MILANO – What type of house can you afford if you earn 2000 euros a month? It depends on where you are. The proptech startup Casavo conducted a comparative analysis Milan, Rome, Madrid and Paris to understand what type of house you can buy with a salary of 2,000 euros net per month and taking out a 30-year mortgage at 80% (survey carried out in January 2024).
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The center of Milan is off limits
Starting from Italy, the center of Milan remains essentially inaccessible. In the Lombardy capital, in neighborhoods such as Sant’Ambrogio and Parco Sempione it is possible to buy a new apartment 20 square metersa completely unreasonable housing solution, a Rome if you choose areas like Celio and Monti you get to 30 meters. Madrid is the city that offers the most opportunities in the centre: in districts such as Arganzuela or Salamanca, you can buy by earning 2,000 euros net per month and taking out a 30-year mortgage at 80%, you can opt for a new studio or two-room apartment of 33 square metres. Parisians aren’t doing well either: the available square meters are always negligible and the difference between the center and the suburbs is practically non-existent. In fact, they range from 12 square meters for a new studio apartment in the 4th arrondissement, to 15 square meters in the 15th, up to a maximum of 17 square meters in the 19th arrondissement. And the French capital is really full of these apartment cuts, if you can call them that.
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Suburbs to be renovated
Examining the suburbs, those who earn an income of 2,000 euros a month have the possibility of investing in a two or three bedroom apartment to renovate. For example, on the outskirts of Rome, in neighborhoods like San Paolo and Cinecittà, it is possible to purchase a three-room apartment of 74 square meters. Likewise, in neighborhoods outside the M-30 in Madrid (the ring road considered the dividing line between the center and the outskirts of the city), such as Moratalaz or San Blasyou can find similar opportunities.
In Milan, you can get to buy a 50 meter two-room apartment in areas such as Lorenteggio and Gorla. Even in the suburbs, the solutions that Paris offers to a young man who earns 2000 euros a month are unreasonable: 20 square meters in need of renovation in the 19th and 20th arrondissements.
“Paris is a metropolis that has been proving unaffordable for some time – values per square meter exceed 13,000 euros in the most central arrondissements: we expect the Olympics arriving in July to further increase attractiveness and therefore prices. Madrid and Rome are interesting markets to evaluate a purchase, especially for those willing to choose properties to renovate in areas that are not strictly central. Milan, on the other hand, is in constant turmoil: despite constantly growing prices – we are talking about +3.7% in January 2024 compared to the same month a year ago – the city offers interesting investments especially in areas where strong redevelopment is expected in the next 5-10 years,” he comments Victor Ranieri, chief operating officer of Casavo.
Prices per square meter
But what are the average prices per square meter? In Madrid, in January 2024 the average price of residential properties was 4,100 euros per meter, an increase of 7.8% compared to the previous January. Madrid has witnessed a remarkable buzz of new construction projects aimed at meeting the growing demand for high-quality housing and office space.
Attention in the real estate sector is focusing in particular on innovative and sustainable initiatives. An emblematic example is represented by the Madrid Nuevo Norte project, an ambitious urban redevelopment operation located in the northern area of the capital.
Milan has recorded a constant increase in prices in both the residential and commercial real estate sectors. In January 2024, the average price per square meter for residential properties for sale was 5,300 euros, an increase of 3.7% compared to the previous year (5,100 euros/m2). This trend is driven by several factors, including increased demand, limited supply in some neighborhoods and locations, and domestic and international buyer interest in investing. The city is constantly evolving thanks to urban redevelopment projects that concern entire areas and neighborhoods, such as Porta Nuova and Scalo Farini.
Unlike Milan, the real estate market in Rome experienced stagnation in 2023, with stable prices in the last two years and almost zero growth, standing at 3,300 euros per square meter.
Finally, the Ville Lumiere: here buying a house is now a luxury for a few, even if it is also necessary to take into account the difference in salaries, which are on average higher, even up to 60% compared to Milan. The average price per square meter for a property in Paris varies depending on the arrondissement: for example, for an apartment in neighborhoods such as the 19th and 20th arrondissements, located in the north-eastern part of the city, it amounts to around 8,800 euros compared to to almost 13,000 euros in the Marais (4th arrondissement).
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– 2024-03-28 19:17:54
