South Africa ranks best in the world for people who want to own a house
International real estate brokers Best Brokers ranked South Africa as the most affordable country in which to purchase property.
However, despite this ranking, many South Africans still face barriers to property ownership, with access to financing and affordability topping the list.
International real estate brokers Best Brokers analysed housing markets across more than 60 countries, adjusting data for inflation to reflect real economic conditions.
Their findings show that South Africa ranks as the most affordable country to buy a home, with property prices exceeding average real wages by only 6.22%.
The rest of the countries on the list of affordable places for home buyers are mostly large and developed economies.
This makes it the best market globally in terms of cost-to-income ratio in comparison to other countries like Turkey, where property prices account for 81.45% of wages.
According to the report, Turkey is facing an inflation rate of over 61%, which severely diminishes purchasing power.
By comparison, South Africa maintains a much more balanced relationship between income and property prices.
Other countries that performed well include the United States, Bahrain, and Denmark, where higher per capita incomes help offset property costs.
For instance, although the United States has high property prices per square metre, high average real wages support broader homeownership.
However, South Africa’s top ranking on paper does not mean that all residents find it easy to buy a home.
Financial barriers remain a significant hurdle for many. According to the 2024 TPN Tenant Survey Report, 58% of South Africans said financial constraints were preventing them from purchasing property.
Additionally, the report further noted that 48.1% of South Africans stated they could not afford to buy a home.
Despite relatively low property prices, access to finance and credit also blocks many would-be homeowners from getting onto the property ladder.