Cameroon

Office leasing activity centred on Douala

Despite the introduction of new office properties in the Yaoundé market, Douala remains the primary hub for office demand among occupiers. Positioned strategically as the nation's economic epicentre and a prominent port city, Douala appeals to both local and international tenants through its wide range of office options.

Immeuble Grassfield, located on Rue du Gouverneur Carras, is an example of a modern, high-quality office that has attracted international tenants such as Nestle, British American Tobacco, KPMG, and NSIA.

Elsewhere, tenants with ties to the logistics sector are establishing satellite offices in Kribi, attracted by the recent inauguration of the new deep-water port and its proximity to the offshore gas facility.

Centrally located retail outlets thriving

The retail market in Cameroon is evolving, characterised by a mix of traditional markets and modern retail outlets. With a growing middle class and urbanisation, consumer demand is steadily rising, driving expansion in various sectors, including supermarkets, shopping malls, and e-commerce platforms. In addition, retail developers that centre their offerings around an experience are emerging as the most successful.

Major cities like Douala and Yaoundé serve as retail hubs, attracting domestic and international retailers. Small malls, in particular, such as Super 'U,' The PlaYce, and the Spa Malls have thrived in inner city locations.

In contrast, malls in out-of-town locations are still unable to attract high levels of footfall. The Douala Grand Mall (18,000 sqm), for instance, opened in 2020 and features 140 Stores, 22 restaurants, and 5 cinema halls. Although anchored by Carrefour, the mall struggled to reach reasonable occupancy levels due to its out-of-town location close to the Douala Airport.

Industrial rents hold steady

Local and international investors are showing interest in the manufacturing, mining and energy sectors, boosting demand for warehousing. The government's efforts to attract investment through incentives and infrastructure development have contributed to the sector's expansion.

The most significant investment to date has been Kribi’s US$ 1.3bn deep water port, which started construction in 2011 and was delivered across multiple phases. It has modern facilities capable of handling large vessels and a wide range of cargo types, including containers, bulk and general cargo.

The port's proximity to the Kribi Industrial Zone further enhances its significance, as it facilitates the movement of goods to and from industrial facilities. However, challenges persist, including bureaucratic hurdles and infrastructural limitations, not least in the N7 road from Kribi to the intersection with the N3 (Douala to Yaoundé highway), which has not been designed to take heavy traffic. As a result, it is showing significant signs of deterioration, causing concern to those operating logistics businesses who often continue to favour the Douala port.

Residential sales expected to rebound as international travel resumes

Affluent local and international buyers have fuelled demand for the high-end residential market in Yaoundé. Upscale properties attracting interest tend to include good amenities and sophisticated design and are in prime locations within exclusive neighbourhoods such as Bastos and Mont Fébé.

There is an increasing move towards apartments in gated communities, away from the villas, partly due to increasing land prices, which is driving up sales prices in the best areas.

Likewise, in Douala, developers are focused on high-end apartment buildings buoyed by a notable increase in demand from affluent domestic and international buyers, with upscale neighbourhoods like Bonanjo and Akwa amongst the most sought after .