In the dynamic landscape of African real estate, the debate between renting and owning a home continues to garner attention. While renting offers short-term flexibility, the long-term advantages of homeownership are increasingly recognized across the continent.

The benefits of owning a home are manifold, ranging from financial security to asset appreciation. Homeownership provides individuals with a sense of stability and allows for personalization of living spaces. Additionally, owning a home promotes long-term residency and active participation in community life.

However, the decision to buy a home is not without its considerations. Factors such as property taxes and maintenance costs can deter prospective homeowners, leading many, including high net-worth individuals, to opt for renting as a safer alternative.

Despite these challenges, homeownership remains a symbol of success in many African regions, driving aspirations to become landlords. Moreover, in cities where rent costs are linked to inflation and can escalate rapidly, owning a home offers protection against such volatility through fixed-rate mortgages.

Furthermore, building equity in a property over time provides homeowners with a financial buffer and security that renting cannot offer. This investment in homeownership contributes to overall net worth and financial stability.

Certain African cities are particularly conducive to homeownership, where economic factors make it a more viable option than renting. As such, here are the top 5 major African cities where owning a home is deemed preferable to paying rent.

This list is based on Numbeo’s price-to-rent ratio, which is “the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside).

Lower values suggest that it is better to buy rather than rent, and higher values suggest that it is better to rent rather than buy.”

Top 5 major African cities where owning a home is better than paying rent