rents explode in Dakar

Dieye Sarr has lived with his family for twelve years in a small apartment in the popular district of Grand Yoff in Dakar. But since he refused an increase in his rent, the real estate agency that manages his home has made his life impossible. “A bailiff came three times, although each time I was less than a day late in paying the rent. And I never had any arrears ”, he complains.

Threatened with expulsion, he is now summoned to the Dakar court for refusing to pay bailiff fees. He suspects his landlord of wanting to make him leave to re-let his apartment at a higher price. “If I get evicted, I don’t know how I’m going to find new accommodation because the rents have become too expensive”, worries the father of the family.

This scenario is more and more frequent, notes Elimane Sall, president of the Association for the Defense of Tenants of Senegal (ADLS) for whom the exorbitant increase in rents in Dakar is beyond comprehension. “We are approached every day by five to ten tenants who ask for advice, often following a summons for a rent increase”, explains the activist, who estimates that more than half of the incomes of Dakar residents is now absorbed by rent, reducing their purchasing power.

An active capital located on a narrow peninsula, Dakar has more than 3.7 million inhabitants. That is a quarter of the Senegalese population, estimated at 17 million people who are grouped in 0.3% of the territory. Faced with high population growth and rural exodus, the economic and political capital is submerged and the supply of housing is not sufficient to absorb the demand.

“A lot of speculation”

Between 1994 and 2014, rents increased 256% in the Dakar region, according to government data. An increase which has since continued at the same pace according to real estate market specialists.

“Prices have continued to increase drastically because there is a lot of speculation. For example, a property that was rented for 150,000 CFA francs [quelque 230 euros] per month in 2014 is now rented to 350,000 [environ 530 euros] “, observes Abdoul Diedhiou, manager of the Mon agent immobilier agency, specifying that more and more wealthy investors in the sub-region – such as Ivorians or Nigeriens – are buying land in Senegal due to the country’s political stability.

This stability also attracts companies, institutions and international organizations such as the UN which set up their regional headquarters in Dakar. The influx of expatriates with purchasing power far greater than those of Dakar is contributing to the price hike in certain sectors of the capital.

“Many real estate agencies and owners only wish to rent to foreigners and have refused my application”, regrets Kathy Diop, Senegalese middle class. This French and English teacher at home has been looking for an F2 apartment in the upscale Almadies district for several weeks without success.

Even in the most popular neighborhoods

But rising rents are found in all neighborhoods, even the most popular. According to Mamadou Mbaye, president of the Federation of Real Estate Agencies and Brokers of Senegal, 56% of the inhabitants of the capital are tenants as it is so difficult and expensive to acquire a property.

“First, land is very expensive in Dakar because there is no more space, bank financing is inaccessible with interest rates exceeding 10%, taxation continues to increase and the construction cost is high ”, list M. Mbaye. Factors which slow down investment in real estate and which have an impact on rents: landlords keep raising them in an attempt to gain profitability.

However, the state had tried in 2014 to regulate prices with a law imposing a drop of 4 to 29% depending on the amount of rent. The legislation also required to take into account the size of the accommodation and other criteria such as its dilapidation or its location in the agglomeration.

But in practice, owners continued to set their prices freely according to the market. “The owners evict their tenants, explaining that they want to do work or occupy their accommodation themselves. After a lick of paint, they rent it again at a higher price “, adds Elimane Sall, president of ADLS.

Regulatory failure

Amadou Thiam, Director General of Construction and Housing at the Ministry of Urban Planning recognizes the failure of the 2014 law. “Despite the regulations governing rents, prices have skyrocketed again since 2019”, he notes. In response, the ministry is working on a project to build 100,000 homes for sale.

The objective: to reduce rental demand and therefore rents. “We are targeting first-time buyers, who often work in the informal sector and have difficulty accessing financing. We provide them with a housing fund social in order to make them solvent ”, explains Mr. Thiam.

For the moment, 28,000 housing units are under construction on the outskirts of Dakar and in the interior of the country, and 53,000 more are expected to follow thanks to investments from Qatar and the United Arab Emirates. “The Dakar issue cannot be resolved by staying in Dakar. We need a decongestion policy ”, specifies Mr. Thiam, who praises the new town of Diamniadio, 40 kilometers from Dakar, where some ministries have been relocated.

Specialists and players in the real estate market recommend going further and exploring other avenues, such as the construction of social rental housing. “A social and moderate rent policy would make it possible to regulate the market”, considers agent Abdoul Diedhiou. Many are also calling for the establishment of a government agency to regulate rent prices and the sector.

According to Amadou Thiam, a rent observatory should see the light of day by October. In the meantime, Dieye Sarr is anxious at the idea of ​​going to court in early September where he will know if he is deported or not.