It would appear that the real purchasing power of the French is much lower than that of their neighbours, according to Deloitte. It is therefore very good that French mortgage rates are also so low…
“France is one of the European countries where it is more difficult to access the property market,” says Deloitte’s third study on the European real estate market. Last year, French households had to spend 7.9 years of average gross salaries to become the owner of a new house 70 sqm house.
This may strike many as a surprise, but their purchasing power has actually improved significantly – it took 9.4 years in 2012.
“This evolution is explained by the very slight decline in prices (-0.9% in 2013), but mainly by low French mortgage rates and a change in the profile of buyers; them becoming increasingly wealthy,” decrypts Laure Silvestro Siaz who is associated with Deloitte.
In 2013 British households had to spend an average of 8.5 years of income to buy a new 70m² and much more in London, the UK’s most expensive market. Price inflation in London real estate prompted the government to take measures to calm the waters and it now appears the Italian government must also provide a significant financial effort if the Italian public care to beable to become owners after 7 years.