The Growth of the Real Estate Market in Senegal
The sector ofreal estate in Senegal now has a long list of new projects launched across the country. New neighborhoods have emerged in Senegal. These buildings springing up in its neighborhoods are often made up of apartments and offices. In a few years the appearance of the Senegalese capital has completely been transformed. The construction of work offices that focus only in the city center (Dakar-plateau) is now expanding throughout the city of Dakar. Although it is true that there are many housing constructions on the territory, the demand remains strong.
High housing demand compared to supply
La demande de logement dans le marché de l’immobilier à Dakar in Senegal turns out to be very high, the number of prospective buyers continues to grow every year. The acquisition becomes a real competition at the price level. The finding shows that per month more than 150,000 searches for ''house for sale in Senegal » l have been registered and that more than 30,000 searches for apartments for sale are made online each month. The current housing deficit has prompted the State to encourage real estate developers to build high-rise homes, as is done in Marrakech in Morocco with R+5 residential buildings. Mamoune Diagne on her article illustrates these facts in more depth.
The construction of residential buildings is becoming more and more professionalized in Senegal. This can be explained by the complexity of the procedures to be followed and the number of formalities and regulations that are present in this area.
Diamnadio, a growing city
Tourism at the Service of Real Estate
The strong tourist activity present in the city of Mbour favored the development of residential villas for rental and sometimes for sale. Among these localities Mbour where real estate demand is well felt we have Sally, Niakh-Niakhal and Ngaparou. It is the same effect that is observed in the region of the Ziguinchor real estate is growing in cities like Kabrousse, Kafountin and Cap skirring, à Ngallele à Saint-louis les touristes participent à la création de nombreux emploi de courtage immobilier. Tout au long de la petite cote le tourisme représente un important facteur de développement du marché de l’immobilier sénégalais. Le nombre des chantiers de logements de vacance saisonnière s’y est multiplié ces dernières années.
Housing Market Price Developments
La forte demande immobilière, expliquée au début de cet article, a conduit à une augmentation du prix de la location au Sénégal. Depuis 2000 la hausse du prix de l’immobilier locatif pourrait être estimée à plus de 30%. Selon la source combien-coute, le prix du mètre carré de la surface habitable dans la ville Dakaroise se calcule à 5 464 349 F CFA en moyenne soit 8330.34 Euro.
We can cite some factors that influence the price of real estate in Senegal
- Un facteur clé de la crise du logement Senegals est la nature inflationniste de la transaction. Les investisseurs étrangers peuvent posséder des biens immobiliers au Sénégal, mais ils peuvent avoir du mal à transférer de l’argent du pays. Bien que le code d’investissement permet aux étrangers d’acheter des biens au Sénégal, il ne permet pas d’investir direct. Il existe de nombreuses exigences bureaucratiques et l’ouverture d’un compte de change nécessite l’approbation du gouvernement. Les rendements locatifs au Sénégal sont bons – un appartement de 250 mètres carrés à Dakar coûtera environ 750 000 F CFA par mois, ce qui représente un rendement de 7,5%.
- In addition to rising prices, foreigners can also own real estate 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 must play their part in reducing transaction costs and promoting economic growth. The real estate market in Senegal is growing and offers a good opportunity for foreign investors.
- Apart from the booming real estate market, the country has a low cost structure and is home to many expatriates from different countries. The capital of the country, Dakar, is the economic center of the country. It is a relatively small country, so it is important to understand the market and the risks of buying Senegalese property. There are several ways to invest in Senegals real estate market.
- Much of the property market in Senegal is based in rural areas, which are more affordable than those in urban areas. But there are many restrictions, especially when it comes to foreigners. For example, it is difficult to move money from the country. The government requires a permit from the foreign investor. The only way to transfer money is to use the national currency. It is not possible if you want to live.
Financial players in the Senegalese real estate sector are banks such as the BHS, Ecobank, the BICIS, cbao etc.… These grant loans to natural and legal persons wishing to acquire, build, rent or renovate real estate. These real estate loans are accompanied by a insurance allowing the loan to be repaid in the event of a major effect resulting in the impossibility of honoring the contract. The analysis of the real estate market shows that the interest rate for a loan is 8.69% making it the most expensive in WAEMU. According to the Setal.net site, the home loan rate rose from 6.4% to 8.69%.
L'Apix with the assistance of the Ministries of Economy and finance participate in the facilitation of monetary transfers linked to foreign investment in real estate. More and more nationals are investing in real estate.
Promoters attacking the market
The real estate agents offering programs in Senegal have multiplied in large numbers in the space of a few years. It should also be noted that the bad ones are still present in the market, hence the vigilance of future buyers. Here is an excerpt fromArticle by Angelique Diongue, Real estate lawyer: '' We have the case of the real estate company Namora which has been incriminated by many Senegalese from inside and outside and members of various local housing cooperatives, land fraud and breach of trust and whose damage is estimated at more than two billion CFA francs. This is also the case of the real estate company "Agir Immo" whose manager was sentenced to a prison term of three (3) years, reimbursement of the sums of three billion and a fine of one million, constrained by body; two cases among many others.
