2026-02-25 · NextMigrate Team
Where in the World Can You Actually Afford a House on a Normal Salary?
There is a question that haunts every professional in their late twenties and thirties, regardless of where they live: will I ever be able to buy a house? In Lagos, Mumbai, Manila, Cairo, and Karachi, the answer feels increasingly like no, despite the common assumption that property in developing countries is "cheap."
And here is the part that surprises most people: when you compare house prices not in absolute terms but relative to what people actually earn, some developing-country cities are less affordable than cities in Canada, Australia, Germany, or New Zealand. The house might cost less in nominal dollars, but your salary is so much lower — and mortgage access so much worse — that homeownership is actually harder to achieve.
This article breaks down the real numbers. Not the fantasy of "property is cheap in Africa" or "just save and buy." The actual math of house price-to-income ratios, mortgage availability, down payment requirements, and what it truly takes to own a home as a normal salaried professional.
The Price-to-Income Ratio: The Only Number That Matters
Forget the sticker price of a house. It is meaningless without context. A $50,000 house in Lagos and a $500,000 house in Toronto might feel like different universes of affordability, but the only question that matters is: how many years of your salary does it take to buy it?
This is the price-to-income ratio, and it is the most honest measure of housing affordability in the world.
House Price-to-Income Ratios by City (2026)
The following table compares the price of a modest 3-bedroom house or apartment in a decent (not luxury, not slum) neighborhood to the annual gross salary of a mid-level professional.
| City | Median Property Price (USD) | Mid-Level Annual Salary (USD) | Price-to-Income Ratio | Years of Gross Salary to Buy |
|---|---|---|---|---|
| Lagos (Lekki/Ajah) | $85,000 | $9,700 | 8.8x | 8.8 years |
| Mumbai (Suburbs) | $180,000 | $17,600 | 10.2x | 10.2 years |
| Manila (Metro) | $120,000 | $12,600 | 9.5x | 9.5 years |
| Cairo (New Cairo) | $62,000 | $7,200 | 8.6x | 8.6 years |
| Karachi (DHA) | $75,000 | $8,400 | 8.9x | 8.9 years |
| Toronto | $620,000 | $61,600 | 10.1x | 10.1 years |
| Sydney | $780,000 | $69,500 | 11.2x | 11.2 years |
| Melbourne | $580,000 | $65,000 | 8.9x | 8.9 years |
| London | $550,000 | $56,000 | 9.8x | 9.8 years |
| Dubai | $340,000 | $71,900 | 4.7x | 4.7 years |
| Berlin | $320,000 | $52,000 | 6.2x | 6.2 years |
| Auckland | $520,000 | $42,000 | 12.4x | 12.4 years |
| Calgary | $420,000 | $65,000 | 6.5x | 6.5 years |
| Adelaide | $480,000 | $60,000 | 8.0x | 8.0 years |
| Ottawa | $480,000 | $62,000 | 7.7x | 7.7 years |
| Perth | $500,000 | $68,000 | 7.4x | 7.4 years |
| Brisbane | $560,000 | $63,000 | 8.9x | 8.9 years |
Look at these numbers carefully. Lagos has a price-to-income ratio of 8.8x. Melbourne has 8.9x. They are essentially the same. Mumbai at 10.2x is less affordable than London at 9.8x. Manila at 9.5x is comparable to Brisbane at 8.9x.
The "property is cheap in developing countries" narrative collapses when you look at affordability instead of price.
And several developed-country cities are meaningfully more affordable than the developing-country cities. Dubai at 4.7x, Berlin at 6.2x, Calgary at 6.5x, and Perth at 7.4x all beat Lagos, Mumbai, Manila, Cairo, and Karachi on the ratio that actually matters.
But It Gets Worse: The Mortgage Reality
The price-to-income ratio alone does not capture the full picture. In most developed countries, a mortgage is a standard, accessible financial product. In many developing countries, it is either unavailable, prohibitively expensive, or both.
Mortgage Conditions by Country
| Country | Typical Mortgage Rate | Maximum Term | Down Payment Required | % of Population With Mortgage Access |
|---|---|---|---|---|
| Nigeria | 18-28% | 10-15 years | 20-30% | ~3% |
| India | 8.5-10% | 20-30 years | 10-20% | ~10% |
| Philippines | 6-9% | 15-25 years | 10-20% | ~5% |
| Egypt | 12-20% | 15-20 years | 15-25% | ~4% |
| Pakistan | 14-22% | 10-15 years | 20-30% | ~2% |
| Canada | 4.5-6.5% | 25-30 years | 5-20% | ~45% |
| Australia | 5.5-7% | 25-30 years | 5-20% | ~40% |
| UK | 4-6% | 25-35 years | 5-15% | ~35% |
| Germany | 3.5-5% | 20-30 years | 10-20% | ~30% |
| UAE | 3.5-5.5% | 25 years | 20-25% | ~25% |
| New Zealand | 5.5-7% | 25-30 years | 10-20% | ~35% |
The difference is staggering. A Nigerian professional seeking a mortgage faces a 18-28% interest rate with a maximum term of 10-15 years. A Canadian professional gets 4.5-6.5% over 25-30 years. This difference transforms everything about affordability.
