Wednesday, January 19

Immovable. Inexpensive in Rome, astronomical in London… Real estate prices in European capitals

Almost 12,000 € / m2 of purchase difference between Rome and London. This is the stratospheric gap that exists between these two European capitals on the real estate market, according to a study of Best Agents for Le Parisien. In the English capital, it will take € 14,977 / m2, against € 2,833 / m2 in the Italian city. And although prices have changed little in London in recent years, it remains the most expensive city in Europe. “It is the city of business par excellence because it speaks the language most used in the world, underlines François Gagnon, president of the ERA network in Europe, in Parisien. In addition, Brexit has brought back many English because they didn’t know what the future would hold. “

As expensive in Madrid and Rome as in… Tours

These disparities can be explained by the level of wages, but also “economic activity” which “plays an important role” according to Thomas Lefebvre, scientific director of the Meilleur Agents site. “Here again, cities in the north which have major business centers such as the City of London, La Défense in Paris or Potsdamer Platz in Berlin also have the highest house prices.”

Thus, Madrid and Rome accuse the blow. For example, in Spain, Barcelona has a higher price per square meter than in the capital (2,917 € / m2) because economic activity is stronger and the city attracts more wealthy households. As for Rome, “it has the disadvantages, analyzes François Gagnon. The city is noisy, with a very high density, permanently bottled up, full of tourists and without a business center. Results: the Italians do not want to live there and the investors see no profitability. ” According to the barometer of Best Agents, for example, it costs as much, or even more, to settle in Tours (€ 2,896 / m2) or Montpellier (€ 3,198 / m2) than in the two capitals of southern Europe.

Real estate prices in European capitals

London: € 14,977 / m2 (+ 7% over the last five years)

Paris: € 10,377 / m2 (+ 27% over the last five years)

Brussels: € 3,340 / m2 (+ 24.9% over the last five years)

Berlin: € 4,331 / m2 (+ 43.9% over the last five years)

Lisbon: 3,660 € / m2 (+ 95.4% over the last five years)

Madrid: € 2,917 / m2 (+ 34.1% over the last five years)

Rome: 2,833 € / m2 (-6.7% over the last five years)

Lisbon survivor

In the south, the Portuguese capital is doing well: the price per square meter is estimated at 3,660 euros. In five years, the increase is of the order of + 95.4%. This development can be explained in particular by the tax policy put in place: on the one hand, a golden visa allows foreigners investing 277,000 euros in real estate to obtain a residence permit and, on the other hand, a status of non-habitual resident allows to obtain a tax at 10 or 20% for ten years. The impact is such “that today, the locals can no longer find accommodation in Lisbon and are forced to leave the city”, explains Maxime Hueber, France director of Casafari, an aggregator specializing in real estate data in the Iberian Peninsula. , quoted by Le Parisien. What to inspire Madrid and Rome?

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