Rising real estate prices are exacerbating socio-economic disparities in urban areas, drawing sharp lines between the rich and the disadvantaged.
Rising property values are putting home ownership out of reach for many, while a select few are reaping the benefits of investing and owning property.
Inequality and social discontent are exacerbated by this widening gap between rich and poor, which not only widens social disparities but also limits the social mobility and economic prospects of disadvantaged groups.
Additionally, expensive real estate is contributing to evictions and displacement as developers and investors seek to take advantage of lucrative opportunities for urban redevelopment and gentrification.
Urban renewal and beautification efforts often result in the displacement, displacement, and homelessness of vulnerable populations, including: B. Low-income people and informal settlers.
With that in mind, here are the five African cities with the most unaffordable real estate in 2024, based on Numbeo’s ‘Price to Income Ratio’. This list does not represent the cities with the highest overall property prices, but rather properties that are unaffordable to local residents.
Price-to-income ratio is an important indicator of housing affordability. A lower ratio means more affordable. It is usually expressed in years of income and calculated as the ratio of average housing costs to a family’s average disposable income.
| Rank | City | Country | Property price to income ratio |
|---|---|---|---|
| 1. | Lagos | Nigeria | 19.2 |
| 2. | Cairo | Egypt | 18.4 |
| 3. | Nairobi | Kenya | 11.5 |
| 4. | Cape Town | South Africa | 5.4 |
| 5. | Durban | South Africa | 4.2 |