The most expensive cities to live in Africa include Dakar(Senegal), Addis Ababa(Ethiopia) and Abidjan(Ivory Coast). The cost of living index in such expensive cities ranges between 30 and 50. These cities offer the ideal market for real estate investment.
Economic progress has made Nairobi one of the most expensive cities to live in Africa. With many multinationals choosing Nairobi as a place to set up shop, investing in commercial real estate is wise. AMG Realtors has an extensive listing of vacant properties in Nairobi that are fantastic for office and residential development. Besides Nairobi, there are other cities in Africa where you can live.
Which African city is the most expensive to live in currently?
Dakar, Senegal, is the most expensive city in Africa. The latest data on Statista lists Dakar's cost of living index at 47.2. Dakar is in the perfect location, and it has a rich history and an energetic art scene. Additionally, Dakar's flourishing economy has made it the West African hub for trade and investment.
Detailed Cost of Living Index in Africa
The cost of living can affect your income and quality of life. It can also affect which African cities you live and invest in. The cost of living in Africa in USD varies depending on the location.
You may live comfortably with about 1000 USD monthly in rural areas. This amount covers occasional trips to the city. However, if you wish to permanently live in an African urban area, you might require up to 3000 USD.
Factors that affect the cost of living include inflation and a country's economic policies. Additionally, the cost of essential goods and services determines a country's cost of living. Therefore, if people in your country have more money to spend, the high demand for goods can result in steep living costs.
The cost of living in Africa is currently high. For instance, in Nigeria, The president recently floated Nigeria's currency. Countries like Kenya and Angola are battling with high food and energy prices.
It would be best to consider the abovementioned factors when choosing which city to invest in. Investment in the real estate market in Nairobi is profitable. You have both the domestic and international populations as potential clients.
Here are the top ten African countries with the highest cost of living.
Rank | Country | Cost of Living Index | Rent Index | Cost of Living Plus Rent Index | Groceries Index | Restaurant Price Index | Local Purchasing Power Index |
1 | Senegal | 46.4 | 22.2 | 34.8 | 38.1 | 43.3 | 21.7 |
2 | Ivory Coast | 42.7 | 15.5 | 29.6 | 35.2 | 27.5 | 7.8 |
3 | Ethiopia | 42.3 | 17.1 | 30.2 | 34.3 | 19.7 | 11.6 |
4 | Mauritius | 42.2 | 10.9 | 27.2 | 41.6 | 32.3 | 30.8 |
5 | Zimbabwe | 40.8 | 11.5 | 26.7 | 35.0 | 32.5 | 18.7 |
6 | South Africa | 37.8 | 14.0 | 26.4 | 30.1 | 34.8 | 83.9 |
7 | Namibia | 35.8 | 11.8 | 24.3 | 30.9 | 39.1 | 51.3 |
8 | Botswana | 34.4 | 7.5 | 21.5 | 30.5 | 32.7 | 63.6 |
9 | Cameroon | 33.6 | 5.7 | 20.3 | 33.8 | 22.3 | 18.4 |
10 | Kenya | 32.4 | 7.8 | 20.6 | 29.8 | 27.0 | 32.8 |
Top 10 Most Expensive Cities in Africa 2024 explained
The cost of living in African countries is considerably lower than in other continents. For instance, Singapore is the most expensive city in the world as of March 2024. This city-state ties with Zurich in terms of cost of living.
The cost of living in Singapore is 100. This index is two times higher than that of the most expensive country in Africa. Even so, some African cities require a substantial amount to live comfortably. Here are the top 10 most expensive cities to live in Africa.
Dakar, Senegal
Dakar, Senegal, is the most expensive city in Africa. The cost of living index is 47.2 as of March 2024. Dakar is the capital of this French-speaking country.
The metropolitan population and the city's attractiveness to International NGOs and the UN explain the high cost of living. Additionally, Dakar boasts premium restaurants, entertainment centers, and accommodations. Dakar's vibrant history makes it a top tourist destination.
Moreover, Dakar facilitates shipping to and from Europe. The city's location and strong economy make it the West African commerce hub. Investing in Dakar's real estate market in 2024 would be highly profitable.
Addis Ababa, Ethiopia
Addis Ababa comes second on this list of the most expensive cities in Africa. The cost of living index is 44.2. Addis Ababa ranks high in the human development index. It is also the headquarters of the African Union.
