According to the study, in the list of the most expensive real estate cities in Europe, Luxembourg regained first place after 2005, taking it from London, which held it in 2006. As reported by RIA Novosti, in the capital of the Grand Duchy, the average price of a standard apartment is €485,000, in London - €473,830. The third most expensive housing price is Bern, where an apartment costs on average €440,000.
The most affordable real estate prices in Europe, the sociologists noted, are in the capital of Bulgaria - Sofia, where an apartment costs on average €78,000. These prices are already beginning to attract foreign investors, who are increasingly looking at real estate in Eastern Europe. 'Sofia set a record: 94% of its residents own their own property,' the researchers note.
Sociologists see an overall trend of falling real estate prices in Europe. 'After a long period of increase, real estate prices in most European states have been gradually ceasing to grow since 2006,' the sociologists assert. If from 2003 to 2005 prices, in particular for real estate in Spain, rose by an average of 20%, then in 2006 compared to 2005 - by 6.5%. The same trend is observed in Paris, where the increase in housing costs in 2006 was about 10%. According to ERA, in Paris, which ranks sixth, the average apartment price from 2005 to 2006 fell from €300,000 to €295,000.
In some European countries, there is even a fall in housing prices. In particular, in Germany real estate became cheaper compared to 2005 by 0.3%, in Austria - by 1.2%, and in Portugal - by 3%. However, in some European capitals, rapid price increases for real estate continue. 'Thus, in Dublin compared to 2005, prices in 2006 jumped by 16% due to the favorable economic climate and high demand for housing among young city residents. In Lisbon, for the same reasons, there was a growth of 20%, and the price per square meter in the city center in 2006 was €2,400, while still being cheaper than in many European capitals,' the report says. The newspaper also notes that in Brussels prices increased in 2006 by 10.5% due to a reduction in the number of new buildings.
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