Real estate market growth in Senegal
The L?real estate in Senegal now has a long list of new projects launched all over the country. New neighborhoods are springing up all over Senegal. These new buildings are often made up of apartments and offices. In just a few years, the appearance of the Senegalese capital has been completely transformed. The construction of office buildings, which used to be concentrated in the city center (Dakar-plateau) is now expanding throughout Dakar. Although many new homes are being built in the area, demand remains high.
High housing demand compared to supply
Housing demand in the real estate in Dakar The number of would-be buyers in Senegal is increasing every year. Purchasing is becoming a real competition in terms of price. In fact, more than 150,000 searches for ??house for sale in Senegal "More than 30,000 searches for apartments for sale are carried out online every month. The current housing shortage has prompted the government to encourage property developers to build high-rise housing, as is the case in Marrakech, Morocco, with R+5 residential buildings. Mamoune Diagne's article illustrates these facts in greater depth.
The construction of residential buildings is becoming increasingly professionalized in Senegal. This can be explained by the complexity of the procedures to be followed and the number of formalities and regulations that apply in this field.
Diamnadio, a growing city
Tourism at the service of real estate
The high level of tourism in the city of Mbour has encouraged the development of residential villas for rent and sometimes for sale. Among these Mbour where demand for real estate is strong, we have Sally, Niakh-Niakhal and Ngaparou. The same effect is observed in the Ziguinchor real estate is developing in cities such as Kabrousse, Kafountin and Cap skirringto Ngallele to Saint-louis tourists help to create numerous real estate brokerage jobs. Tourism is a major factor in the development of the Senegalese real estate market all along the coast. In recent years, the number of construction sites for seasonal vacancies has multiplied.
Housing Market Price Trends
The strong demand for real estate, explained at the beginning of this article, has led to an increase in rental prices in Senegal. Since 2000, rental property prices have risen by an estimated 30%. According to the source combien-coute, the price per square meter of living space in Dakar is calculated at an average of 5,464,349 CFA francs, or 8330.34 euros.
Here are some of the factors that influence real estate prices in Senegal
- A key factor in Senegals housing crisis is the inflationary nature of the transaction. Foreign investors can own property in Senegal, but they may find it difficult to transfer money out of the country. Although the investment code allows foreigners to buy property in Senegal, it does not allow direct investment. There are numerous bureaucratic requirements, and opening a foreign exchange account requires government approval. Rental yields in Senegal are good - an apartment of 250 square meters in Dakar will cost around 750,000 CFA francs per month, representing a yield of 7.5%.
- In addition to rising prices, foreigners can also own property in Senegal. However, the issue is exacerbated by the inflationary nature of real estate transactions in the country. To make the housing market in Senegal more viable, everyone needs to play their part in reducing transaction costs and promoting economic growth. Senegal's real estate market is growing and offers a good opportunity for foreign investors.
- In addition to the booming real estate market, the country has a low-cost structure and is home to many expatriates from different countries. The country's capital, Dakar, is the economic center of the country. It's a relatively small country, so it's important to understand the market and the risks involved in buying Senegalese real estate. There are several ways to invest in the Senegalese real estate market.
- Much of Senegal's real estate market is based in rural areas, which are more affordable than urban areas. But there are many restrictions, especially where foreigners are concerned. For example, it is difficult to move money out of the country. The government requires a foreign investor's permit. The only way to transfer money is to use the national currency. This is not possible if you want to live.
Financial players in the Senegalese real estate sector include banks such as the BHS, Ecobank, the BICIScbao etc.? The latter grant loans to individuals and companies wishing to acquire, build, rent or renovate a property. These mortgages are accompanied by a insurance allowing the loan to be repaid in the event of a major event leading to an inability to honor the contract. Analysis of the real estate market shows that the interest rate for a loan is 8.69%, making it the most expensive in the Uemoa. According to the Setal.net website, the rate on home loans has risen from 6.4% to 8.69%.
L?Apix with the support of the French Ministry of the Economy and Finance finance are involved in facilitating monetary transfers linked to foreign investment in real estate. More and more nationals are investing in real estate.
Developers attack the market
The real estate agents In the space of just a few years, the number of properties on offer in Senegal has multiplied. It should also be noted that the bad ones are still present on the market, so future buyers will have to be vigilant. Here is an extract from l?Article by Angelique DiongueReal estate lawyer: ? We have the case of the Namora real estate company, which has been incriminated by many Senegalese, both inside and outside the country, and by members of various local housing cooperatives, of land swindling and breach of trust, with losses estimated at over two billion CFA francs. This is also the case of the "Agir Immo" real estate company, whose manager was sentenced to three (3) years? imprisonment, ordered to repay three billion CFA francs and fined one million CFA francs, under duress; two cases among many others...?