French houses priciest in Europe - but debts low
Nicola Hebden · 13 Jun 2012, 12:02
Published: 13 Jun 2012 12:29 GMT+02:00
Updated: 13 Jun 2012 12:02 GMT+02:00
The study by finance company Deloitte reveals the average price of new real estate in the capital is €8000 per meter squared. The cheapest is in the Hungarian capital Budapest, where the average price per square meter is €940.
France also comes second for the general cost housing – including renting, building charges and home improvements. It is 41% over the EU monthly average of €3200 per year. Denmark is the most expensive at 70%.
Getting on the property ladder is hard in France too – not only do buyers have to face a 6.2% hike in house prices, the highest in Europe, Deloitte also calculated they need to save 9.11 years’ worth of salary to buy a house outright.
But one area where France isn’t worst in Europe is housing debt - mortgage loans total 41% of GDP, which is over 10% lower than the European average of 52%.
At an average of €12,310 per inhabitant, personal debt in general in France is on a par with most other European countries, including Austria, Belgium and Spain, but they were only slightly more than half those of Britons, who owed an average of €23,270 per person.
Deloitte’s study released today looked at 12 European countries in total, including Belgium, Denmark, Czech Republic, Austria, France, Italy, Spain, Hungary, Hollande, Poland and Britain.