Real estate in Europe: the most (and least) affordable …

Based on a series of indices prepared at European level by Numbeo, we present a ranking of real estate prices in the centers of major European cities, essentially taking as a reference the price of a median apartment and the median annual income of a family in the city. taken into consideration. The indicaotre is very interesting because it highlights how much a family can actually buy a house in the city taken as the object of the analysis. If the value in the city is very high:

• there is a high probability that there is a housing bubble;
• average families cannot easily access the real estate market, except by borrowing heavily and for a large number of years. This on the one hand indicates a real estate property in the hands of a few large groups, on the other it makes the market very “Thin” on the demand side, therefore potentially unstable.

We begin to present the ranking, first with the highest heats in the parameter between price and annual family income.

And the more affordable ones

Moscow is the most expensive city, from the point of view of income, in Europe is Moscow, followed by Cascais, a well-known Portuguese tourist city, and Paris. Given that the value is related to income, in the first two cases, the not high Russian and Portuguese per capita income can also influence, while Paris is actually expensive, even in an absolute sense. In the ranking we also have Milan and Rome

Among the more affordable we have Limerick in Ireland and Best in the Netherlands, but Padua in Italy is also in this part of the list.

in which European cities is it worth buying as an investment? Which are the ones with the highest rental income?

Let's see how convenience in purchasing is perhaps the most important element for a good yield, given that Limerick is also at the top in this ranking and Cork is not far off. Among the most profitable cities is Catania, even if the yield is much lower than that of the top. The least profitable?

• Paris
• Lugano
• Munich

In these cities, getting a return of 2% is already remarkable. Therefore, even the yield does not justify too high a property value. The yield should be an essential factor in the evaluation of a property: it allows those who buy it, also for investment purposes, not to be immediately linked to an increase in value which, perhaps, may not exist.

---

---

The article Real Estate in Europe: the most (and the least) convenient … comes from ScenariEconomici.it .

---

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/immobili-in-europa-i-piu-ed-i-meno-convenienti/ on Mon, 03 Jan 2022 18:14:27 +0000.