Portugal home to eu's most affordable property
Photo: Chris Yunker
The report compared sales prices of properties with monthly salaries in each country to determine how many years' worth of income is required to buy a typical new dwelling of 70 m². In Denmark, it takes just 2.1 annual gross salaries to pick up a property.
Frédéric Sohet, Real Estate & Construction Industry Leader of Deloitte Belgium, comments: "The Property Index highlights important trends in the residential markets and provides an invaluable insight into how Europeans live - and at what costs. In this edition, we continue to see how the European economy impacts the residential markets."
The report highlights Belgium as having a particularly positive outlook. Indeed, property prices increased 2 per cent in the country compared to 2012, with the average transaction price of a new dwelling up to EUR 2,100 per square metre. The Netherlands, Ireland, Denmark and Austria also have an average realised price of EUR 2,000 per square metre.
Property prices for new dwellings decreased in other, more financially troubled countries. Spain led the decline with a drop in value of 14 per cent, while Italy's prices dipped 5 per cent.
"The current more positive outlook on the European economic environment may help boost the real estate market in the coming year, but regional developments, such as future taxation in Belgium, remain important influencers," adds Sohet.
The affordability of housing index is 3.6 in Belgium compared to 8.5 in the UK. The most affordable own housing, though, is in Germany and Portugal as well as Denmark. They are followed by a group of countries, including Belgium, the Netherlands, Ireland, Spain and Austria, with affordable own housing ranging from 3.6 to 5.6 years of annual gross salaries. The highest number of gross annual salaries is required in France (7.9), the UK (8.5) and Russia (10.4).
While Portugal's prices remain affordable relative to income, though, prices of new homes are on the up, as the market begins to show signs of stablisation.
Indeed, the RICS/Ci Portuguese Housing Market Survey for May shows that confidence is on the up in the country, with positive sentiment standing at +15 on the scale (a measure of both sales and price expectations), just below the record of +16 set in June 2014 and the seventh consecutive positive monthly reading.
Buyer interest and sales activity, meanwhile, have been increasing since the start of this year, notes OPP Connect.
RICS Senior Economist, Josh Miller, comments: "The May survey results suggest that the negative trend in house prices may shortly be coming to an end, while activity levels look set to improve in the near term. The economic recovery will need to add further support if this more promising picture is to fully develop."