A small country with beautiful beaches, emerald mountains, and vast natural resources, Sierra Leone has a bright future. The country’s recent history is emblematic of West Africa’s upward trajectory as a region. West Africa as a whole and Sierra Leone in particular have overcome a period of post-colonial adversity, and are now poised to experience an exciting period of growth.
Sierra Leone: A Promising Property Investment Destination
Sierra Leone’s society and economy have overcome a drawn-out civil war in the 1990s to script a successful comeback. The country’s per-capita GDP is on the rise, foreign investments are drawing expats to its shores, and the Sierra Leone housing market is set to experience dynamic growth.
Are you considering buying a home in West Africa as a foreigner? The booming residential market in Sierra Leone is full of opportunities that cater to every budget, from affordable housing in Sierra Leone to luxury dwellings in gated compounds. This article will help you understand how to invest in property in the country.
Understanding the Dynamics of the Sierra Leone Housing Sector
According to the Centre for Affordable Housing Finance in Africa, a non-profit research organization, Sierra Leone has a population of approximately 8.1 million, with roughly 3.5 million residing in urban areas. Sierra Leone’s urban population is expected to continue growing at an annual rate of roughly over 3%, as calculated by the World Bank in 2022.
This trend of urbanization is driven by people migrating from rural areas and migrating from overseas in search of better lifestyles and new opportunities. Along with new city dwellers comes the demand for new houses. This has caused something of a residential real estate renaissance in Sierra Leone over the last few years.
A number of factors are responsible for the recent boom in the Sierra Leone housing market. Working in concert, they have created favorable conditions for citizens and foreigners looking to acquire affordable housing in Sierra Leone.
1. Social Stability
Sierra Leone is a religiously tolerant and secular nation. The majority religion is Islam, along with a significant minority practicing Christianity. But in Sierra Leone, people of different faiths do not discriminate against one another. After surviving a civil war, the nation’s society is focused on building a better future that is free from conflict. The official language of the country is English, which makes it easier for foreigners to invest and do business in Sierra Leone.
2. Diaspora Effect
During the 1990s, many citizens of Sierra Leone migrated from the country to escape strife. Despite living away from their homeland, members of the Sierra Leonean diaspora have retained strong ties with their country. Many have relatives living in Sierra Leone, and with the conflict concluded and brighter prospects on the horizon, they are looking to invest in a second home, retirement home, or buy property for their family.
3. Foreign Investment
Overseas companies are engaged in a number of businesses in Sierra Leone. These operations have also resulted in an influx of expats as foreigners employed by these companies move to Sierra Leone for work. This demographic is used to a certain standard of living, prompting players in the real estate market to meet the demand from expats.
4. Economic Growth
The gross domestic product of Sierra Leone has been experiencing consistent growth year-on-year. Barring a negative setback in 2020 (due to the global pandemic), Sierra Leone’s GDP has been on the rise since 2021. Along with its mining and tourism industries, Sierra Leone’s real estate market has been a driving force for growth.
Valued as a whole, the real estate industry was worth $54.2 billion, with local residential real estate being responsible for the lion’s share at $48.52 billion. As the nation’s economic prospects continue to improve, the positive effects will also be felt in the Sierra Leone housing market.
Exploring Investment Prospects in Sierra Leone Real Estate
The star player of Sierra Leone’s housing market success story is its capital, Freetown. Along with its surrounding areas, Freetown has become a hub where expats and locals can enjoy an elevated lifestyle in Sierra Leone. Located on the Atlantic Coast with white sand beaches and lush, green foothills, Freetown and its suburbs (like Newton and Waterloo) are picturesque places to live.
Jobomax Homes is a developer that specializes in building aspirational homes at affordable rates in Sierra Leone. With one development already open for homeowners in Newton, Jobomax Homes is the perfect partner for foreigners or diaspora Sierra Leoneans looking to invest in the real estate market.
Challenges and Solutions in the Sierra Leone Housing Market
Like many other developing nations, property ownership in Sierra Leone can be slightly complicated. Certain factors can make buying and owning a home in the country less straightforward. Of course, these aren’t enough to deter property investors who are well-informed. That’s why it’s worthwhile to look at the challenges facing Sierra Leone’s real estate industry, and some possible solutions to those problems.
Access To Financing
Sierra Leone is still primarily a cash-based economy. In fact, a fair percentage of the country’s population doesn’t use credit cards or even have bank accounts. So, while the demand for quality housing is always high, getting home loans remains a challenge for many Sierra Leoneans.
Solution: Many property developers offer customers convenient inhouse payment plans after completing a background check. At Jobomax Homes, buyers can choose from a range of differently priced housing models and qualify for financing.
Local Regulations
There are two forms of landholding rights in Sierra Leone, colonial land or freehold land and customary land or leasehold land. Unfortunately, foreigners cannot own land, but they can lease land and property in Sierra Leone.
Solution: Consulting the developer before purchasing a home allows buyers to protect their property ownership rights. Even foreigners can qualify for a 99-year lease while investing in Sierra Leone’s housing market.
Future Trends: What Lies Ahead for Sierra Leone’s Real Estate Landscape?
As more of Sierra Leone’s population rises out of poverty and acquires middle-income status, the demand for upscale urban residences will continue to grow. Overcrowding could become a possibility in places like Freetown, leading to the growth of new, well-planned settlements in other regions. Green building techniques are expected to become more common in Sierra Leone’s real estate industry as the nation continues to develop.
Sustainability in Real Estate
Sierra Leone is vulnerable to shortages of fuel and food. And like the rest of the world, it’s susceptible to the effects of climate change. Responsible building practices and sustainable construction projects are the need of the hour, and Jobomax Homes sets an example for other developers to follow. From using renewable energy sources like solar energy to power their projects to working with eco-friendly materials like hydraform bricks to reduce a building’s carbon footprint, Jobomax Homes demonstrates that sustainable construction and dream homes can co-exist.
Buy a New Home in Sierra Leone
Jobomax Homes’ community, The Springs at Newton, is ready for occupancy. Visit our company website or contact us to learn more about them.
