With a GDP annual growth rate of 6-7% since 2015, Senegal is classified among the fastest-growing economies in Africa. Senegal offers a stable political environment, a favourable geographic position, economic reforms and infrastructure investment.
The Government of Senegal has prioritised efforts to improve the business climate with growing opportunities for foreign investment. In 2014, Senegal adopted ESP 2014-18 (Emerging Senegal Plan) to accelerate its progress towards becoming an emerging Economy by 2035, accelerating the GDP growth rate and providing better living conditions for the population.
Senegal, especially its capital, Dakar, experienced a huge property boom in the last few years. Across the country, Senegal’s real estate market saw the quick development of shopping centers, luxury villas, rental homes, and hotels.
Residential sector and hotel industry – Senegal’s capital, Dakar, is in the midst of a property boom. The residential market and the hotel industry have sprung up in the country in recent years, more particularly in Dakar’s coast. The major driver is sharp population growth and tourism development. Senegal is a top tourist destination in Africa. Dakar’s peninsula is visited by Africans and by tourists worldwide. Besides, many wealthy people who are looking for a second home choose Dakar as it is one of the safest places in Africa and it is a fascinating location.
There are also ambitious plans for the development of a new city at Diamniadio, located at 30 km from Dakar, and this is likely to become an increased focus for activity across all property market sectors.
The city residential rents get a rate of return of 7% in 2017.
Retail – The Dakar retail market is relatively undersupplied with only two major upscale developments; the demand is strong generating investment opportunities for investors and developers. The city retail rents get a rate of return of 9.5% in 2017.
Office market – More and more multinational firms are setting up their offices in the country as Senegal is considered as the leading economic center in Western Africa and is very accessible to other African countries. The office market activity has shown a shift northward of Dakar, particularly when involving international companies. Investments in Dakar generate an average investment rate of return of 10% for office rents in 2017.
AMS Africa is here to assist you in finding the right real estate investment in Senegal. At AMS Africa, we can help you discover the best real estate opportunities in Senegal.