Today in History: Accra ranked second most expensive city in the world for property to income ratio

A 2021 research showed that Ghana's capital city, Accra, was the second most expensive in terms of property rates to income ratio.

The research conducted by Numbeo showed Accra was ahead of Hong Kong (Hong Kong), Shenzhen (China), Moscow (Russia), and Paris (France), among other cities in the world.

"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 survey stated.

Read the full story originally published on October 22, 2021 by GhanaWeb

• Accra has the world's highest Mortgage percentage income ratio

• A research survey conducted by Numbeo has revealed

• It is also more costly to access loans in Accra

A research survey has ranked Accra, Ghana's capital city as the second most expensive with regard to property price to income ratio.

The research conducted by Numbeo showed Accra was ahead of Hong Kong (Hong Kong), Shenzhen (China), Moscow (Russia), Paris (France) among other cities in the world.

The survey further revealed that Accra has the world's highest Mortgage percentage income ratio. This was however followed by Buenos Aires (Argentina) and Tehran (Iran) in second and third place, respectively.

"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 survey explained.

The Numbeo survey also ranked Accra as the city with the lowest loan affordability in the world.

"Loan Affordability Index is an inverse of mortgage as a percentage of income," the survey pointed. This however means access to loans in Accra is much costlier compared to other cities such as Lagos (Nigeria), Kabul (Afghanistan), Sao Paolo (Brazil) and Stockholm (Sweden).

The Numbeo survey calculated the ratio of median apartment prices to median familial disposable income, expressed as years of income.

Numbeo is a crowd-sourced global database of reported consumer prices, perceived crime rates, health care quality, and other statistics.

For 2021, it has thus far collected data from 482 cities across the world.