How much does it cost to buy a house in Europe? Which is the cheapest nation? And the most expensive one?
The second edition of the book answers these questions Deloitte “Property Index” study which aims to analyze which are the factors that influence the development of the real estate market by comparing the prices of residential homes in some European towns and cities.
Prices in selected countries, specifies Deloitte, and in their major cities differ significantly as a result of historical development and various factors affecting the volume of demand and supply (intensification of residential development, ownership or non-ownership of and the standard dimensions of the dwelling).
Russia has also been included in this edition of the study with the aim of comparing its results with the nations of Western and Central Europe.
Compared to last year, the largest price increase was recorded in the UK (+13,5%) and Russia (+11,1%), followed by Germany with +9.1%; moderate increases concern Austria (+4,8%), Belgium (+3,1%) and France (+2,5%). The drop in property prices in Italy doubled in 2012 (-3,6% from -1,8% in 2011). Still bad Spain (-6,2%), Poland (-1,8%) and Holland (-6,9%).
At the city level, the more expensive is London where an apartment in the center costs 10 euros per square metre, while less than 1700 is needed in Warsaw. The highest growth in prices was recorded in Berlin (+13%), while the City follows with +12% and Moscow with +11%. Warsaw and Amsterdam showed the largest year-on-year loss of purchasing power, at 8% and 7% respectively. In Italy, Milan and Rome, while confirming themselves as the most expensive cities with an average of 4 euros per square metre, are within the European average. In Paris, prices go up to 8.300 euros (+200% compared to the French average), in Munich, the most expensive city in Germany, to 5000.
The study also considers i gross monthly wages perceived in the various countries selected to understand whether or not it is possible for the inhabitants to afford a house; in particular, the number of years needed to buy a standard house (70 square meters) is evaluated. Results range from 2,2 years in Denmark to 10,1 years in Russia. Italy is in the group with Poland, the Czech Republic and Hungary with a required number of years between 6,9 and 7,7.
Finally about the mortgage market, the lowest level of debt, after the countries of Eastern Europe, is that of Italy and Austria, where the volume of mortgages is equal to 23% and 28% of GDP. Value that jumps respectively to 42% and 45% in France and Germany.
Attachments: Deloitte study on the European real estate market
