Zagreb vs Other European Capital Cities

[Anna]

Today's Vjesnik, the leading broadsheet newspaper in Croatia, has an article comparing property prices in different capital cities in Europe. It states that current prices for a apartment in Zagreb per square metre are, on average, at €2000. (Some top developments may even fetch €3000 per sq. m.)

According to the newspaper this is far too high and exceeds the buying power of Croatian citizens. Vjesnik mentions that the norm for Europeis for average monthly salaries to match the per square metre price of apartments. In Croatia, however, this figure is four times the average monthly salary.

Apartments are cheapest in Budapest, at €1000 per sq. m; between €2000 - €5000 per sq. m. in Ljubljana; whilst between €700 - €3000 per sq. m. in Belgrade.

Vjesnik also states that London is the most expensive city in Europe for property: the price range is €5500 - €10000 per sq. m.. Paris is second with €5000 per sq. m.; and Stockholm is marginally cheaper at €3000 - €4000 per sq. m.

[Frederick]

In Munich used appartment prices are 1500 - 2000 Euros per square meter. A new appartment in a very good part of the city costs 4000 EUR per square meter.

[Ribaric]

I've no clear idea what the answer is but I think the real question about property prices is very complex. Prices surely reflect a number of variables....

1- The available money - high salaries = high prices.
2- The desirability of the place - climate, work, security, language....
3- The complexity of buying.
4- The opportunity to live there (EG, the US is cheap due to residence laws for foreigners).
5 - Other stuff (?)

It could just be that the costs in Zagreb are similar to those in London when viewed as a ratio against average income. Maybe even more expensive.

If buying in Croatia were to be much simpler and the residency laws much less onerous then the available money will be attracted and push up prices. Which demographic profile represents the biggest foreign group of "available money"? My guess is the baby-boomer generation. Spain is much easier to move to and so that's where the available money is going.