World ranking: how many years do you have to work to buy an apartment and what place does Buenos Aires occupy

The Swiss Bank UBS shared its annual Real Global UBS Estate Bubble Index report, which shows the panorama of the real estate market in different cities of the world and also measures the risk of a real estate bubble based on certain patterns.

Among the aspects that were analyzed the most, are the dissociation of house prices with income, rental income and certain imbalances in the real economy such as excessive liquidity or low rates that encourage debt and mortgage loans .

In order to determine the relationship between income and home values, UBS considered the number of years a service sector worker should spend to acquire a 60 m2 apartment in the vicinity of the city center.

The 2021 ranking coincides with last year’s edition and places Hong Kong in the first place, with 20 years of work required to buy a property of these proportions, while the podium is completed Paris and London: in the French capital you have to work 17 years and in the English capital 14.

At the opposite end is Miami, as the city with the best relationship between wages and housing prices, since only four years of income to acquire a unit of 60 m2.

Also two other North American cities are among the most accessible to acquire a property: The angels, with five years’ salary, and Boston, with six years, sharing that amount with Dubi, Milan, Madrid, Warsaw and Toronto.

What happens in the case of Buenos Aires

The specialized site Real Estate Report made a comparison of the real estate market with the variables of the Swiss bank to evaluate where in the ranking will Buenos Aires be located.

Taking into account the REMAX / UCEMA index, where the m2 has a price of US $ 1950, the value of a 60 m2 unit will reach US $ 117,000. If this data is crossed with the average salary of workers registered in the private sector until last August, the number of paid years to acquire an apartment increases to 20. And in this way, the Argentine capital will share the first place in the ranking with Hong Kong.

Regarding the number of years an apartment must be rented in order to pay its purchase value -considering the sale value of the same 60 m2 unit and crossing this data with the average rental profitability in each city-, the ranking will place Buenos Aires in the first place, with the need 44 years of lease in order to recoup the investment, surpassing Zurich that requires 40 years, being the first city of those selected by the UBS for the preparation of its report.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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