What a Mortgage Actually Costs: Monthly Payments Compared
Let us say you buy a property worth $100,000 (adjusted for each city — meaning a modest property relative to local standards). You put down 20% ($20,000) and finance the remaining $80,000.
| Country | Loan Amount | Interest Rate | Term | Monthly Payment (USD) | Total Interest Paid |
|---|---|---|---|---|---|
| Nigeria | $80,000 | 22% | 12 years | $1,580 | $147,520 |
| India | $80,000 | 9.5% | 25 years | $699 | $129,700 |
| Philippines | $80,000 | 7.5% | 20 years | $644 | $74,560 |
| Egypt | $80,000 | 16% | 15 years | $1,180 | $132,400 |
| Pakistan | $80,000 | 18% | 12 years | $1,448 | $128,512 |
| Canada | $80,000 | 5.5% | 25 years | $489 | $66,700 |
| Australia | $80,000 | 6% | 30 years | $480 | $92,800 |
| UK | $80,000 | 5% | 30 years | $429 | $74,440 |
| Germany | $80,000 | 4% | 25 years | $422 | $46,600 |
| UAE | $80,000 | 4.5% | 25 years | $445 | $53,500 |
A Nigerian professional pays $1,580 per month on an $80,000 loan. A Canadian professional pays $489 for the same amount. But the Nigerian professional earns $808 per month. The Canadian earns $3,742. The Nigerian mortgage payment is 195% of their monthly salary — literally impossible. The Canadian payment is 13% of salary — very comfortable.
This is why mortgage penetration in Nigeria is roughly 3%. It is not that people do not want to buy homes. It is that the financial products available make it mathematically impossible for almost everyone.
The Down Payment Problem
Even before you get to the mortgage, you need to save the down payment. Let us calculate how long it takes to save a 20% down payment on a modest property.
Years to Save a 20% Down Payment
| City | Property Price | 20% Down Payment | Monthly Savings Capacity | Months to Save | Years to Save |
|---|---|---|---|---|---|
| Lagos | $85,000 | $17,000 | ~$0 (deficit) | Never | Never |
| Mumbai | $180,000 | $36,000 | ~$350 | 103 | 8.6 years |
| Manila | $120,000 | $24,000 | ~$200 | 120 | 10.0 years |
| Cairo | $62,000 | $12,400 | ~$0 (deficit) | Never | Never |
| Karachi | $75,000 | $15,000 | ~$50 | 300 | 25.0 years |
| Toronto | $620,000 | $124,000 | ~$1,160 | 107 | 8.9 years |
| Sydney | $780,000 | $156,000 | ~$1,472 | 106 | 8.8 years |
| Dubai | $340,000 | $68,000 | ~$2,637 | 26 | 2.2 years |
| Berlin | $320,000 | $64,000 | ~$1,200 | 53 | 4.4 years |
| Calgary | $420,000 | $84,000 | ~$1,800 | 47 | 3.9 years |
| Adelaide | $480,000 | $96,000 | ~$1,600 | 60 | 5.0 years |
| Perth | $500,000 | $100,000 | ~$1,700 | 59 | 4.9 years |
In Lagos and Cairo, a mid-level professional cannot save for a down payment at all because their monthly expenses exceed their income. In Karachi, it would take 25 years to save the down payment alone — and by then, the property price will have increased multiple times over.
Meanwhile, a professional in Dubai can save a full down payment in about 2 years. Calgary, Berlin, Adelaide, and Perth all allow down payment savings within 4-5 years.
The Cities Most People Overlook
The housing affordability conversation often focuses on the most expensive cities in destination countries — Toronto, Sydney, London, Auckland. And yes, those cities have severe affordability problems.
But there are plenty of cities in developed countries with strong job markets and genuinely affordable housing that professionals from developing countries rarely consider.
