SA ranked as most affordable country to buy property
International real estate brokers Best Brokers has ranked SA as the most affordable country in the world to buy property.
South Africa has been ranked as the most affordable country in the world to purchase property, according to international real estate brokers Best Brokers.
The country's housing market boasts a cost-to-income ratio that is unmatched globally, with property prices exceeding average real wages by only 6.22%.
This ranking is based on an analysis of housing markets across more than 60 countries, adjusting data for inflation to reflect real economic conditions, reports BusinessTech.
The cost-to-income ratio is a critical factor in determining the affordability of housing in a particular country. In South Africa's case, the ratio is remarkably low, making it an attractive destination for potential homeowners.
Despite South Africa's top ranking in terms of affordability, many residents still face significant barriers to property ownership.
Financial constraints are a major hurdle, with 58% of South Africans citing lack of access to finance and credit as a significant obstacle to buying a home.
The 2024 TPN Tenant Survey Report reveals that 48.1% of South Africans believe they cannot afford to buy a home, highlighting the complexity of the issue.
The rental market in South Africa is also experiencing significant pressure, with rising rental costs and decreasing vacancy rates. The average rent has reached a record high of R9,051, representing a 5.2% year-on-year increase.
As rental prices climb, many individuals are forced to remain in the rental market for longer, making it challenging to save for a home.
Rent now accounts for 28.7% of household income in South Africa, further squeezing household budgets.
Rental prices vary widely across South Africa's provinces, with the Western Cape being the most expensive at an average rental price of R11,141. In contrast, the North West is the most affordable at R6,798. The Free State and Eastern Cape have seen strong rental growth, while Gauteng has experienced a more modest 3.4% rise in rental costs.
The rental market is tightening nationally, with South Africa's vacancy rate dropping from 6.72% in 2024 to 5.07% in 2025. This gives landlords more pricing power and may lead to further price hikes if rental stock fails to keep pace with demand.
While South Africa's housing market is ranked as the most affordable globally, many residents still face significant challenges in accessing property ownership.
Addressing these challenges will require a multifaceted approach that includes improving access to finance and credit, as well as implementing policies that promote affordable housing.
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