Top 5 major African cities with the most expensive housing loans mid-2024

Urbanization in Africa has accelerated in recent years, resulting in considerable expansion in many African cities. As populations grows, there is a greater need for affordable housing. However, the affordability of housing loans could deter this development.

In numerous African cities, the dream of homeownership for some remains elusive, largely due to skyrocketing property prices and steep interest rates on loans.

These financial barriers prevent many individuals and families from qualifying for mortgages or managing monthly payments, exacerbating the housing crisis.

A low property loan index not only limits homeownership but also stifles local economic growth.

When residents struggle to secure loans for home purchases, there is a corresponding decline in economic activity, impacting the real estate market, job creation, and overall housing infrastructure in the region.

Moreover, with Africa recognized as the world’s fastest-growing population region, the inability to access affordable housing loans poses a significant risk of increasing homelessness.

The strain on existing housing stock intensifies as more people seek shelter in urban areas, further exacerbating the crisis.

The Loan Affordability Index utilized in Numbeo's Property Value and Investment Indexes measures how feasible it is for individuals or families to obtain and repay mortgage loans in specific cities.

This index is expressed as the inverse of the percentage of income that goes toward mortgage payments, where a higher score indicates better affordability.

According to Numbeo, the calculation is based on a hypothetical 100% mortgage for 20 years on a 90-square-meter home.

In summary, here are the African cities facing the greatest challenges with affordable housing loans.