Gross rental yield continues to be an important indicator for real estate investors looking at African cities. While substantial profits are possible, investors must carefully analyze their preferred markets’ economic, infrastructure, and regulatory environments.
This allows them to capitalize on the benefits given by Africa’s expanding urban centers while reducing accompanying hazards.
As Africa’s cities continue to urbanize and grow, they provide exciting opportunities for knowledgeable real estate investors prepared to manage the intricacies of these dynamic surroundings.
The formula for calculating gross rental yield involves dividing the yearly rental revenue by the property’s purchase price. The resulting number is then multiplied by 100 to represent the percentage.
With subtracted maintenance, taxes, and management fees, this statistic gives a quick overview of the possible return on investment (ROI) from rental revenue.
Naturally, the better off you are with a larger gross rental return. A larger yield increases the landlord’s return on investment. With that said, here are the top 5 major African cities with the lowest gross rental yield, according to Numbeo’s gross rental yield index.
Rank | City | Country | Gross Rental Yield |
---|---|---|---|
1. |
Algiers |
Algeria |
2.5 |
2. |
Rabat |
Morocco |
5.0 |
3. |
Tunis |
Tunisia |
5.1 |
4. |
Casablanca |
Morocco |
5.8 |
5. |
Alexandria |
Egypt |
5.9 |