Photo: PixabayBuying a 60 square meter apartment now exceeds the budgets of those earning an average annual income in most of the world's metropolises. The situation is similar in the real estate market in Serbia, where those who receive an average salary and who want to buy an apartment in Belgrade, now need a little less than 18 years to pay it off, and that is if they set aside their entire monthly earnings for it.
As for the world's metropolises, the picture is not a bit better. As the latest report of the Swiss investment bank UBS "UBS Global Real Estate Bubble Index" in Hong Kong shows, those who earn twice the monthly salary have great difficulty in affording an apartment of that size, and the ratio of price per square meter to income is 10:1. blic.rs reports.
So in Hong Kong, those who receive an average salary need about 24 years to pay off an apartment, in Paris 15, in Tokyo 14 years, London 13, Tel Aviv 12... On the other hand, if we look at the bottom of the UBS list, buying an apartment is relatively feasible in Los Angeles (where it takes nine years to pay it off), Dubai (where it takes about six years), Madrid and Miami, where average citizens only have five years to pay off real estate.
For homebuyers in these cities, affordability also depends on mortgage rates and amortization obligations. If interest rates and amortization rates are relatively high, the burden of monthly income can be even difficult in cities with low price-to-income multiples such as e.g. the United States of America, according to the UBS report.
THE AVERAGE PRICE OF A NEW APARTMENT IN BELGRADE 134,220 EUR
According to the latest report of the Republic Statistical Office (RZS), the average monthly income in Serbia in July was 73,114 dinars. Data on the average prices of apartments in Belgrade from the last semi-annual report of the Republic Geodetic Institute (RGZ) show that the average price per square meter in new buildings in Belgrade was 2,237 euros, and in old buildings 1,732 euros.
In one year, the average citizen of Serbia, who receives that average salary, earns 7,479.5 euros. The average price of a 60 square meters apartment in a new building is 134,220 euros, and in an old building it is 103,920 euros.
This means that those who receive an average salary, if they set aside all of it to pay for this apartment, need a little less than 14 years (according to Blic's calculations, 13.89 years) for an apartment in an old building, and almost 18 years for an apartment in a new building (i.e. according to Blic's calculation, 17.9 years).
Source: blic.rs
