Cameroon’s property market has become a dynamic field of opportunity, particularly in the bustling urban areas of Yaoundé, Douala, and Limbe, where investment and residential properties are in constant demand.
These cities serve as economic hubs, attracting local and foreign investors, as well as a growing population looking for housing. However, while the demand for both ownership and rental properties continues to rise, supply has yet to keep pace, leading to an increased scarcity of housing options and driving up rental costs.
In Douala and Yaoundé, securing housing or commercial property has become notably challenging, often requiring extensive time and effort. The average search for quality accommodation takes up to a month in these high-demand cities, with competition especially fierce in desirable neighborhoods.
This shortage has opened avenues for numerous real estate companies to step in, with services tailored to facilitate property buying, leasing, and management. The typical rental rate for a three-bedroom house in Douala and Yaoundé is approximately XAF 125,000 (US$225) per month, while in smaller cities like Buea, Limbe, and Bamenda, rents are roughly 20% lower. However, the building costs in these urban centers are substantial, reaching about XAF 10 million (US$17,885) for a standard three-bedroom home, excluding land expenses, which can vary significantly by area.
Investment-wise, Douala presents an attractive proposition for those looking to capitalize on commercial and office spaces. According to British real estate firm Knight Frank, office properties in Douala yield a rate of return of 10%, with commercial rents following closely at 8.75%, and residential properties generating 7.5%.
This makes Douala an enticing option for investors, promising an average return of nearly 9%, regardless of property type. Yaoundé similarly draws investors, especially in the commercial sector, where rental returns hover around 9%. This slight edge over Douala’s commercial rents underlines Yaoundé’s unique position as both a political capital and an emerging real estate hotspot.
Beyond residential and commercial properties, the landscape of the Cameroonian real estate market also signals a gradual shift toward mixed-use developments, as investors and developers seek innovative ways to maximize returns. Projects that combine residential, commercial, and office spaces within single developments are increasingly popular, catering to a diverse market and generating a higher rate of return by leveraging multiple revenue streams.
This trend mirrors the global move towards mixed-use developments, as urban areas strive to accommodate various living, working, and shopping needs in one accessible space.
For Cameroon’s real estate sector to maintain its growth trajectory, increased investments in infrastructure and government support for housing development will be essential. Initiatives that ease access to affordable housing, incentivise private investment, and streamline property acquisition processes could alleviate the current supply constraints and boost confidence in the market. With Douala and Yaoundé as its focal points, Cameroon’s property market holds considerable promise, attracting investors willing to navigate the complexities of a high-demand, undersupplied market poised for further expansion.
Source : African Property Magazine – Exclusive
