European real estate prices are naturally different from a country to another. Indeed, property prices mostly depend on local economic factors: average income, unemployment rate, age of the population being three of the most impacting KPIs .
Average monthly net salaries in Europe
Average monthly net salaries in Europe differ quite a lot. Between the average 900€ per month in Lisbon, to the average 5300€ per month in Zurich, you can find Barcelona at 1400€ per month or Paris at 2300€ per month. The map below shows those disparities quite well.
So, do European real estate prices converge?
Logically, no they don’t. However in some countries such as Spain, Italy and Portugal, the graphic below taken from Idealista/data is quite disturbing. Indeed it seems that property prices in those 3 countries are in fact converging, to 1600€ per square meter. Although back 3 years ago, property prices were much higher in Italy, and much lower in Portugal, all 2 countries have now converged together.
