Real estate in Dakar is booming, attracting both local and international investors. For those considering buying an apartment in the Senegalese capital, understanding the different financing options available is essential. Find out how to make your Dakar real estate project a reality with this detailed guide to financial solutions adapted to the local context.
Bank mortgages: the preferred solution
Bank credit remains the most common option for financing buying a property in Dakar. Senegalese financial institutions have developed a wide range of products to meet the needs of different buyer profiles.
Characteristics of home loans in Senegal
- Repayment term Up to 20 or 25 years depending on the establishment
- Interest rates : Generally between 7% and 12%
- Personal contribution required From 10% to 30% of the total acquisition amount
- Maximum debt ratio Limited to 33% of monthly revenue
Rates are significantly higher than in Europe or North America, but remain competitive in the African context. These conditions can vary considerably from one bank to another, hence the importance of comparing several offers.
Eligibility criteria for a home loan
To obtain bank financing in Dakar, you will generally need to meet the following requirements:
- Proof of stable, regular income (permanent contract or well-established professional activity)
- Have a significant personal contribution (higher for non-residents)
- Present a complete file including :
- Salary slips for the last 3 to 6 months
- Recent certificate of employment
- Bank statements
- Proof of address
- Identification
- Promise to sell or compromise
- Provisional financing plan
Banks assess each application individually, paying particular attention to the applicant's professional stability and ability to repay.
VEFA: a flexible solution for new builds
VEFA (Vente en Etat Futur d'Achèvement), commonly known as "off-plan purchase", offers an attractive alternative for acquiring a new home. of new apartments in Dakar.
Principle and advantages of VEFA
This system allows payments to be staggered according to the progress of the work, generally according to a predefined schedule:
- Reservation 5% to 10% at contract signature
- Foundations 20% to 25%
- Completing the walls 25% to 30%
- Waterproofing (roof) 15% to 20%
- Completion of interior work 15% to 20%
- Delivery Remaining balance (5% to 10%)
This formula offers several advantages:
- Easing financial pressure with instalment facility
- Generally lower purchase price to that of an equivalent property already built
- Legal warranties on completion of work
- Customization options certain aspects of the property
- Compatibility with a bank loan to complete the financing
Precautions to be taken
While VEFA is an attractive option, it requires a few special precautions:
- Check the the promoter's financial strength and reputation
- Make sure the contract includes completion guarantees in compliance with legislation
- Provide delay clauses with penalties
- Visit other projects from the same promoter to assess quality
Cash buying: quick and easy
For buyers with the necessary funds, a cash purchase remains the simplest and most economical solution.
Advantages of buying without credit
- No financial expenses (interest, loan insurance)
- Simplified and accelerated procedure
- Strengthened negotiating position facing the seller
- Greater legal certainty (no condition precedent linked to obtaining a loan)
This option is particularly popular with foreign investors and the Senegalese diaspora, who wish to avoid the administrative complexities associated with cross-border credit.
Practical tips to optimize your financing
- No financial expenses (interest, loan insurance)
- Simplified and accelerated procedure
- Strengthened negotiating position facing the seller
- Greater legal certainty (no condition precedent linked to obtaining a loan)
This option is particularly popular with foreign investors and the Senegalese diaspora, who wish to avoid the administrative complexities associated with cross-border credit.
Prepare your file efficiently
- Build up a substantial personal contribution it will make it easier to obtain a loan and reduce its overall cost
- Put your financial house in order several months before submitting your application (avoid overdrafts and consumer credit)
- Gather all the necessary documents upstream to save time
Optimize your search for financing
- Systematically compare offers from several banking institutions
- Negotiate the terms interest rate, administrative charges, early repayment penalties
- Consider using a broker to help you with your business
- Allow for a safety margin in your repayment capacity
Anticipate all ancillary costs
Beyond the purchase price, several additional costs must be budgeted for:
- Notary fees approximately 5% to 7% of the price of the property
- Bank handling fee generally between 50,000 and 200,000 FCFA
- Loan insurance : mandatory to obtain a loan
- Property appraisal fees generally payable by the borrower
- Real estate agency fees if you go through an intermediary
Conclusion: An affordable investment with the right preparation
Despite relatively high interest rates by Western standards, buying an apartment in Dakar remains a feasible project thanks to the diversity of financing solutions available. The key to success lies in meticulous preparation of your file and careful comparison of the various options.
To secure your investment over the long term, focus on neighborhoods with high value-added potential, such as AlmadiesMermoz, or Sacré-C?ur, and ensure the quality of construction and legal compliance of the property.
With the right financial strategy and the right choice of real estate, your Dakar apartment will not only be a pleasant place to live, but also a profitable investment in a booming market.