- Business Insider Africa presents African countries with the best property value.
- This list is courtesy of Numbeo, which uses price to income ratio among other metrics to determine its Property Prices Index.
- Numbeo utilizes an elaborate algorithm to determine its property price index.
The decision of residency is significantly determined by the price of real estate in any given region. Where a person decides to live is heavily influenced by the cost of housing in comparison to other factors such as income, security, and property appreciation.
This is why the significance of data on property value cannot be over-emphasized. Property prices have influenced careers and other critical life decisions.
As a result, Numbeo, a Serbian crowd-sourced global database of perceived consumer prices, crime rates, and healthcare quality, among other facts, examines property value globally.
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According to Numbeo, the basic metric of the Property Prices Index is the Price to Income Ratio (lower is better). It is commonly measured as the ratio of median apartment costs to median family disposable income expressed in years of earnings.
Part of Numbeo’s methodology is the ratio of the actual monthly cost of the mortgage to take-home family income (lower is better). The average monthly salary is used to estimate family income. It assumes a 100% mortgage is taken on 20 years for the house(or apt) of 90 square meters which price per square meter is the average price in and outside of the city center.
Other metrics are used to determine its Property Prices Index such as rent per square meter, which assumes a 1-bedroom apt has 50 square meters and a 3-bedroom apartment has 110 square meters, not taking into account taxes or maintenance fees. There is also Gross Rental Yield is the total yearly gross rent divided by the house price (expressed in percentages). Higher is better. All of these are available in the full report.
On this note, some regions naturally have higher valued apartments than others, and below are the African countries according to Numbeo’s Property Prices Index, with the best property value. In Numbeo’s report, 107 countries were ranked.
Source: Numbeo