Hidden Gems: Affordable Cities With Strong Job Markets
| City | Country | Mid-Level Salary (USD) | 3-Bed Property Price (USD) | Price-to-Income | Down Payment Years | Notable Industries |
|---|---|---|---|---|---|---|
| Calgary | Canada | $65,000 | $420,000 | 6.5x | 3.9 | Oil & gas, tech, finance |
| Ottawa | Canada | $62,000 | $480,000 | 7.7x | 5.2 | Government, tech |
| Edmonton | Canada | $63,000 | $370,000 | 5.9x | 3.5 | Energy, healthcare, construction |
| Adelaide | Australia | $60,000 | $480,000 | 8.0x | 5.0 | Defense, health, manufacturing |
| Perth | Australia | $68,000 | $500,000 | 7.4x | 4.9 | Mining, construction, engineering |
| Brisbane | Australia | $63,000 | $560,000 | 8.9x | 5.6 | Professional services, tech |
| Berlin | Germany | $52,000 | $320,000 | 6.2x | 4.4 | Tech, startups, creative |
| Hamburg | Germany | $55,000 | $350,000 | 6.4x | 4.5 | Maritime, media, engineering |
| Christchurch | New Zealand | $40,000 | $340,000 | 8.5x | 6.8 | Construction, engineering |
| Dubai | UAE | $71,900 | $340,000 | 4.7x | 2.2 | Finance, tech, construction |
| Abu Dhabi | UAE | $68,000 | $310,000 | 4.6x | 2.1 | Energy, government, tech |
Edmonton at 5.9x, Abu Dhabi at 4.6x, and Dubai at 4.7x stand out as remarkably affordable for professionals earning good salaries. These are cities where homeownership is genuinely achievable within a few years of dedicated saving.
The Generational Wealth Equation
Homeownership is not just about having a place to live. It is the primary wealth-building mechanism for middle-class families worldwide. When you own a home, you build equity. When you rent, your monthly payment builds someone else's equity.
20-Year Wealth Comparison: Renter vs. Owner
Let us compare two Nigerian-origin professionals, both moving abroad at age 30:
Professional A moves to Toronto, rents for 5 years while saving, then buys a condo. Professional B stays in Lagos, rents indefinitely because homeownership is inaccessible.
| Metric | Prof A (Toronto, buys at 35) | Prof B (Lagos, rents) |
|---|---|---|
| Property purchased | $450,000 condo at age 35 | None |
| Down payment | $90,000 | N/A |
| Monthly mortgage | $2,100 | N/A |
| Monthly rent | $2,200 (first 5 years) | $320/month |
| Property value at age 50 (3% annual growth) | $700,000 | N/A |
| Remaining mortgage at 50 | $220,000 | N/A |
| Property equity at 50 | $480,000 | $0 |
| Total savings (non-property) | $120,000 | $15,000 |
| Total net worth at 50 | $600,000 | $15,000 |
The property equity is the difference-maker. Professional A built $480,000 in equity simply by making mortgage payments instead of rent payments. Professional B paid rent every month for 20 years and has nothing to show for it in property terms.
What About Building a House? The Developing Country Alternative
Many professionals in Nigeria, India, the Philippines, and Pakistan plan to buy land and build gradually rather than buying a finished property with a mortgage. This is a legitimate strategy, but it has significant hidden costs and risks.
The "Build Gradually" Approach: Reality Check
| Phase | Typical Cost in Lagos | Timeline | Challenges |
|---|---|---|---|
| Buy land (600 sqm, Ajah/Ibeju-Lekki) | NGN 15-30M ($10K-$19K) | Year 1 | Land title fraud, government acquisition risk |
| Foundation | NGN 5-8M ($3.2K-$5.2K) | Year 2 | Contractor reliability, material price inflation |
| Block/structure | NGN 10-20M ($6.5K-$13K) | Year 3-4 | Material costs rising 15-25% annually |
| Roofing | NGN 5-10M ($3.2K-$6.5K) | Year 4-5 | Imported zinc/aluminum priced in USD |
| Plastering/finishing | NGN 8-15M ($5.2K-$9.7K) | Year 5-7 | Quality contractors scarce, prices volatile |
| Plumbing/electrical | NGN 5-10M ($3.2K-$6.5K) | Year 6-8 | Materials 100% import-dependent |
| Windows/doors/painting | NGN 5-8M ($3.2K-$5.2K) | Year 7-9 | Final finishes disproportionately expensive |
| Total | NGN 53-101M ($34K-$65K) | 7-9 years |
The gradual building approach typically takes 7-9 years and costs $34,000-$65,000 when all is said and done. During that period:
- Material costs increase annually due to naira depreciation (cement, roofing, electrical fittings are priced in or pegged to USD)
- The property generates no rental income and no equity appreciation while incomplete
- Money is illiquid — you cannot easily sell a half-built structure
- Construction fraud is common and there is limited legal recourse
- Land title disputes can surface years after purchase
Contrast this with buying a complete, move-in-ready property with a 25-year mortgage in Canada at 5.5% interest, where the property immediately begins appreciating and can be sold or refinanced at any time.
The Rental Trap in Developing Countries
If buying is nearly impossible, many professionals resign themselves to long-term renting. But renting in many developing countries has its own set of problems that do not exist in developed economies.
