As reported by The AfrAsia Bank Africa Wealth Report, Cape Town, South Africa is the most expensive place to buy a house in Africa, followed by Durban, and Johannesburg all top three are in South Africa which comes as no surprise at all considering the fact that the country has one of the highest numbers of millionaires in Africa.
The AfrAsia Bank Africa Wealth Report 2018 provides insights gathered by AfrAsia and New World Wealth, on wealth trends in Africa over the past 10 years.
According to The AfrAsia Bank Wealth Report 2018, the below cities are the most expensive cities to buy residential properties in Africa
“As reflected, South African cities dominate the above list. It should, however, be noted that residential prices in South Africa are coming under strain as the threat of land redistribution begins to sink in. The ongoing drought in Cape Town has also had a negative impact on prices.” – AfrAsia
The 17 Most Expensive Cities to Buy a Home in Africa Include:
1. Cape Town (Bantry Bay and Clifton), South Africa – $6,100 Per Square Meter
The average price per square meter of property in Cape town is a whopping $6,100. This makes it significantly more expensive than anywhere in Africa and the best place to search for a property that offers true luxury.
2. Durban (Lagoon Drive in Umhlanga), South Africa – $2,900 Per Square Meter
The average price for residential property in Durban is $2900 per square meter. Making the city the second most expensive city to buy a home in Africa.
3. Johannesburg (Central Sandton), South Africa – $2,800 Per Square Meter
Johannesburg is one of the most beautiful cities in Africa and has many magnetically appealing features that attract people to live there. To buy a home in Johannesburg costs a whopping $2800 per square meter.
4. Nairobi, Kenya – $1,900 Per Square Meter
As the capital city of Kenya, Nairobi is an extremely desirable place to live. Headquarters of many major companies are based in this city. These is one of the factors that attract people to the city and drive up the prices. The price per square meter for property in London is approximately $1900.
5. Marrakesh, Morocco – $1,800 Per Square Meter
6. Tangier, Morocco – $1,800 Per Square Meter
7. Mombasa, Kenya – $1,700 Per Square Meter
The fact that the city is the second largest city in Africa no doubt has something to do with the price.
8. Luanda, Angola – $1,700 Per Square Meter
9. Casablanca, Morocco – $1,500 Per Square Meter
10. Accra, Ghana – $1,200 Per Square Meter
11. Lagos, Nigeria – $1,100 Per Square Meter
Nigerians want to live in Lagos for the work opportunities, People looking for investment opportunities are also attracted to this city. However, buying a property in Lagos prime areas can cost one about $1100 per square meter.
12. Abidjan, Ivory Coast – $1,000 Per Square Meter
13. Alexandria, Egypt – $1,000 Per Square Meter
14. Maputo, Mozambique – $900 Per Square Meter
15. Cairo, Egypt – $900 Per Square Meter
16. Kampala, Uganda – $800 Per Square Meter
It is important to note that the indices above only track the square meter prices achieved in selected prime 200 to 400 square meter apartments in each area,
The indices only focused on the most exclusive apartment complexes in each area (i.e. Prime).
The four main ways used to check price growth in the African cities Above include:
Transactional indices – these are normally compiled by major banks. They are based on the total/average value of purchases that go through the bank during a period. In our view, these are the least accurate – they are often restated heavily over time.
Average sales price indices – also normally compiled by major banks. These indices can be distorted by big sales (i.e. the sale of a mansion) during a particular month/quarter.
Repeat sales indices – this index is very accurate but difficult to compile over a short period of time or in a small area as it requires multiples sales on the same property.
Square meter price growth – we use this one. By focusing on sales in certain apartment complexes one can get an idea on how square meter prices are changing.