Top 5 Most Profitable Cities in Africa to Become a Landlord in Mid-2024

Gross rental income is an important metric for real estate investors as it measures the profitability of rental properties. In Africa, where the real estate market is diverse and dynamic, gross rental income is becoming increasingly important as investors try to navigate the continent’s diverse economic climates.

The gross rental yield is calculated by dividing the annual rental income of a property by the purchase price and multiplying the result by 100 to obtain the percentage.

This metric represents the potential return on investment (ROI) from rental income, minus expenses such as maintenance, taxes and management fees.

It goes without saying that a higher gross rental yield is desirable. A higher yield means a higher ROI for the landlord. With that in mind, here are the top 5 African major cities to become a landlord, according to Numbeo’s updated half-year gross rental yield index.

It is also important to note that for this list, Numbeo ranks major cities, particularly economic hubs across Africa, rather than the entire continent.