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Even in the face of a global pandemic, property prices continue to rise across the world, as they have been doing for some time now.
However, the picture isn’t the same in every country as property prices fluctuate at different rates.
Our mortgage experts have looked at how the average property price has changed compared to 2010 to see which nations are seeing the cost of property outstrip that of earnings.
1. Israel: 345.7% increase
The country that has seen its average property prices go up the most in the last decade is Israel, where the average price has increased an incredible 345.7%.
Standing at £1,553 per square metre in 2010, property prices in Israel now average at £6,920 per square metre, an increase of £5,368 over the course of the decade.
However, the average wage in the country has only gone up by 17.5% in that time, a difference of 328.2%.
The analysis showed that in Israel, the rate of increase when it comes to property prices was far higher than the average rate increase of inflation over the decade, which stood at just 0.92%.
2. Switzerland: 165.5% increase
Switzerland is quite well-known for having a high cost of living and being an expensive place to live and work, and this has only increased over the last ten years.
In 2010, Switzerland was among the most expensive countries, with a per square metre cost of £3,197. The cost had increased by 165.5% to £8,489 in 2020, which would work out as £424,427 for a 50 square metre property.
The increase is even more shocking when you consider that the average wage in Switzerland has only increased by 2.4% since 2010, and inflation has dropped slightly (0.04% on average over the last ten years).
3. Germany: 162% increase
Switzerland’s neighbours Germany also saw a significant increase in property prices over the last ten years, going up by 162% since 2010, compared to a 14.2% increase in wages.
Starting at £1,781 in 2020, prices per square metre in the country went up by £2,885 over the course of the ten years.
4. United States: 153.3% increase
The United States is one of the world’s biggest economies and was also one of the nations that saw its property prices increase the most.
Property prices have risen by 153.3% since 2010, with wages increasing by 14.2% in the same period and inflation by 1.25%.
5. Hungary: 137.8% increase
Hungary’s property prices were among the lowest in 2010 and while they remain below £2,000 per square metre, they saw the fourth-highest increase over the decade, going up by 137.8%.
The country also experienced one of the biggest increases in inflation too, with the rate going up by an average of 2.56% each year between 2010 and 2020.
6. Slovakia: 111.8% increase
Another country that had relatively low prices per square metre back in 2010 but has seen a rapid rise over the last decade is Slovakia, where the cost rose from £997 to £2,111, an increase of 111.8%.
7. France: 100.5% increase
France’s average property price rose by just more than double in the last ten years, from £3,459 in 2010 to £6,934. Although France saw one of the lower increases when it came to wages, which went up by 2.8% in the same period.
8. Portugal: 86.5% increase
Portugal’s average property price increased by 86.5% but was one of the only nations that actually saw its wages go down over the course of the last decade, dropping by 1.3% to £20,529 a year.
9. Japan: 75.1% increase
While Japan’s property prices increased by around three quarters, the country only experienced moderate rises when it came to both wages (1.1%) and inflation (0.42% on average) over the course of the last decade.
10. United Kingdom: 74.9% increase
In the UK, the average property price per square metre also went up by around three quarters, increasing from £2,469 to £4,318. Whereas, wages rose by just 0.6% and inflation by 1.97% on average.
Below you can see how the average property price has changed in the last decade in 30 countries, as well as how this compares to the difference in wages, and the average inflation rate across the last ten years.
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Average property prices per square metre sourced from Numbeo. For each country, money.co.uk took the prices for both properties in city centres and outside of city centres, taking an average of these two prices.
Average wages were sourced from OECD.Stat and refer to the average annual wage for full-time employees, converted from US dollars as of 16th August 2021.
Average inflation rates sourced from the World Bank data, taking an average of the annual rates between 2010 and 2020.