Professional services network Deloitte has published its annual European Property Index, giving an overview of the housing market in Europe. As per usual, the document gives real estate professionals, economists, students, journalists, and policymakers a comprehensive overview of the housing market. Part of the study consisted of determining the cheapest and most expensive cities to buy a property in Europe, based on the average gross annual salary.
For its 14th edition of the European Property Index, Deloitte made some changes to the usual approach. Firstly, the company put a stronger spotlight on the local character of housing instead of focusing on the national markets, and secondly, the report covers a record number of participating countries, with Albania, Finland, and Türkiye joining the ranking. The way in which the Index was calculated, however, remains unchanged.
“At its core, the Property Index aims to offer a comprehensive analysis of the factors influencing housing markets, while taking into account the varied economic and social contexts of each country and region. It systematically compares residential property prices and rental levels across multiple European nations and key cities, providing both a broad overview and detailed benchmarks that help make sense of a highly diverse market landscape”, Deloitte explains.
Standardised criteria
In order to determine the cheapest and most expensive cities as far as owning a property is concerned, the Deloitte experts calculated the number of average gross annual salaries required to buy a standardised, newly-built, 70 square-meter apartment. While this doesn’t coincide with the average price per square meter, it takes into account the average income, thus giving a more standardised overview.
“It is essential to highlight that housing affordability is shaped not only by property prices, but also by local wage levels. In some cases, even cities with high property values may offer improved affordability due to corresponding growth in average gross salaries. Therefore, the balance between income growth and housing cost inflation remains a crucial factor influencing housing accessibility across Europe”, the European Property Index.
According the the data collected by Deloitte, Amsterdam ranks as the least affordable city to own a home. In the Dutch capital, residents need 15.4 average gross annual salaries to purchase a 70 square-meter new home. The top three are completed by Athens (15.3) and Prague (15). On the other side of the ranking stands Turin, with 4.9 average gross annual salary. Odense (4.9) and Manchester (5.3) are close competitors as far as affordable housing is concerned.
As the ranking was based on new homes of a certain surface, the calculation might not always be representative of the entire housing market in a city. Some cities are known for having notoriously small homes, while others may not have many new builds. Property prices can thus still heavily differ from Deloitte’s European Property Index.
© Deloitte Global
Most expensive cities to own a home
- Amsterdam, Netherlands
- Athens, Greece
- Prague, Czechia
- Košice, Slovakia
- Brno, Czechia
- Banská Bystrica
- Bratislava, Slovakia
- Ljubljana, Slovenia
- Thessaloniki, Greece
- Budapest, Hungary
