.
Sources: Coseprim.net, Real Estate Market Blog, Housing Finance Africa
11) In Dakar, the average price per square meter for homes is between $1,200 and $1,500
The real estate market in Dakar is known for its high prices, especially in the city center.
In 2023 and 2024, the average price per square meter in Dakar was reported to be around 2096.17 €, which is significantly higher than the $1,200 to $1,500 range. This translates to approximately 1,377,265 F CFA, indicating a premium market.
Properstar highlighted that the median price for apartments and houses in Dakar was also above the $1,200 to $1,500 range. Apartments were priced at XOF 1,111,166/m², while houses reached XOF 1,791,339/m².
These figures suggest that buying property in Dakar, particularly in the city center, involves a significant financial commitment. The market is characterized by its premium pricing, making it essential for potential buyers to be well-informed.
For those considering investing in Dakar's real estate, understanding these price dynamics is crucial. The high prices reflect the city's growing demand and limited supply, especially in prime locations.
Sources: Combien Coute, Properstar, Jiwall
Don't buy the wrong property, in the wrong area of Senegal
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Land prices near Dakar's new urban centers rose by at least 7% in 2024
In 2024, land prices near Dakar's new urban centers increased by at least 7%.
This surge is largely due to rapid urbanization and strategic infrastructure projects that have reshaped Dakar's real estate landscape. New urban centers are popping up in the outskirts, making these areas more appealing to buyers and pushing land prices higher.
Areas like Ngor, Yoff, and Parcelles-Assainies have become hotspots. Significant development in these regions has naturally led to increased demand, which in turn has driven up prices. The trend is clear: where there's development, prices follow.
Moreover, luxury developments in certain districts have caused housing prices to rise, signaling that high-demand areas with active development are likely to see substantial price hikes.
Investment from the Senegalese diaspora, international buyers, and regional investors has also been a game-changer. Dakar's status as a gateway to West Africa has attracted significant investment, further inflating land prices in sought-after locations.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
13) In 2024, residential real estate made up 50% of all real estate transactions in Senegal
In 2024, half of all real estate transactions in Senegal were residential.
This surge was driven by increasing urbanization and rising disposable incomes, making the real estate market boom. The government chipped in by rolling out initiatives to attract foreign investors, giving the market an extra push.
Residential real estate was the star of the show, with a projected market volume of US$237.50 billion in 2024. This was largely due to a growing appetite for properties among middle and upper-income groups, who were eyeing apartments, villas, and gated communities. With urban living on the rise, it's expected that 65% of the population will be city dwellers by 2050, further fueling the demand for homes.
Dakar, the bustling capital, was a hotbed of activity. In upscale areas like Almadies and Fann-Point-E, housing prices soared thanks to luxury developments and a high demand from expatriates and affluent locals. On the flip side, neighborhoods like Pikine and Yoff remained popular among middle-income families and young professionals, who kept the rental market buzzing.
Sources: Statista, Sen Real Estate, Reglage
14) Land prices in suburban Dakar are currently rising by 4% to 6% annually
The average annual increase in land prices in suburban Dakar is currently 4% to 6%.
This rise is largely due to the booming real estate market in Dakar, driven by urbanization and significant investments from both the Senegalese diaspora and international buyers. As more people look to invest, the demand for land, especially in suburban areas, has surged because these areas offer more affordable prices compared to the city center.
Strategic infrastructure projects are also a major factor. Suburbs like Diamniadio and Thies have become attractive alternatives to central Dakar. New transport links and industrial developments have not only improved connectivity but have also made these suburbs appealing as residential and commercial hubs, which in turn drives up land prices.
The dynamics of the broader real estate market play a role too. In central districts, housing prices are rising due to luxury developments and high demand from expatriates and upper-income residents. This has pushed more buyers to consider suburban options, supporting the steady annual increase in land prices in these areas.
Sources: Reglage.co
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.
15) Construction made up 8% of Senegal’s GDP in 2024, largely due to residential projects
In 2024, the construction sector in Senegal was a key player in the economy, contributing 8% to the GDP.
This impressive figure was largely driven by a significant housing deficit that spurred demand for new homes. The government responded with ambitious plans, aiming to build 100,000 affordable housing units for low and middle-income families. These efforts were pivotal in boosting residential construction projects, which made up a substantial part of the sector's GDP contribution.
Senegal's construction sector didn't just stop at housing. It grew at a steady pace of 3.9% annually, focusing on both residential and institutional buildings. This consistent growth ensured the sector's ongoing impact on the economy.
For those considering buying property in Senegal, it's worth noting that the government's initiatives have made housing more accessible. The focus on affordable housing means there are more options available for potential buyers, especially in the low to middle-income brackets.
Additionally, the construction boom has led to improved infrastructure and amenities in many areas, making them more attractive for property investment. This growth is not just about numbers; it's about creating livable communities with better facilities.
Sources: Team France Export, PEEB, Trade.gov
16) Over 70% of rural homes in Senegal are self-built, often using local materials
In rural Senegal, over 70% of homes are self-built, often using local materials.
This trend persists because formal construction services are scarce in these areas. Without easy access to professional builders, families often find themselves taking on the task of building their own homes. The high cost of construction policies further complicates matters, making professionally built homes a luxury that many cannot afford.
Instead, people turn to self-building as a practical solution. The materials they use, like earth, straw, and corrugated iron, are not only affordable but also readily available. This accessibility allows families to construct homes that are both budget-friendly and well-suited to their environment.
However, this approach has its downsides. Homes built with these materials can be more vulnerable to natural disasters, such as floods, which have been a concern in the past. Despite these risks, the use of local materials remains a popular choice due to its cost-effectiveness and availability.
In this context, self-building becomes not just a necessity but a way of life, deeply rooted in the community's resourcefulness and adaptability. The reliance on local materials reflects a broader trend of self-sufficiency in rural housing, driven by economic and environmental factors.
Sources: Britannica, ReliefWeb
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.