Real Estate Prices in European Capitals in 2023: Market Analysis
Investing in real estate has always been one of the most reliable ways to preserve and grow capital. And if you are considering buying property abroad, it is important to pay attention to real estate prices in European capitals as of June 2023.
Property prices in some European capitals continue to decline, reaching their lowest point in recent years. The reasons for this development include the post-pandemic effect, migration from metropolises to less populated cities, interest rate restrictions, and increased property taxes.
Table of Real Estate Prices in European Capitals in June 2023:
| City | Price per sq. m. (in euros) | Monthly Change (%) | Yearly Change (%) |
|---|---|---|---|
| Paris | 10,936 | -1.2 | -4.1 |
| Zurich | 10,276 | +0.8 | +4.2 |
| London | 8,628 | -1.6 | +0.5 |
| Vienna | 7,810 | +11.0 | -2.9 |
| Stockholm | 7,134 | +0.5 | +3.2 |
| Dublin | 5,369 | -3.3 | -1.8 |
| Milan | 5,271 | +0.6 | +3.8 |
| Berlin | 5,128 | -0.2 | -2.8 |
| Madrid | 4,015 | +0.9 | +5.1 |
Note: All data is for June 2023, except for Vienna (July 2023) and Dublin (May 2023). Source: Bloomberg. Prices are indicated in euros per square meter. Changes are calculated in the local currency.
In June 2023, property prices in Paris were 10,936 euros per square meter. Although prices decreased by 1.2% compared to the previous month, they dropped by 4.1% compared to the previous year. Nevertheless, Paris remains one of the most expensive cities in Europe for buying property. The decline in property prices in Paris can be attributed to several factors, including the long-lasting “post-pandemic” effect that has greatly impacted the economy as a whole. Virus-related restrictions have prompted many people to leave big cities and move to less populated areas. This has led to an increase in housing supply, which in turn puts pressure on prices. Additionally, French banks are prohibited from granting mortgages above the maximum interest rate set by the Central Bank. This restriction reduces the accessibility of housing loans, which may also be one of the reasons for the decline in property prices in Paris. However, not everyone is pleased with the price drop. This year, property owners in Paris will also face a 52% increase in property tax. The mayor explains this as a result of inflation and energy prices, but many property owners consider such a tax hike unacceptable. Thus, the decrease in housing prices in Paris to a four-year low provides an excellent opportunity for those who would like to purchase property in the French capital. However, despite the decrease, Paris still remains one of the most expensive cities in Europe for buying housing.
Zurich takes second place in terms of property cost, with a price of 10,276 euros per square meter. Prices have increased by 0.8% in the last month and by 4.2% compared to the previous year. Zurich is considered one of the most financially and economically developed cities in Europe, so the steady growth in property prices here is not surprising.
London takes third place with a property price of 8,628 euros per square meter. Prices decreased by 1.6% compared to the previous month but showed a 0.5% increase over the year. The slight annual change in property prices is due to economic uncertainty.
Other interesting facts:
- In Berlin, the cost of real estate has decreased by 2.8% in a year and amounts to €5,128 per square meter. In Dublin, prices have decreased by 1.8% and reached €5,369 per square meter. In Vienna, prices have fallen by 2.9% in a year and amount to €7,810 per square meter.
- However, not all European capitals have experienced a decline in property prices. For example, in Zurich, prices have increased by 4.2% in a year and amount to €10,276 per square meter. In London, prices have increased by 0.5% and amount to €8,628 per square meter. In Madrid, prices have increased by 5.1% and reached €4,015 per square meter.
- The reasons for the decline in property prices in Paris and other cities may be the long-term consequences of the COVID-19 pandemic. Restrictions related to the virus have prompted many people to move from megacities to less populated cities, leading to a decrease in demand for housing.
Overall, the situation in the real estate market in European capitals is diverse. Some cities have experienced a decline in prices, while others have seen some growth. This may be related to the overall economic situation, the long-term consequences of the pandemic, and other factors. In any case, for those who want to purchase property in a European capital, the current moment may be favorable, especially in Paris, where prices have been at a low level for the past four years. When choosing investments in foreign real estate, it is important to consider not only current prices but also market trends, economic stability, and the political situation in the country.
