5 African Cities Where Buying Beats Renting for Homeownership Advantage

While renting in African cities provides some short-term advantages, the benefits of owning a property are enormous. Owning a home provides financial stability, inflation protection, and the potential for asset appreciation. It also encourages long-term residency and community participation while allowing for individualization and stability.

Owning a home appears to be more advantageous than renting at first glance, but due to considerations such as property taxes and upkeep costs, renting has become the safer alternative for many, even some high-net-worth individuals.

However, property ownership is viewed as the pinnacle of achievement in many African communities, and as a result, many seek to be landlords.

Furthermore, rent prices in many African cities are tied to inflation and can skyrocket over time. Fixed-rate mortgages, on the other hand, help homeowners by providing protection against prospective inflation.

This consistency in housing expenses allows for better financial planning and protects against the volatility of rental markets.

Buying a home is a long-term investment. Homeowners avoid paying rent by increasing the value of their property.

This equity may increase over time, providing security and a financial buffer. Renters, on the other hand, do not build equity, and their housing expenses do not improve their net worth.

Fortunately, several African cities are economically positioned to make property ownership appear more attractive than renting. With that said, here are the top five major African cities where buying a property outperforms renting.

This list is based on Numbeo’s price-to-rent ratio, which is “the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside). Lower values suggest that it is better to buy rather than rent, and higher values suggest that it is better to rent rather than buy.”

RankCityCountryPrice-to-rent ratio
1.Port ElizabethSouth Africa6.3
2.DurbanSouth Africa9.2
4.JohannesburgSouth Africa10.2

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