Housing Finance in Senegal

Overview

This profile is also available in French here.To download a PDF version of the full 2020 Senegal country profile, click here.

With a population of 16.2 million in 2019, Senegal is nearly 47 percent urbanised with over half of the population under the age of 20. The country recorded economic growth of 5.2 percent in 2019, a decline from 6.4 percent in 2018, however the COVID-19 global pandemic is expected to result in the loss of more than four points of GDP.

Senegal has a long tradition of promoting housing and is one of the pioneers in Africa in the production of planned housing and serviced plots. The public real estate companies, National Moderate Rent Housing Corporation and Cape Verde Real Estate Company, were established before independence. However, despite political and regulatory initiatives, notably the implementation of the Housing Bank of Senegal (BHS), the enactment of laws on housing cooperatives, and the promotion of social housing, the country has a significant housing deficit of approximately 370 000 units in 2020.

Dakar is one of the main financial hubs of the West African Economic and Monetary Union (WAEMU) zone, and almost all commercial banks in the country offer mortgages. Interest rates have fallen in recent years to between 6.5 percent and 10 percent. However, due to high household poverty rates, almost all the products currently listed by real estate developers are financially inaccessible for the vast majority of those looking for a property. A loan on the best terms from the banks to acquire the cheapest housing currently available on the market would require a monthly income of about CFA232 000 (US$397), which excludes 70 percent of potential applicants.

To address this, the government has initiated a project of 100 000 housing units over five years. Through this project, the state intends to provide support to the housing sector, which can reduce the costs by nearly 40 percent. Nevertheless, the cheapest housing is expected to cost approximately US$17 000, excluding taxes, and will only be accessible to 30 percent of households.

Find out more information on the housing finance sector of Senegal, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.

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