Top African Cities with High Rental Yields in 2024


Africa is increasingly becoming a hotspot for real estate investors seeking high rental yields. With rapid urbanization, economic growth, and a burgeoning middle class, several African cities offer promising returns on property investments. This article explores the top African cities with the highest rental yields in 2024, providing insights into why these locations are prime targets for real estate investment.

Why Invest in African Real Estate?

Investing in African real estate is attractive for several reasons:

High Rental Yields

Many African cities offer higher rental yields compared to global averages, making them lucrative for investors. High rental yields indicate a good return on investment, ensuring that property owners can recoup their investment relatively quickly (JLL, 2020).

Economic Growth

Africa’s economy is growing, leading to increased demand for housing and commercial spaces. Countries like Kenya, Nigeria, and Ghana are experiencing significant economic development, which translates into more opportunities for real estate investments (World Bank, 2020).


Rapid urbanization drives demand for rental properties as more people move to cities for employment and better living standards. As urban populations increase, the demand for rental housing soars, providing a steady stream of potential tenants (UN-Habitat, 2020).

Favorable Demographics

A young and growing population ensures sustained demand for rental properties. Africa has one of the youngest populations in the world, and as this demographic seeks employment and housing in urban areas, the demand for rental properties is set to increase (African Development Bank, 2019).

Best Cities for Rental Yields in Africa

Here are some of the top cities in Africa that offer high rental yields:

1. Nairobi, Kenya

Nairobi, the capital city of Kenya, is a leading real estate investment destination in Africa.

Rental Yield: Nairobi offers an average rental yield of 7-8%, which is significantly higher than many other cities worldwide (Knight Frank, 2021).

Market Insights: The city’s robust economy, growing expat community, and status as a regional business hub drive demand for rental properties. Nairobi’s strategic importance as East Africa’s financial and communication hub makes it an attractive destination for expatriates and international businesses (World Bank, 2020).

Key Areas: Kilimani, Westlands, and Upper Hill are popular neighborhoods with high rental yields. Kilimani is known for its luxury apartments and proximity to major amenities, while Westlands is a commercial and residential hotspot that attracts young professionals. Upper Hill hosts numerous corporate headquarters and embassies, making it ideal for high-end rentals (JLL, 2020).

2. Lagos, Nigeria

Lagos, Nigeria’s commercial capital, is another city with excellent rental returns.

Rental Yield: Investors can expect rental yields of 6-7% in Lagos. This is bolstered by the city’s position as the economic nerve center of Nigeria (Knight Frank, 2021).

Market Insights: With a booming population and the presence of multinational companies, Lagos offers high demand for both residential and commercial rentals. The influx of businesses and expatriates has led to a surge in demand for quality housing and office spaces (World Bank, 2020).

Key Areas: Victoria Island, Ikoyi, and Lekki are prime areas with significant rental income potential. Victoria Island and Ikoyi are known for their upscale residential properties, while Lekki is a rapidly developing area with modern infrastructure and facilities (JLL, 2020).

3. Accra, Ghana

Accra, the capital of Ghana, has seen a surge in real estate investment in recent years.

Rental Yield: Accra provides rental yields of 7-8%, making it an attractive destination for investors looking for high returns (Knight Frank, 2021).

Market Insights: A stable political environment, economic growth, and a rising middle class make Accra attractive for property investors. The government’s efforts to improve infrastructure and promote foreign investment have also contributed to the city’s real estate boom (World Bank, 2020).

Key Areas: Airport Residential Area, Cantonments, and East Legon are highly sought after for their rental returns. These neighborhoods offer high-end properties and are favored by expatriates and affluent locals (JLL, 2020).

4. Cape Town, South Africa

Cape Town is known for its picturesque landscapes and vibrant real estate market.

Rental Yield: Rental yields in Cape Town range from 6-8%, supported by strong demand from both local and international tenants (Knight Frank, 2021).

Market Insights: Tourism, a growing expat community, and an active local market contribute to the city’s strong rental demand. Cape Town’s scenic beauty, coupled with its high quality of life, attracts a steady stream of tourists and expatriates (World Bank, 2020).

Key Areas: Sea Point, Camps Bay, and City Bowl are popular neighborhoods with high rental yields. Sea Point and Camps Bay are renowned for their luxury beachfront properties, while City Bowl offers a mix of residential and commercial spaces in the heart of the city (JLL, 2020).

5. Casablanca, Morocco

Casablanca, Morocco’s economic hub, offers promising rental yields for investors.

Rental Yield: Casablanca’s rental yields are around 6-7%, making it a competitive market for real estate investment (Knight Frank, 2021).

Market Insights: As the business center of Morocco, Casablanca attracts both local and international tenants, driving demand for rental properties. The city’s strategic location on the Atlantic coast and its status as a major port city enhance its appeal to investors (World Bank, 2020).

