Prices for Standard Homes
Are locals able to pay?
How much is one sq.m. of a standard 2-bedroom apartment when measured in local labor hours. We converted US$ prices per sq.m. into labor hours. We researched the local GDP per capita and divided by annual labor hours. This reflects local purchasing power. For more details, see our Methodology.
When considering local wealth and purchasing power related to homes, we find tourism destinations where foreign buyers inflate residential prices, beyond local purchasing power. Cambodia, Thailand, Nicaragua, Guatemala and Belize are top examples for this sad reality!
On a different scale, London is the only city in Europe in this top ranking. One standard sq.m. in London corresponds, in average, to1,360 labor hours in the United Kingdom.
This measure also helps us understand overvalued markets, because it establishes a relationship between real estate prices and local purchasing power. Chinese cities such as Beijing and Shanghai appear in this ranking, but they are not seen as cities which attract global buyers, as is the case for others in this ranking.