Study Reveals The Average Price of Homes in Capital Cities, Based on Local Listings
Times are weird on the property market — and on a global scale. The COVID pandemic radically shook up our view of where and how we desired to live, and it also fundamentally changed many peoples’ options for doing so. On balance, prices grew; but now, in the fallout of the pandemic and with the added complication of the energy crisis and war in Ukraine, they’re on their way down.
Higher interest rates and the cost of living have forced down housing demand, although a general shortage of houses on the market has kept prices from bombing. Meanwhile, wages are dropping in real terms (with a particular impact on lower-income workers), further deterring potential buyers from spending.
According to Oxford Economics, nearly all 38 OECD nations are likely to see a deceleration in house price growth, with prices actually falling in more than half of them. This would be the widest slowdown in housing price growth for over 22 years. And according to the IMF, real house prices could drop by 25 percent in emerging markets over the next three years and by 10 percent in advanced markets (although this is a worst-case view).
So, where do things stand globally right now? NetCredit has calculated the average home price in total and per square meter in capital cities worldwide and compared them to local incomes to see where we are.
According to the International Monetary Fund’s Global Housing Watch, house prices have been rising consistently since the 2008 financial crisis, costing an average property $176,000. But how much will a home cost you in global cities?
According to our research, a place in Monaco will cost you three times more than any other capital. With a median of $4.48m, the principality is significantly more expensive than Luxembourg ($l.42m) and Singapore ($l.34m).