Key Areas: Anfa, Maarif, and Gauthier are prime locations with high rental returns. Anfa is known for its luxury villas, Maarif is a bustling commercial district, and Gauthier offers a mix of residential and commercial properties (JLL, 2020).

Other Notable Cities

6. Dar es Salaam, Tanzania

Dar es Salaam is Tanzania’s largest city and economic hub, offering strong rental yields.

Rental Yield: Rental yields in Dar es Salaam range from 6-7% (Knight Frank, 2021).

Market Insights: The city’s growing economy and port activities make it a crucial commercial center, attracting business professionals who seek rental housing. The city’s strategic importance as a gateway to East Africa and its role in international trade drive demand for real estate (World Bank, 2020).

Key Areas: Upanga, Masaki, and Oyster Bay are popular neighborhoods for high-end rentals. These areas are known for their upscale properties, proximity to amenities, and attractive living environments (JLL, 2020).

7. Kigali, Rwanda

Kigali, the capital of Rwanda, is gaining attention for its real estate market.

Rental Yield: Kigali offers rental yields of 7-8% (Knight Frank, 2021).

Market Insights: The city’s clean, safe, and organized environment, along with favorable business policies, make it attractive for expatriates and investors. Kigali’s focus on sustainable development and smart city initiatives further enhances its real estate appeal (World Bank, 2020).

Key Areas: Nyarutarama, Kacyiru, and Kimihurura are preferred areas for high rental returns. These neighborhoods are known for their high-quality residential properties, security, and accessibility to business districts (JLL, 2020).

8. Abidjan, Ivory Coast

Abidjan, the economic capital of Ivory Coast, is another city with promising rental yields.

Rental Yield: Abidjan provides rental yields of 6-7% (Knight Frank, 2021).

Market Insights: The city’s thriving economy and role as a commercial hub in West Africa drive demand for rental properties. Abidjan’s dynamic business environment, coupled with its cultural and economic significance, makes it a prime location for real estate investment (World Bank, 2020).

Key Areas: Cocody, Marcory, and Plateau are key neighborhoods with high rental demand. These areas are known for their modern infrastructure, vibrant communities, and proximity to commercial and administrative centers (JLL, 2020).

Tips for Maximizing Rental Income in Africa

To maximize rental income in African cities, consider the following tips:

Research the Market

Understand the local real estate market, including demand trends and rental rates. Conduct thorough research on the economic indicators, population growth, and housing needs in the city you are interested in (Knight Frank, 2021).

Choose Prime Locations

Invest in areas with high demand, good infrastructure, and amenities. Properties in prime locations tend to have higher occupancy rates and command premium rents. Focus on neighborhoods that are popular with expatriates and middle to upper-class tenants (JLL, 2020).

Quality Property Management

Employ reliable property management services to maintain the property and handle tenant relations. Good property management ensures that your property remains in excellent condition and tenants are satisfied, leading to longer lease terms and reduced vacancy rates (Knight Frank, 2021).

Understand Legalities

Familiarize yourself with local property laws and regulations to ensure compliance and protect your investment. Each country has its own set of rules regarding property ownership, taxation, and tenant rights, so it is crucial to understand these before investing (World Bank, 2020).

Diversify Investments

Consider diversifying your property portfolio across different cities and property types to mitigate risks. Diversification helps spread risk and ensures that your income is not dependent on a single market. Investing in a mix of residential, commercial, and industrial properties can provide a balanced portfolio (Knight Frank, 2021).

Leverage Technology

Use online platforms and tools to market your property and attract tenants. Listing your property on popular real estate websites and using social media can increase visibility and reach a wider audience. Virtual tours and high-quality photos can also enhance your property’s appeal (JLL, 2020).

Stay Updated

Keep abreast of economic and market trends that could impact rental demand and property values. Regularly review your investment strategy and make adjustments based on market conditions. Staying informed about local and global economic developments can help you make proactive investment decisions (Knight Frank, 2021).


Investing in African real estate offers significant opportunities for high rental yields. Cities like Nairobi, Lagos, Accra, Cape Town, and Casablanca stand out as prime destinations for property investment in 2024. Additionally, Dar es Salaam, Kigali, and Abidjan are emerging markets worth considering. By conducting thorough research, choosing prime locations, and employing effective property management, investors can maximize their rental income and benefit from the growing real estate market in Africa.

The continent’s economic growth, urbanization, and favorable demographics make it an attractive destination for real estate investors. As with any investment, due diligence and strategic planning are crucial to achieving success in the African property market.


African Development Bank. (2019). Africa’s Economic Outlook. Retrieved from

JLL. (2020). Real Estate Market Overview. Retrieved from

Knight Frank. (2021). Africa Report 2021: Real Estate Market Insight. Retrieved from

UN-Habitat. (2020). World Cities Report 2020: The Value of Sustainable Urbanization. Retrieved from

World Bank. (2020). Doing Business 2020: Comparing Business Regulation in 190 Economies. Retrieved from

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