The Most (and Least) Affordable Countries to Buy Property

Real estate buyers and investors, listen up. A survey conducted by Compare The Market has revealed which countries are the most and least affordable when it comes to  buying property. The study compares average property prices per square meter to the average disposable household income in each country to calculate the cost per square meter as a percent of annual income.

Most affordable countries:

1. Turkey 

• Average annual disposable household income (USD): $18,302
• Average property price per m² (USD): $736.12
• Property price (per m²) to income percentage: 4%

2. United States

• Average annual disposable household income (USD): $45,284
• Average property price per m² (USD): $2,845.82
• Property price (per m²) to income percentage: 6.3%

3. Mexico

• Average annual disposable household income (USD): $13,965
• Average property price per m² (USD): $984.63
• Property price (per m²) to income percentage: 7.1%

4. South Africa

• Average annual disposable household income (USD): $11,592
• Average property price per m² (USD): $866.27
• Property price (per m²) to income percentage: 7.5%

5. Brazil

• Average annual disposable household income (USD): $12,701
• Average property price per m² (USD): $1,151.71
• Property price (per m²) to income percentage: 9.1%

6. Russia

• Average annual disposable household income (USD): $17,831
• Average property price per m² (USD): $1,640.89
• Property price (per m²) to income percentage: 9.2%

7. Latvia

• Average annual disposable household income (USD): $16,275
• Average property price per m² (USD): $1,568.65
• Property price (per m²) to income percentage: 9.6%

8. Greece

• Average annual disposable household income (USD): $17,700
• Average property price per m² (USD): $1,713.34
• Property price (per m²) to income percentage: 9.7%

9. Hungary

• Average annual disposable household income (USD): $18,430
• Average property price per m² (USD): $1,846.47
• Property price (per m²) to income percentage: 10%

10. Italy 

• Average annual disposable household income (USD): $26,588
• Average property price per m² (USD): 2,851.30
• Property price (per m²) to income percentage: 10.7%

Least affordable countries:

1. South Korea

• Average annual disposable household income (USD): $21,882
• Average property price per m² (USD): $12,989.34
• Property price (per m²) to income percentage: 59.4%

2. Israel

• Average annual disposable household income (USD): $24,863
• Average property price per m² (USD): $7,598.98
• Property price (per m²) to income percentage: 30.6%

3. Luxembourg

• Average annual disposable household income (USD): $39,264
• Average property price per m² (USD): $11,354.86
• Property price (per m²) to income percentage: 28.9%

4. Switzerland

• Average annual disposable household income (USD): $$37,466
• Average property price per m² (USD): $10,575.06
• Property price (per m²) to income percentage: 28.2%

5. Japan

• Average annual disposable household income (USD): $29,798
• Average property price per m² (USD): $6,086.83
• Property price (per m²) to income percentage: 20.4%

6. New Zealand

• Average annual disposable household income (USD): $25,074
• Average property price per m² (USD): $4,461.47
• Property price (per m²) to income percentage: 17.8%

7. Czech Republic

• Average annual disposable household income (USD): $21,453
• Average property price per m² (USD): $3,698.74
• Property price (per m²) to income percentage: 17.2%

8. United Kingdom

• Average annual disposable household income (USD): $28,715
• Average property price per m² (USD): $4,877.81
• Property price (per m²) to income percentage: 17%

9. France

• Average annual disposable household income (USD): $31,304
• Average property price per m² (USD): $5,177.30
• Property price (per m²) to income percentage: 16.5%

10. Denmark 

• Average annual disposable household income (USD): $29,606
• Average property price per m² (USD): $4,859.78
• Property price (per m²) to income percentage: 16.4%

The takeaway: 

“Trying to buy a property right now is harder than it’s ever been, largely thanks to the pandemic in particular,” said Stephen Zeller, general manager of Home and Contents Insurance at Compare the Market. “Whilst property prices, costs of living and property shortages are reaching new highs, wages and disposable income has struggled to keep up, which means that for some, the property buying process may at times feel impossible. However, annual incomes and property prices vary a lot from one country to the next, and so it’s not bad news for everyone, especially for the countries that rank in the topmost affordable places to buy property. The same can also be said for countries where affordability has plunged. Buyers can still have some luck finding areas with accessible housing if they are willing to sacrifice on proximity to major metropolitan areas, as an example.”