WHERE ARE THE MOST EXPENSIVE APARTMENTS IN EUROPE? THE ANSWER WILL SURPRISE YOU
New data shows in which countries in Europe housing is the most expensive and how much people are willing to pay for a roof over their heads. In recent years, there has been a significant increase in real estate prices in large European cities, in small towns prices remain the same or fall.
According to Euronews, the British think tank found that people in Finland spend 24% of their total spending on housing, which is much higher than the EU average of 15%. At the same time, in Poland, the share of housing expenditure is 6%, which is the lowest among all countries of the Organization for Economic Cooperation and Development (OECD).
The data combines the cost of actual rent with an estimate of the housing costs owners would pay if they rented their home on the open market, which is called "imputed rent."
The largest expenditure item in all countries was notional rent for housing. The exception is Poland, where electricity, gas and other fuels were recognized as the largest expenses. Poland's heavy dependence on fossil fuels has led to the highest wholesale electricity prices in Europe.
Where in Europe has real estate risen in price the most since 2015?
Although there is very little international data on living space per person, countries such as France and Germany, which are relatively similar in size, population, and economic development, have roughly the same amount of living space: 43 m2 in France (in 2020) and 46 m2 in Germany (in 2017).
The proportion of apartments built before 1946 also has a significant impact on the quality of life. Pre-war homes are often less insulated and therefore more susceptible to dampness.
In Greece, the figure is only 8%, the lowest proportion of pre-war housing of any European country, thanks in large part to the radical housing solutions implemented after the end of World War II. Rising house prices and rents are making it difficult for Greeks to climb the real estate ladder. A recent poll found that tackling rising prices is the most important issue for voters in the upcoming EU elections, with 68% of those surveyed citing it as a priority.
Which countries in the world have the highest house prices?
Compared to the general price level in the country, the cost of housing is the highest in the UK. This is followed by New Zealand, Australia and Ireland. In Poland and Greece, the figures are well below the OECD average.
In Europe, house prices rose the most in Turkey. The figures show that the cost of housing in Turkey in nominal terms is 12 times higher than 9 years ago. This means that an apartment in Istanbul is a tough competitor to the notoriously expensive Paris and London.
Turkey is followed by Hungary, where prices are 166% higher than in 2015.
Among OECD member countries, the Nordic countries, Sweden and Finland saw the smallest changes. There, nominal housing prices have risen by 4% since 2015.