As of January 2025, the African cities with the most expensive rental markets are:
1. Johannesburg, South Africa
Cost of Living Index: 38.4
Overview: Johannesburg, South Africa’s economic hub, leads the continent in rental costs. Its status as a major financial center, hosting numerous multinational corporations, attracts a diverse population, driving up demand and, consequently, rental prices.
2. Pretoria, South Africa
Cost of Living Index: 35.3
Overview: As the administrative capital, Pretoria’s concentration of government institutions and diplomatic missions contributes to high living expenses, particularly in housing.
3. Cape Town, South Africa
Cost of Living Index: 35.2
Overview: Renowned for its natural beauty and vibrant cultural scene, Cape Town’s desirability as a tourist destination and lifestyle hub leads to elevated rental costs.
4. Lagos, Nigeria
Cost of Living Index: 35.1
Overview: As Nigeria’s commercial capital and one of the fastest-growing cities globally, Lagos experiences significant demand for housing, resulting in high rental prices.
5. Durban, South Africa
Cost of Living Index: 32.9
Overview: Known for its pleasant climate and coastal lifestyle, Durban’s appeal has led to increased demand for housing, driving up rental costs.
These rankings are based on the Cost of Living Index, which reflects the relative cost of consumer goods, including groceries, restaurants, transportation, and utilities, but excludes rent. However, high living costs in these cities are indicative of expensive rental markets.
It’s noteworthy that four out of the top five cities are in South Africa, highlighting the country’s significant urban living expenses. Factors contributing to high rental costs in these cities include economic opportunities attracting a diverse workforce, limited housing supply, and the desirability of lifestyle and amenities.
For individuals considering relocation or investment in Africa, understanding these dynamics is crucial for making informed decisions regarding housing affordability and overall living expenses.
