India Has the Most Accessible Property Ladder in the World

According to data from the ONS, UK house prices have risen by a huge 10% in the year to May 2021. This sharp rise in prices is welcome news to property owners, however, those looking to find their first step on the property ladder are understandably viewing this increase with dismay. In fact, 2021 has seen house prices rise in many countries all over the world, with only 3 of 40 OECD countries seeing a fall in property values. Having analysed several different factors, from the average wages to average property prices, and even the cost of utilities, it was found the most and least affordable countries for people to buy their first home. These factors have all been combined into a single Property Affordability Score, which we’ve used to rank the countries from the most affordable to the least. The top three countries where the property ladder is most accessible include India with Affordability Score: 9.33 that has the most affordable housing of all the G20, OECD and European Union countries, with a score of 9.33! Relatively low average salaries are offset by equally low property costs per square metre, with very affordable utility costs increasing affordability. Turkey is in second place, with a property affordability score of 9.29, is Turkey. A relatively low house price to salary ratio helps to keep homeownership a realistic prospect for first-time buyers in the country. Bulgaria Property takes third place with a property affordability score of 8.88, making it a great place for prospective buyers who will be able to take advantage of reasonable property prices and affordable bills, despite the country having a low average salary. The least affordable country for first-time buyers is Luxembourg, which received a Property Affordability Score of just 2.84. There’s not a lot of space in this tiny European nation, which might go some way to explaining the very expensive cost of apartments, which on average cost as much as £751.16 per square foot. Switzerland has the second most unaffordable property market, receiving a Property Affordability Score of 3.11. This wealthy country, nestled in the beautiful Alps, benefits from a pristine environment and is a highly desirable location for its Alpine scenery and high standard of living, which also helps to drive property prices up. South Korea came third from the bottom, with a Property Affordability Score of 3.94. With relatively low salaries and high apartment costs, South Koreans might find it difficult to get their first step onto the property ladder. However, once they do manage to acquire their home, they will benefit from much more reasonable utility and internet costs. The results indicate that while property values have risen dramatically over the past few decades in the most developed countries, wages have not been able to keep up, leading to a crisis of affordability for many young people and first-time buyers. On the other hand, those who do own property in those countries have experienced a huge boost to their personal finances that they would have missed out on in many other parts of the world.