Addis Ababa has a thriving fashion scene. Additionally, it has the fastest economic growth rates worldwide. You will love the vibrant history. For instance, this is where the former Emperor Haile Selassie resided.
There is a high demand for goods and services. Moreover, the city experiences restricted market access. These are some of the factors behind its high living costs.
Abidjan, Ivory Coast
The cost of living index in Abidjan is 43. Its nickname, "the Paris of West Africa," hints at why it's one of the most expensive places to live in Africa. Abidjan's port is the central hub for imports and raw materials leaving the country.
The economy is quickly growing. Additionally, Abidjan has modern social amenities, including fine dining and vibrant shopping malls. The cosmopolitan nature of Abidjan has impacted the cost of living.
Harare, Zimbabwe
Economic crises are behind Harare's expensive nature. The cost of living index is 41.3. The currency instability has significantly affected access to goods and services. The high cost of construction and taxes have resulted in overpriced properties.
Johannesburg, South Africa
Johannesburg is Africa's wealthiest city. The cost of living index is 40.5. Johannesburg has multiple sectors that contribute to the country's economy. These include mining and hospitality. Also, the world-class hotels and diverse culture make it an attractive destination.
Lagos, Nigeria
It is unsurprising to see Lagos on this list of most expensive cities. The cost of living index is 38.8. Lagos provides the largest market in Africa. It also has a significant political, financial, and educational influence in Africa.
Pretoria, South Africa
Pretoria is South Africa's administrative capital. The cost of living index is 37.7. It is a government hub that also boasts historical landmarks and game reserves. The costs of goods and services contribute to the city's high cost of living.
Gaborone, Botswana
Gaborone's cost of living index is 37.6. It is the capital where many come to seek jobs and better housing. The importation of essential goods and services is one of the reasons for Gaborone's high living costs.
Cape Town, South Africa
Cape Town has a cost of living index of 37.2. The land in Cape Town is expensive. As a result, the property market prices are higher than in Johannesburg. Food and other commodities are also costly.
Khartoum, Sudan
Khartoum's cost of living index is 37, a tie with Durban's. The country has suffered significant economic challenges. Moreover, the property market and food prices are high, hence the city's expensive nature.
Nairobi, Kenya
Statista places Nairobi as the 12th most expensive city in Africa. The city has a cost of living index of 34.6. The depreciation of the currency has affected commodity prices. Increased taxation has also affected the cost of living.
10 African cities with the most expensive real estate
Statista estimates that the African real estate market will reach $15.98tn by 2024. The platform also predicts that residential development will dominate this market. Ten African cities will experience the highest real estate boom.
Numbeo tracks property prices across Africa. The platform's latest report lists the cities with the most expensive real estate. The table below shows the price-to-income ratio. Note that the lower the ratio, the more affordable it is to invest in the city's real estate market.
Rank | City | Price-to-income ratio | Global rank |
1. | Douala, Cameroon | 48.3 | 1st |
2. | Addis Ababa, Ethiopia | 45.2 | 24th |
3. | Algiers, Algeria | 24.0 | 5th |
4. | Alexandria, Egypt | 18.9 | 33rd |
5. | Cairo, Egypt | 17.7 | 43rd |
6. | Rabat, Morocco | 16.8 | 50th |
7. | Casablanca, Morocco | 15.8 | 57th |
8. | Tunis, Tunisia | 15.1 | 66th |
9. | Nairobi, Kenya | 11.1 | 128th |
10. | Cape Town, South Africa | 5.4 | 202nd |
FAQS for Most expensive cities to live in Africa
Where is the most expensive city in Africa?
Dakar is the most expensive city in Africa, with a cost of living index of 47.2.
What are the richest cities in Africa?
Johannesburg, Lagos, Nairobi, Casablanca, Pretoria, Luanda, Accra, and Durban are the wealthiest cities in Africa.
Which country in Africa is the most expensive?
Senegal is the most expensive country due to Dakar's high cost of living index.
What is the city of luxury in Africa?
Cape Town is the finest African city, boasting wineries, landmarks, ocean vistas, and natural wonders.
There you go, a comprehensive list of the most expensive cities to live in Africa. If you wish to invest in Nairobi's real estate market, AMG Realtors has got you covered. Contact the team at +254 796 888 555 today.