Colombo ranked world s most unaffordable city for property buyers in 2026

Colombo has been named the least affordable city in the world for buying property, according to the latest Property Prices Index from Numbeo, which is the largest database for cost-of-living information globally. The data reveals that in Colombo, the price-to-income ratio is 55.3. This indicates that the typical property price is over 55 times greater than the average yearly income. In comparison, the gross rental yield—calculated as the yearly rental income compared to the property price—is only 3% in the city center and 3.8% in areas outside the center, making it a less attractive option for property investors. Additionally, the mortgage burden for residents is extremely high, with payments amounting to 774% of the average income. The affordability index for the city is a mere 0.1, highlighting the severe challenges locals face when trying to buy property. This ranking places Colombo above other Asian cities known for their expensive property markets, such as Kathmandu (Nepal), Manila (Philippines), Xiamen (China), Taipei (Taiwan), Shanghai (China), Hong Kong (China), Beijing (China), Phnom Penh (Cambodia), and Mumbai (India). Copyright ©2026 Ada Derana. All rights reserved. Solution by Technology Partner Fortunacreatives.