Top 5 major African cities offering the most affordable mortgages in mid-2024

In recent years, urbanization in Africa has increased at an unprecedented rate, resulting in significant expansion of Africa’s major cities. As the population grows and economic possibilities increase, the need for affordable housing has become critical.

In many African cities, the idea of owning a home remains unaffordable due to high property prices and loan interest rates.

One of the most important variables in meeting this need is the Affordable Mortgage Index, which measures how easily people can obtain a home loan.

By developing a favorable real estate loan index, governments and financial institutions could create an atmosphere in which more residents can qualify for loans and make monthly payments.

It goes without saying that affordable real estate financing greatly stimulates the local economy.

If residents of African cities were able to obtain loans to buy homes, this could lead to further economic growth by proliferating real estate services and strengthening the job market and housing infrastructure across the region.

Additionally, the affordable loan index reduces the risk of homelessness, as population growth threatens to outpace affordable housing in Africa, which is considered the fastest growing country.

The Loan Burden Index of Numbeo’s Property Value and Investment Index, on which this list is based, is designed to assess how affordable it is for an individual or family to take out and repay a mortgage in a particular country or city. This is an indicator.

The loan affordability index is the inverse of your mortgage as a percentage of your income. Numbeo’s formula is: (100 / Mortgage as a percentage of income) (the higher the better).

Instead, the mortgage to income ratio is calculated assuming a 20 year 100% mortgage on a 90 square meter house.

That being said, here are the African cities that offer the most affordable home loans.