Investing in Cameroonian land: value-creation models and risks

Cameroonian land market context

Cameroon's land market is shaped by rapid urbanisation, a structural housing shortage in major cities, and growing demand for secure land. These factors create significant investment opportunities for informed investors.

Model 1: Land Banking — Acquire and hold

Land banking means acquiring land in zones with strong future appreciation potential, then holding it until its value has risen enough. It is the simplest strategy but requires patience and good initial selection.

Model 2: Subdivision and servicing

This model means acquiring a large raw plot, subdividing and servicing it, then selling the individual plots. It has the highest value-creation potential: well-located raw land can see its value multiplied by 3 to 8 after subdivision and servicing.

• Acquiring a large raw plot
• Feasibility studies and subdivision plan
• Obtaining administrative permits
• Servicing works (roads, water, power)
• Marketing the serviced plots

Model 3: Residential development

Residential development means building homes on land to sell or rent. This model requires more capital but generates recurring income (rents) or a capital gain on sale.

Risks to know

• Legal risk: unsecured land title, ownership disputes
• Liquidity risk: land is an illiquid asset
• Regulatory risk: zoning or regulation changes
• Market risk: adverse price movements
• Operational risk: cost overruns in development projects

Investment-plot selection criteria

• Legal security: existing or registrable land title
• Location: near development corridors
• Accessibility: existing or planned access road
• Appreciation potential: nearby infrastructure projects
• Physical constraints: topography, soil type, natural risks
• Acquisition price vs appreciation potential