Residential Real Estate Leases - Senegal

In Senegal, the Residential Real Estate Leases market market is expected to witness significant growth.
By 2024, the market's revenue is projected to reach US$17.10bn, with House Leases dominating the segment by capturing a projected market volume of US$15.06bn.
Looking ahead, the market is anticipated to showcase a steady annual growth rate (CAGR 2024-2029) of 10.97%, which will result in a market volume of US$28.78bn by 2029.
Senegal's residential real estate market is experiencing a surge in demand due to the country's economic growth and increasing urbanization.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Senegal is experiencing significant growth and development.

Customer preferences: Customers in Senegal are increasingly opting for residential real estate leases instead of purchasing properties. This shift in preference can be attributed to several factors. Firstly, leasing provides individuals with the flexibility to move and change residences more easily, which is particularly appealing to the younger generation and expatriates. Additionally, leasing allows individuals to avoid the high upfront costs associated with purchasing a property, such as down payments and closing costs.

Trends in the market: One of the key trends in the residential real estate leases market in Senegal is the increased demand for furnished apartments. This trend is driven by the growing number of expatriates and international organizations operating in the country. These individuals and organizations prefer fully furnished apartments as it eliminates the need to purchase and transport furniture. Landlords are capitalizing on this trend by offering fully furnished units and charging higher rental rates. Another trend in the market is the emergence of co-living spaces. Co-living spaces are becoming popular among young professionals and students who are seeking affordable and communal living arrangements. These spaces offer shared common areas and amenities, such as kitchens, living rooms, and laundry facilities. The rise of co-living spaces can be attributed to the increasing cost of living and the desire for social interaction and networking opportunities.

Local special circumstances: Senegal's stable political environment and growing economy have attracted foreign investors, leading to an influx of capital in the real estate sector. This has resulted in the construction of new residential properties and the renovation of existing ones, further expanding the options available for residential real estate leases. Additionally, the government has implemented policies to promote affordable housing, which has also contributed to the growth of the market.

Underlying macroeconomic factors: Senegal's strong economic growth and increasing urbanization rate are key macroeconomic factors driving the development of the residential real estate leases market. The country's GDP growth has been consistently above the regional average, creating a favorable environment for investment in real estate. Furthermore, the rapid urbanization rate has led to a growing demand for housing, particularly in urban areas. As a result, developers are focusing on constructing residential properties to meet this demand, further fueling the growth of the market. In conclusion, the residential real estate leases market in Senegal is experiencing significant growth and development due to the preferences of customers, such as flexibility and cost-effectiveness. The market is witnessing trends like the demand for furnished apartments and the emergence of co-living spaces. The stable political environment, growing economy, and government policies promoting affordable housing are local special circumstances contributing to the market's growth. The underlying macroeconomic factors of strong economic growth and increasing urbanization rate are also driving the development of the market.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Senegal

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Senegal

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts