5 Ottober 2017 La Repubblica
A professional working in the service sector has to work “only” 5.7 years to afford to buy a 60 Sq m apartment.
Is Milan better than Amsterdam, Munich and Stockholm? For what concerns the convenience of the property market, it is. In comparison with the other European cities, Milan offers the better value. It’s reported by the survey on real estate by UBS. The survey analyses the prices for residential buildings of 20 metropolis all over the world.
A professional working in the service sector has to work “only” 5.7 years to afford to buy a 60 Sq m apartment. Of the other European cities, this is the best performance. Compared to 2007, the year when the recession hit, the actual house prices are 30% lower. In fact, the slow recovery has penalised the real estate market. However, according to UBS, the improvement of the economic situation should increase the value of the properties.
Instead, the rest of the continent is at risk of hyper-valuation. The property bubble index is rising for all the European cities. Spikes in prices have been recorded in Netherlands (Amsterdam), Germany (Frankfurt and Munich), and Sweden (Stockholm). London is at stake, even though the risk has decreased compared to the previous year.
In the past few years, the most prestigious locations have benefited from the price increase, thanks to the increased wealth of families residing in cities. The growth of the international demand, especially from China, has penalised local buyers. “The general improvement of the economy, combined with a solid growth of the incomes in the main cities, together with excessively low financing costs, have led to a high demand on accommodations in the big cities”, explains Claudio Saputelli from UBS. The limited offer in the cities has caused the prices to spike, increasing the risk of a property bubble. While Milan registers a countertrend, making the city less exposed to this risk.
Source: La Repubblica (by Gianluca Brigatti)
Translator: Cristina Ambrosi