International real estate brokers Best Brokers ranked South Africa as the most affordable country in which to purchase property, writes BusinessTech.
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 in which to buy a home, with property prices exceeding average real wages by only 6.22%.
The other countries on the list of affordable places for home buyers are mostly large and developed economies.
South Africa is the best market globally in terms of cost-to-income ratio, in comparison to countries like Turkey, where property prices account for 81.45% of wages.
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 countries where higher per capita incomes help offset property costs.
However, financial barriers remain a significant hurdle for many South Africans. Access to finance and credit also blocks many would-be homeowners from getting onto the property ladder.
Along with rising rental costs, debt repayments are also eating into income, with average repayment burdens increasing from 43.6% to 44.1%.
Additionally, 17% of tenants are currently behind on rent, prompting landlords to increase deposit requirements.
By the end of 2024, the average deposit had risen slightly to 1.31 times the monthly rent amount, compared to 1.29 a year earlier.