France, the country where real estate is the most overvalued
The latest study from The Economist magazine shows that on a European scale, French real estate obtains the largest difference between prices and rents. A gap also visible with income ...
(LaVieImmo.com) - The fall in prices recorded last year can do nothing: French real estate is still largely overpriced. This is what the study of the newspaper indicates, which notes a difference of 50% of the prices compared to the rents, and of 35% compared to the incomes. In the price-to-rent ratio, France is the 4th most over-rated country in the world, behind Canada (78%), Hong Kong (69%), and Singapore (57%). France even takes first place when it comes to putting the cost of stone in perspective with income, ahead of Canada (34%) and the Netherlands (33%).
In comparison, in Spain, where the market is experiencing an unprecedented crisis, the overvaluation is 20% in both cases. The situation is however more delicate than in France, recognizes The Economist: "any fall in house prices in France should be modest compared to Spain", analyzes the study.
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