Challenges and Opportunities in Cameroon’s Real Estate Sector

1. Challenges & Opportunities in Cameroon’s Real Estate Sector PRESENTED BY: BBOYO REAL ESTATE +1 682 313 9965 www.bboyo.com

2. Introduction The real estate sector in Cameroon is a cornerstone of national development, providing housing, commercial infrastructure, and investment opportunities. With rapid urbanization and a projected population growth surpassing 30 million by 2030, the demand for housing and real estate services continues to rise. Despite its importance, the sector faces multiple structural and institutional challenges, particularly in the areas of land tenure, finance, and regulatory enforcement. At the same time, opportunities exist for expansion and innovation, making real estate a sector of both complexity and promise. BBOYO REAL ESTATE 01

3. About Us BBboyo Real Estate is a leading real estate company in Cameroon, committed to providing trusted, transparent, and professional property services. With a deep understanding of the local market, we offer a wide range of solutions, including houses for sale in Cameroon, land for sale in Cameroon, and property investment opportunities, tailored to meet the needs of individuals, families, and investors. At BBboyo Real Estate, we work closely with some of the best real estate in Cameroon, ensuring that every client benefits from expert guidance and secure transactions. Our team is driven by the values of integrity, reliability, and customer satisfaction, enabling us to deliver services that go beyond simply buying and selling properties. BBOYO REAL ESTATE 02

4. Overview of the Real Estate Sector in Cameroon The Cameroonian real estate sector is primarily driven by residential and commercial developments in urban areas such as Douala, Yaoundé, and Buea. According to the Ministry of Housing and Urban Development (2023), the housing deficit is estimated at 1.5 million units, with demand growing by approximately 100,000 units annually. Residential Real Estate Housing needs are increasing due to rural-to-urban migration and a growing middle class. Commercial Real Estate Expansion of retail outlets, office complexes, and hospitality projects in major cities reflects economic growth. Industrial Real Estate Logistics hubs, warehouses, and special economic zones are gradually developing, though at a slower pace compared to residential and commercial markets. Despite its potential, the sector remains unable to meet growing demand due to systemic inefficiencies and limited access to finance. BBOYO REAL ESTATE 03

5. Historical and Legal Context The real estate sector in Cameroon has evolved under the dual influence of customary and statutory legal systems: Customary Land Tenure Traditionally, land was owned communally and managed by local chiefs, often without written documentation. Statutory Framework Introduced during colonial rule, the statutory system required formal registration of land titles. Current Challenges The coexistence of these two systems frequently leads to conflicts, fraudulent sales, and uncertainty in property rights. The process of acquiring legal documentation remains susceptible to corruption. lengthy, costly, and A comprehensive reform of land management laws and the digitization of land registries is urgently required to enhance transparency and investor confidence. BBOYO REAL ESTATE 04

6. Key Challenges in Cameroon’s Real Estate Sector 1. Land Ownership and Tenure Conflicts Conflicts between statutory and customary ownership frequently result in legal disputes. Multiple allocations of land titles undermine confidence among investors and private buyers. 2.High Construction Costs Dependence on imported materials, coupled with inflation and currency volatility, significantly increases construction costs. As a result, property prices remain high and unaffordable for the majority of citizens. 3.Limited Access to Housing Finance Mortgage markets are underdeveloped, with commercial banks requiring high down payments and charging interest rates between 10% and 15%. This effectively excludes low- and middle-income households from accessing housing loans. 4.Regulatory Inefficiencies Administrative delays, bureaucratic red tape, and corruption in land registration processes hinder efficiency. These inefficiencies discourage both local and foreign investment. 5.Housing Deficit With a deficit of over 1.5 million housing units, Cameroon faces acute shortages in both affordable and middle-income housing. This has fueled the growth of informal settlements around major cities. 6.Informal Real Estate Brokerage The majority of real estate brokers operate without proper licensing or regulatory oversight. This lack of professionalism contributes to fraudulent practices and mistrust within the sector. BBOYO REAL ESTATE 05

7. Opportunities in Cameroon’s Real Estate Sector 1. Urbanization and Demographic Growth Over 56% of Cameroon’s population resides in urban areas, creating significant demand for modern residential housing and infrastructure. 2.Affordable Housing Initiatives Government programs and public-private partnerships aim to reduce the housing deficit through affordable housing projects, which represent a growing investment opportunity. 3.Expansion of Commercial Real Estate The rise of service industries, particularly banking, telecommunications, and retail, has created strong demand for modern office spaces and shopping malls. 4.Tourism and Coastal Development Tourism hubs such as Kribi and Limbe present opportunities for investment in resorts, luxury housing, and hospitality infrastructure. 5.Diaspora Investment Remittances from Cameroonians abroad, amounting to nearly 5% of national GDP, are increasingly directed towards real estate investments, particularly in urban housing projects. 6.Technological Advancements Digital property platforms and the potential use of blockchain in land registries can enhance transparency and efficiency in property transactions. 7.Sustainable and Green Housing Growing awareness of environmental sustainability has created a niche market for eco-friendly housing projects that combine modern living with reduced environmental impact. BBOYO REAL ESTATE 06

8. Role of Government & Institutions The Government of Cameroon has acknowledged the critical role of real estate in national development. Key initiatives include: The National Housing Development Plan, which seeks to increase the availability of affordable housing. Promotion of public-private partnerships (PPPs) to facilitate large-scale construction projects. Infrastructure development, including road, airport, and port modernization, which enhances the value of surrounding real estate. However, reforms remain necessary in simplifying land registration, curbing corruption, and creating an enabling environment for private sector participation. BBOYO REAL ESTATE 07

9. Comparative Insights When compared to other Sub-Saharan African countries: Kenya Features a more developed mortgage market and accessible financing options. Ghana Has implemented a digitized land registry, improving efficiency and reducing fraud. Nigeria Demonstrates strong private sector participation in urban housing and development. commercial property Cameroon must adopt similar best practices to strengthen its legal and financial frameworks. BBOYO REAL ESTATE 08

10. Future Outlook The outlook for Cameroon’s real estate sector is cautiously optimistic. Key drivers include urbanization, diaspora contributions, and government-led initiatives. Technological innovation and legal reforms could significantly improve transparency and efficiency. However, failure to address land ownership conflicts and financing barriers may limit the sector’s full potential. BBOYO REAL ESTATE 09

11. Recommendations GOVERNMENT INVESTORS Accelerate land registry digitization, streamline administrative procedures, and introduce tax incentives for affordable housing. Focus on high-demand urban centers while prioritizing due diligence to mitigate risks associated with land tenure. FINANCIAL INSTITUTIONS Develop affordable mortgage products and expand microfinance options for housing. REAL ESTATE BROKERS Establish professional licensing and training systems to improve credibility and accountability. BBOYO REAL ESTATE 10

12. Conclusion Cameroon’s real estate sector is defined by both pressing challenges and substantial opportunities. While issues such as land disputes, financing barriers, and bureaucratic inefficiencies constrain growth, demographic trends, urban expansion, and diaspora investments present clear prospects for development. With targeted reforms and strengthened institutional frameworks, real estate can emerge as a central driver of economic transformation and social progress in Cameroon. BBOYO REAL ESTATE 11