What $100,000 can buy in African cities

August 6, 2022, 6:00 pm Blog Buying Seen: 3677
What $100,000 can buy in African cities
Cairo, Dar es Salaam, Johannesburg, and Lagos have emerged as the most affordable cities in Africa for residential property due to rising rental demand, rising supply, and, in most cases, recovering local economies.

African cities are generally still underdeveloped when compared to the top residential centres in the globe, such as Dubai, Hong Kong, or Manhattan. However, relative affordability has improved and had a period of stable rise over the previous ten years.

Additionally, the pandemic's effects have kept the markets active because of pent-up demand, with housing prices now appearing to be recovering and buyer inquiries picking up steam.

The chart below shows how affordable residential space is in Africa by showing how many square meters $100,000 will get you in the continent's largest cities.

Our data shows that Casablanca and Nairobi are the most expensive cities, with only 62 and 68 square meters of space available, respectively. However, the least expensive cities are Lagos, Johannesburg, Dar es Salaam, and Cairo, where you can get more than 200 square meters of space for US$100,000. We present a few instances of these qualities below.

1. A 1- bedroom unit at Solaris Apartment in Accra
2. A studio apartment at the Lennox, Accra
3. 2 Executive Suites at Iconic Towers in Victoria Island Lagos
4. A 2-bedroom apartment at Highridge Towers apartments in Nairobi

The issue of affordability persists.
Overall, while these cities appear to be comparatively affordable in comparison to other parts of the world, they remain relatively unaffordable for the majority of residents about median salaries.

According to JLL, in Cairo during Q1 2022, sale prices on 6th October city and New Cairo climbed by 8% and 6% Y-O-Y, respectively, in line with inflation. However, the average household discretionary income is only predicted to rise by 7% by 2022. Oxford Economics.

In Nairobi, it was predicted that property prices would increase thrice in 2021 compared to the previous year and that this trend would continue in 2022. However, over this time, the average household's disposable income only rose by 2%.

As long as there remains a demand for affordable housing, a similar situation keeps happening in other places. For the majority of households in Africa, access to housing continues to be difficult due to a shrinking supply.
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About the Author: eze saviour
eze saviour
ppn editor