It is to be expected that housing prices will vary throughout Africa due to its large size. Every region—North, South, East, or West—has unique economic and cultural factors that affect housing prices.
Housing continues to be one of the major problems facing many African countries. Decent but affordable housing is a necessity for citizens across the continent.
However, due to factors such as urbanisation, there has always been pressure on the few relatively affordable housing options available to meet the demand in most cities on the continent.
Meanwhile, governments have failed to find a lasting solution to the menace, leaving the sector for private investors to take control of. Real estate is considered a highly lucrative venture with substantial capital.
These houses are sold at prices that cannot be deemed affordable to people, especially in the informal sector with meagre income.
That notwithstanding, rapid urbanisation and economic expansion are taking place in several African countries. In simple economic terms, as the population grows, so does the demand for homes, which drives up real estate values.
The high cost of real estate presents difficulties for locals, but it also presents investment opportunities for those looking to profit from the real estate market.
According to Numbeo, which is well known for its economic index and keeps a closer look at living standards globally, it has listed the following African countries as being lucrative for anyone seeking to invest in real estate.
Africa’s housing preferences tend to be on the higher end of the pricing scale, according to Numbeo’s 2024 research. Periodically, the platform updates its indexes.
Numbeo’s price-to-income ratio can be seen in the values in the current list. An essential indicator of how affordable a flat is is the price-to-income ratio, with a lower ratio denoting greater affordability.