in-cyprus 13 October 2024 - by Constantinos Tsindas
BestBrokers.com has compared the number of average monthly salaries needed to purchase and keep up mortgage payments on a 100 square metre apartment across Europe, recording the most affordable countries, as property prices are set to continue on an upwards spiral and the housing crisis deepens, forcing middle and low income earners to either rent, not affording the luxury of a quality home, move city or even emigrate across Europe.
At https://www.bestbrokers.com/forex-brokers/the-global-cost-of-homes-in-2024, Paul Hoffman and his team of researchers compare housing interest and home prices around the world, recording significant parameters and analysing the cost to interest variant, based on how many monthly salaries are needed on average to purchase a home in a number of European countries.
The affordability factor is determined by home prices, the net monthly and yearly income, inflation and real mortgage interest rates adapted to a total of 62 states. ‘It was established’, as the researchers said, ‘that certain of the most expensive home properties are not in developed countries with a high standard of living, but in smaller economies with lower cost but also low income’.
Turkey is the least affordable to buy a home in 2024, with the analogy of home price to income being 81.45%, as inflation is at a massive 55% on a yearly basis and the average salary is 549 dollars, estimated at 6,500 per year. But as inflation is steadily high the real yearly salary drops down to 2,965 dollars.
The most affordable country to buy a home in Europe, always related to the average individual income, is Denmark, as the price of 100 metre square metre property corresponds to 114 net salaries, meaning that people should save their salaries for around 114 months in order to afford a house of this size.
Ireland and Sweden are the 2nd and 3rd most affordable with 123 and 129 net salaries needed respectively to purchase and maintain a 100 square metre home. Cyprus amazingly slots in 4th, with 139 salaries needed. The analogy of home to income here is 11.83%, with the average yearly salary estimated at 24,000 dollars and the price of the home at 2,827 dollars per square metre.
In Greece, the average price of a 100 square metre home corresponds to 228 times the average salary, in Malta this number is 232, in Luxembourg 246, France 197, Germany 185, in Italy 184 salaries are needed and in Finland 186.
The least affordable countries to purchase a 100 square metre home based on comparison with the average salary, are the Czech Republic and Slovakia, where half a century is needed to afford such a home.
