Insights

European Residential Property Index 2013

The report

We are pleased to provide you with our third edition of the Deloitte Property Index. Providing an index of average residential unit prices in 16 countries (Ireland, Israel and Portugal have been added compared to last year’s edition), our publication also addresses the evolution of housing development intensity, housing stock, ownership structure, apartment size, housing costs and mortgage markets.

Content of this 3rd edition:

The 2013 average transaction price of a new dwelling in Belgium amounts to EUR 2,100 per square meter (+2% compared to last year)

While property prices for new dwellings decreased significantly in countries like Spain (-14%) and Italy (-5%) compared to 2012, prices in Belgium increased with approximately 2%. The average transaction price of new dwelling in Belgium amounted to EUR 2,100 per square meter.

Thus there are no current indications that the moderate annual increase in prices seen historically on the Belgian market would not continue in 2014 in line with inflation.

The group of countries with average realized prices of EUR 2,000 per square meter includes the Netherlands, Ireland, Denmark, Belgium and Austria.

The affordability of housing index in function of the number of years of annual gross salaries required to buy a standard-sized new dwelling is 3.6 for Belgium compared to ranges from 2.1 years in Denmark to 8.5 in the UK

The most affordable own housing was recorded in Denmark, Germany and Portugal. These three countries are followed by a group of countries including Belgium, the Netherlands, Ireland, Spain and Austria with affordable own housing ranging 3.6 to 5.6 years of annual gross salaries required to buy a standard-sized new dwelling of 70 m². The highest number of gross annual salaries is needed in France (7.9), the UK (8.5) and Russia (10.4).

It is also worth noting that the highest share of large apartments in terms of number of rooms was found in Spain, Ireland and Belgium.

In 2013, the average EU housing stock slightly increased to almost 476 apartments per 1,000 inhabitants

Spain boasts the largest housing stock out of the compared countries (18% above the EU average); Poland, on the other hand, has the lowest housing stock (25% below the EU average). The housing stock in Belgium remains 16% below the European average.

The housing development intensity of the European Union continued to decline. The number of completed apartments per 1,000 citizens decreased from 3.9 in 2011 and 3.3 in 2012 to 2.5 in 2013

The country with the highest housing development intensity in 2013 was Russia (6.5 completed apartments per 1,000 inhabitants). Among European countries, France had the highest housing development intensity (5 completed apartments per 1,000 inhabitants), closely followed by Austria (4.7 completed apartments per 1,000 inhabitants) while Belgium remains 22% above the European average. In our country, the number of issued permits in 2013 increased with 2.3% compared to 2012 in Belgium.

The average indebtedness of the housing stock (proportion of the volume of mortgage loans to GDP) for EU27 is 52% and 48.8% for Belgium

The newest EU joiners, the transitive economies of Hungary, Poland and Czech Republic, with the lowest salaries, have the lowest residential debt per capita in the EU. The debt in the Netherlands (EUR 48,500) is 4 times higher than Austria (EUR 12,300) while Belgium (EUR 20,500) is comparable to France and Germany.

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Frédéric Sohet

Real Estate Industry Leader