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.

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.

Courtesy of Numbeo, below are the 10 African cities with the highest property prices.

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 center and outside of the city center.

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

Read Full Story