- Russian Federation
- Rating of countries with the most affordable real estate
- United States of America
- Dominican Republic
Experts of the international real estate agency EVANS have compiled two ratings of states that are distinguished by the most inaccessible real estate for the local population, as well as countries whose citizens can quite easily make the dream of their own house or apartment come true.
The average cost of residential real estate in this South Asian country is relatively low – 74,953 euros. However, the average annual family income is only 1,846 euros. It is such low incomes of the population that have become the reason that Pakistan ranks second in the ranking of countries with the most inaccessible real estate. To accumulate the funds necessary to buy an apartment or house, a Pakistani will have to save on the most necessary 40.6 years.
The situation in this European state is generally similar to the Moroccan real estate market – the favorable geographical position and status of a popular resort region have led to the fact that Montenegrin real estate is highly valued by foreign buyers. Currently, the average cost of housing in Montenegro is 151,155 euros. But the average annual family income is 5,038 euros, which, of course, is very small, especially compared to the income of residents of Germany or the UK. Thus, in order to purchase their own home, an ordinary Montenegrin will have to postpone all wages for 30 years..
In fourth place in the ranking of countries, most of whose citizens can only dream of improving their living conditions, is Belarus. On average, residential real estate in the republic costs 90,000 euros, and the average annual income of Belarusians is 3203 euros. To become the owners of a new apartment or house, citizens of Belarus need to save money for 28.1 years.
Vasil Peshkun. Minsk. 2010
Our country, of course, rightfully occupies the fifth place in this rating, since the “housing problem” is quite acute for the Russians. To determine the degree of housing affordability in Russia, the experts had to take data separately for Moscow and for all other regions, since the capital’s real estate market, as well as the level of income of Muscovites, differ significantly from the same indicators prevailing in the rest of the country..
“Only” in 20.8 years, an ordinary Russian who is a resident of one of the regions will be able to buy a small house or apartment.
So, on average, the price of residential real estate in the Russian capital is 303,151 euros, the average annual income of white-stone residents is 11,615 euros. Thus, the average Muscovite will be able to become the owner of an apartment in 26 years. The average cost of housing in the regions of Russia is significantly lower than the Moscow one – 64,102 euros, however, the average annual income of a family living in the regions is almost 4 times lower than the earnings of residents of the capital – 3080 euros. So, “only” in 20.8 years an ordinary Russian who is a resident of one of the regions will be able to buy a small house or apartment.
Rating of countries with the most affordable real estate
United States of America
According to the data obtained in the course of the research by the specialists of the EVANS company, the United States of America offers its citizens the most affordable housing. The average cost of housing in the United States is 95,536 euros, and the average income that an American family receives per year is 35,384 euros. So the average American can afford to buy a new apartment or house after 2.7 years of work. If we add the availability of mortgage loans to this indicator, it becomes clear why the United States ranks first in the world in terms of the number of square meters of living space per person – 60 square meters. For comparison, in Moscow this figure is 23.4 square meters per 1 inhabitant, in Ukraine – 22 square meters.
Surprisingly, in this country with a wonderful climate and a developed tourism sector, the average cost of residential real estate is only 33,516 euros. And the current level of income allows the average Dominican family to receive 9 576 euros annually. That is, after 3.5 years, postponing the average wage, a resident of the country will be able to become the owner of a house or apartment, often with an excellent view of the ocean. However, due to the increased interest in real estate in the Dominican Republic from foreign investors, experts predict a stable rise in housing prices. So in the near future this situation may change not for the better for local residents..
Alfredo Senior. La fiesta del centenario. 1944
The average cost of residential real estate in this Latin American country is about 45,794 euros, and the average income of an ordinary family for the year is 11,307 euros. An ordinary resident of the country needs to work hard and save only 4.05 years in order to become the owner of an apartment or house in his region. However, it is worth considering the fact that the average house in Chile is a panel structure that is being built in the shortest possible time and does not have any foundation or insulation. In the local climate, there is no need for central heating, and yet it can be quite chilly in such a building in winter. However, the main reason for the cheapness of real estate in Chile is the affordable price of land. So, a plot of land on the coast, with an area of about 5 hectares, will cost the buyer only 6-12 thousand euros.
The average cost of a Swedish residential property is 119,536 euros, the average annual income of an ordinary family is 28,461 euros. Thus, a Swede who receives an average salary will be able to buy a house or apartment in 4.2 years. Traditionally high wages (however, taxed at very high rates) allow Swedish residents to quickly save up for their own housing. In addition, the country provides programs for providing low-income citizens with inexpensive social housing, and the real estate fund itself is mostly new buildings of excellent quality..
On average, residential real estate in this European country costs the buyer 121,723 euros, the average annual income of a Belgian family is 28,307 euros. The Belgian will be able to become the owner of an apartment or house in just 4.3 years. I would like to note right away that the situation in Belgium is not unique for the EU countries, in particular, a resident of Germany will need only 4.4 years to buy residential real estate, Austria – 5.2 years, Switzerland – 5.4, Finland – 6, 2, Netherlands – 6.5 years.
Unfortunately, Russia is still very far from the level of housing affordability, which has developed in most European countries, and even more so to the indicators of the United States. There are only two ways to solve this issue – either to lower the cost of square meters in new buildings (which is hard to believe), or to increase the average income of Russians, in which our state is also in no hurry to provide assistance.