Which cities across the globe have the highest price tag on their property market? Compared to income levels, which cities all over the world are the most expensive to live in?
What do the statistics say about Accra, the capital city of Ghana being the most expensive city in the world coming right behind war-torn Damascus, Syria
Ghana’s capital city, Accra, is the second most expensive city in the world in terms of the property price to income ratio, according to Numbeo.
Numbeo, a crowd-sourced global database of reported consumer prices, perceived crime rates, quality of health care, and other statistics, explained that the Price to Income Ratio is the basic measure for apartment purchase affordability.
This comes amidst agitations about the city’s high cost of property prices, contributing to the #FixTheCountry Movement.
Ranking of world’s most expensive cities
|Rank||City||Price To Income Ratio|
|4||Colombo, Sri Lanka||48.76|
|5||Hong Kong, Hong Kong||47.35|
|12||Buenos Aires, Argentina||33.52|
|13||Seoul, South Korea||32.32|
|14||Phnom Penh, Cambodia||32.11|
|16||Ho Chi Minh City, Vietnam||30.58|
|19||Rio de Janeiro, Brazil||27.61|
|20||Addis Ababa, Ethiopia||27.6|
In the United States of America, Memphis is the most affordable city per property price to income ratio in the world.
Numbeo also revealed that Accra has the world’s highest Mortgage percentage income ratio, followed closely by Buenos Aires (Argentina) and Tehran (Iran) in second and third place, respectively.
Mortgage as Percentage of Income is a ratio of the actual monthly cost of the mortgage to take-home family income.
“Average monthly salary is used to estimate family income. It assumes 100% mortgage is taken on 20 years for the house (or apt) of 90 square meters which price per square meter is the average price in the city centre and outside of city centre,” the site explained.
Ranking the top 20 cities with the highest mortgages as a percentage of income figures
|Rank||City||Mortgage as % of Income|
|2||Buenos Aires, Argentina||1499.59|
|5||Colombo, Sri Lanka||625.3|
|7||Isfahan (Esfahan), Iran||469.8|
|8||Addis Ababa, Ethiopia||457.72|
|12||Phnom Penh, Cambodia||371.8|
|17||Ho Chi Minh City, Vietnam||337.76|
Memphis once again had the lowest Mortgage as a percentage of income to ratio.
Meanwhile, Accra has the lowest loan affordability in the world.
“Loan Affordability Index is an inverse of mortgage as a percentage of income,” the site said.
Ranking the top 20 least affordable cities in the world
|3||Buenos Aires, Argentina||0.07|
|5||Colombo, Sri Lanka||0.16|
|7||Isfahan (Esfahan), Iran||0.21|
|8||Addis Ababa, Ethiopia||0.22|
|12||Phnom Penh, Cambodia||0.27|
|17||Ho Chi Minh City, Vietnam||0.3|
|20||Rio de Janeiro, Brazil||0.33|
Numbeo is a crowd-sourced global database of reported consumer prices, perceived crime rates, health care quality, and other statistics.
This year it collected data from 482 cities across the world.
Property Price to Income Ratio
Price to Income Ratio is the basic measure for apartment purchase affordability (lower is better). It is generally calculated as the ratio of median apartment prices to median familial disposable income, expressed as years of income (although variations are used also elsewhere). Our formula assumes and uses:
- net disposable family income, as defined as
1.5 * the average net salary(50% is assumed percentage of women in the workforce)
- median apartment size is 90 square meters
- price per square meter (the formula uses) is the average price of square meter in the city center and outside of the city center