For real estate investors considering African cities, gross rental yield is still a crucial indicator. Investors must carefully analyze the economic, infrastructure, and regulatory landscapes of the markets they have selected, notwithstanding the substantial potential for large profits.
By doing this, businesses may reduce the hazards that come with increasing urban centers in Africa and take advantage of the benefits they bring.
Gross rental yield is calculated by taking the annual rental income of a property, dividing it by the property’s purchase price, and then multiplying the result by 100 to express it as a percentage.
This metric provides a snapshot of the potential return on investment (ROI) from rental income, excluding expenses such as maintenance, taxes, and management fees.
It goes without saying that the higher the gross rental yield, the better. A higher yield means more ROI for the landlord. With that said, here are the 5 best major African cities to become a landlord, according to Numbeo’s gross rental yield index.
| Rank | City | Country | Gross Rental Yield |
|---|---|---|---|
|
1. |
Port Elizabeth |
South Africa |
15.9 |
|
2. |
Durban |
South Africa |
11.1 |
|
3. |
Douala |
Cameroon |
10.3 |
|
4. |
Johannesburg |
South Africa |
9.7 |
|
5. |
Nairobi |
Kenya |
8.6 |
