The latest European property report from Deloitte has highlighted some “Inequalities of real estate digging in across Europe.” The study highlights some very important differences between European countries.
For example in Russia it takes 10 years wages to own an average sized property yet in Denmark it takes only two years. The study shows that contrary to what some might think, real estate prices do not appear to be significantly correlated with the economy of their country.
This is shown best by Denmark, Germany, the Netherlands or Belgium, all rich countries where real estate is more affordable. Denmark tops the list, it is easier to buy a property there with an average salary, then followed by Germany where last year, buying a new 70 m² was equivalent to three years’ salary.
In Portugal and Spain real estate is very affordable, especially in Spain where prices continue to fall in the wake of their burst bubble (-13% in 2013). This has given some oxygen to the buying power of domestic household but even so, with the economy taking a hit too average salaries are also lower meaning the purchase of a 70 m² still took 3.6 years in 2013. They’re going in the right direction though as it took nearly five years in 2012.