ADVERTISEMENT
No AD

Top 10 African cities with the least affordable housing

September 20th 2023, 6:25:12 pm
Top 10 African cities with the least affordable housing
  • Business Insider Africa presents the top 10 African cities with the least affordable housing.
  • This list is courtesy of Numbeo. 
  • The values in the list are reflective of Numbeo’s price-to-income ratio. 

In recent years, the global real estate market has been marked by a remarkable trend of skyrocketing property prices.

This surge in property values has far-reaching implications, affecting everyone from prospective homebuyers and renters to investors, policymakers, and even the overall economy. Depending on the economic climate of a particular location, various places have varied property prices. The African continent is not an exception to this rule.

Africa is a continent diverse in culture, geography, and of course economics. Some regions have a fairly decent standard of living while others may not be so fortunate. As a result, the price for property differs based on where you find yourself in.

Recommended articles

As a result, there are indicators out there showing which regions are more expensive to live in and which ones are cheaper. Numbeo is one such platform with its own indicators. This platform generally highlights the differences in the standard of living across the globe, including the difference in property values.

ADVERTISEMENT
No AD

Courtesy of Numbeo, below are the 10 African cities with the highest property prices. This list is an update from Top 5 African countries with the least affordable housing.

Methodology

The values in the list are reflective of Numbeo’s price-to-income ratio.

The price-to-income ratio is a fundamental measure for apartment purchase affordability, where a lower ratio indicates better affordability. It is typically calculated as the ratio of median apartment prices to median familial disposable income, expressed as years of income (although variations are used elsewhere).

Numbeo’s formula assumes and uses: net disposable family income, as defined as 1.5 * the average net salary (50% is the accepted percentage of women in the workforce) median apartment size is 90 square meters price per square meter (the formula uses) is the average price of square meter in the city centre and outside of the city centre.

ADVERTISEMENT
No AD

PS: Numbeo notes that there is no standard formula to calculate property price indices. The platform’s formulas differ from other research institution’s indexes such as the Case-Shiller Index, UK Housing Price Index, etc.

Rank City Country Price to ratio income Global rank
1. Douala Cameroon 48.0 1st
2. Addis Ababa Ethiopia 34.0 13th
3. Algiers Algeria 25.6 26th
4 Rabat Morocco 18.5 48th
5. Alexandria Egypt 17.6 58th
6. Tunis Tunisia 14.9 89th
7. Casablanca Morocco 14.9 90th
8. Cairo Egypt 13.8 115th
9. Marrakech Morocco 13.6 122nd
10. Nairobi Kenya 11.2 116th
Chinedu Okafor
Chinedu is a Senior Reporter at Business Insider Africa with 5 years experience creating profoundly engaging and insightful content.

JOIN OUR PULSE COMMUNITY!


Our newsletter gives you access to a curated selection of the most important stories daily.
Oops! An error Occured
ADVERTISEMENT
No AD

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

MOST POPULAR