Rental Market Comparison
| Feature | Lagos | Mumbai | Toronto | Sydney |
|---|---|---|---|---|
| Typical lease payment | 1-2 years upfront | 6-12 months deposit | Monthly | Monthly |
| Deposit | 1-2 years' rent | 3-6 months' rent | First + last month | 4 weeks' rent |
| Tenant protection laws | Weak | Moderate | Strong | Strong |
| Rent control | None | Partial (old buildings) | Some provinces | Limited |
| Legal recourse for disputes | Slow, expensive | Slow | Accessible | Accessible |
| Maintenance responsibility | Often tenant | Often tenant | Landlord | Landlord |
In Lagos, the standard practice of paying 1-2 years of rent upfront means a professional must have NGN 4-7 million ($2,600-$4,500) in cash available every time they sign a lease. That is a substantial portion of an annual salary, due as a lump sum. Failure to pay on time can result in immediate eviction with limited legal recourse.
In Toronto or Sydney, you pay monthly, have strong tenant protection, and the landlord is legally required to maintain the property. The system is designed to make renting viable for working professionals.
The Interest Rate Illusion
Some people point out that in some developing countries, property prices are rising fast, meaning early buyers see significant appreciation. This is true in certain markets — Lagos and Mumbai property prices have risen substantially over the past decade.
But appreciation is meaningless if you cannot get on the ladder. A property that increases from $80,000 to $120,000 over five years has appreciated 50% — excellent on paper. But if you could not afford the $80,000 in the first place, the 50% appreciation just made it even less reachable. The gap between your savings capacity and the property price grew by $40,000, not shrunk.
Property Price Growth vs. Salary Growth (5-Year, 2021-2026)
| City | Property Price Growth | Salary Growth (USD terms) | Affordability Change |
|---|---|---|---|
| Lagos | +45% in naira, -20% in USD | -55% in USD | Much worse |
| Mumbai | +35% in INR, +25% in USD | +15% in USD | Worse |
| Manila | +20% in PHP, +10% in USD | +5% in USD | Worse |
| Toronto | +15% in CAD | +12% in CAD | Slightly worse |
| Sydney | +20% in AUD | +10% in AUD | Worse |
| Dubai | +40% in AED (from low base) | +15% in AED | Worse but still affordable |
| Berlin | +10% in EUR | +12% in EUR | Slightly better |
| Calgary | +18% in CAD | +15% in CAD | Stable |
In most cities, property prices are rising faster than salaries, making affordability worse over time. But the pace of deterioration is much faster in developing-country cities because of the double hit of property inflation plus currency depreciation.
Government Support Programs: Who Actually Helps?
Several destination countries have programs specifically designed to help first-time buyers. These programs reduce the down payment burden and make homeownership more accessible.
First-Time Buyer Assistance Programs
| Country | Program | Benefit |
|---|---|---|
| Canada | First Home Savings Account (FHSA) | Tax-free savings up to $40K for down payment |
| Canada | First-Time Home Buyer Incentive | Shared-equity mortgage reduces payments |
| Australia | First Home Owner Grant | $10,000-$30,000 grant (varies by state) |
| Australia | First Home Guarantee | Buy with 5% deposit, no mortgage insurance |
| UK | Lifetime ISA | Government adds 25% bonus on savings up to GBP 4,000/year |
| UK | Shared Ownership | Buy 25-75% of property, rent the rest |
| Germany | KfW Homeownership Programs | Low-interest loans and grants for energy-efficient homes |
| New Zealand | First Home Grant | $5,000-$10,000 for eligible buyers |
| New Zealand | KiwiSaver First Home Withdrawal | Use retirement savings for first home |
These programs do not exist in most developing countries. Nigerian, Indian, Filipino, Egyptian, and Pakistani professionals receive essentially no government support for homeownership. They face the highest interest rates, the worst mortgage terms, and zero assistance programs — while earning the lowest salaries.
The Bottom Line
Homeownership — the single most important wealth-building mechanism available to middle-class families — is structurally inaccessible to most professionals in developing countries. Not because they are not working hard enough. Not because they are spending too much on luxuries. Because the math does not work.
When you factor in the real price-to-income ratios, the mortgage conditions, the down payment requirements, and the salary trajectories, a mid-level professional in Lagos, Cairo, or Karachi has a harder path to homeownership than one in Berlin, Calgary, Dubai, Perth, or Adelaide.
The sticker price of the house is the wrong number to look at. The right numbers are: how many years of your salary, at what interest rate, with what down payment, using what mortgage terms? When you calculate those numbers honestly, the map of housing affordability looks very different from what most people assume.
Where you work determines not just your salary and your savings. It determines whether you will ever own the roof over your head. And for a growing number of professionals worldwide, that realization is changing the most important decision of their lives.
