Uganda’s Kampala Has The Most Expensive Housing in the World – NUMBEO REPORT

Kampala, Uganda’s commercial hub, is a bustling city with a booming economy and a rich cultural tapestry.

However, amidst its wealth, many inhabitants face a difficult economic scenario due to rising housing expenses. As the demand for housing increases, the goal of having a home in Kampala is becoming more expensive.

The Kampala real estate market has seen a significant price increase, making owning difficult for locals.

Numbeo’s price-to-income ratio, which puts Kampala as the most costly city, emphasizes this. The price-to-income ratio is a technique that demonstrates the relationship between the current market value of the dwelling unit that a household wishes to purchase and the household’s total yearly income.

The formula used by Numbeo to calculate this index is as follows: the ratio of median apartment costs to median familial disposable income, given as years of income. Net disposable family income is 1.5 times the average net pay (assuming 50% female labor force participation). The average apartment size is 90 square meters, and the price per square meter is the average price per square meter in and out of the city center.

According to this methodology, Kampala has the highest price-to-income ratio in the world by a wide margin. Kampala now has a price-to-income ratio of 79.4, followed by Shanghai, China at 49.3, and Douala, Cameroon in third place at 47.1.

Aside from Kampala, Douala, and Addis Ababa, no other African region has a price-to-income ratio greater than 40.Indexes for other top African cities range from 25.9 to 1.8.

Despite Numbeo’s report, Uganda’s economy has been operating admirably, with inflation falling from 10.4 percent in January to 2.4 percent in October, with each major component of the Consumer Price Index declining.

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