Top 10 Countries With Most Affordable Housing In The World

House prices fell by 5.3% in the year to September before rising 0.9% in October – its highest monthly increase in a year – according to Nationwide.

The housing market still has some momentum and prices have climbed over the past year. But surging mortgage rates and the cost of living crisis have hit household budgets. And the rate of property price growth had been stalling, even falling.

For a detailed overview of trends in the housing market in different countries, read our article 30 Countries with Most Affordable Housing in the World.

10. Estonia

Affordability Index: 107.05

Profitability of Ownership Index: 117.25

Average Score: 12

In the first half of 2023, the number of contracts for sale and purchase agreements in Estonia fell by 24.1%. It is also predicted that in 2023, the price per square meter can go up to $3,500 in core areas of the country and $2,500 in other areas.

9. Denmark

Affordability Index: 104.03

Profitability of Ownership Index: 118.16

Average Score: 11

In June, the median selling price of a house in Denmark stood at $437,000, an increase of 152.2% from 2022. Meanwhile, the median sale price per square foot saw a rise of 15.9% in 2023 compared to 2022, currently standing at $164 per square foot.

8. Belgium

Affordability Index: 103.25

Profitability of Ownership Index: 117.78

Average Score: 9.5

By the end of July 2023, the average price per square meter of a typical house in Belgium was over $2,000. Apartments were priced at over $3,000 per square foot. However, the prices can greatly vary across the country, with Brussels being the most expensive region and Hainaut the most affordable.

7. Sweden

Affordability Index: 100.64

Profitability of Ownership Index: 118.57

Average Score: 9.5

In 2022, the housing price index in Sweden saw a decline of over 1%, which contrasts with the more than 15% increase recorded in 2021. As a result, the average value of an apartment dropped from $250,000 to around $240,000. Currently, houses in the popular areas of the country are priced at around $5,000 per square meter.

6. Poland

Affordability Index: 94.72 

Profitability of Ownership Index: 108.91

Average Score: 6

In June 2023, the number of apartments rented in Poland jumped by 75% from April 2022, largely due to an influx of Ukrainian refugees. The cost of a square meter of property in the country is currently around $3,000.

5. South Africa

Affordability Index: 93.65

Profitability of Ownership Index: 103.62 

Average Score: 5

During the first two months of 2023, nominal house prices in South Africa rose by 2.5% from 2022. However, while the average price of a standard house stood at approximately $74,000 in the last quarter of 2022, it saw a 1.5% decline by the end of the third quarter in 2023.

4. Italy

Affordability Index: 88.68

Profitability of Ownership Index: 103.14

Average Score: 4

In 2023, a standard house in Italy can be bought for an average of around $380,000, assuming it doesn’t exceed 2,000 square feet in size. This translates to a rate of around $190 per square foot. Housing prices in the country tend to remain stable, with only small increases. Between 2022 and 2023, a modest rise of 1.8% in average house prices was observed.

3. Romania

Affordability Index: 66.46

Profitability of Ownership Index: 116.68

Average Score: 4

The housing market in Romania is experiencing declining demand, which has led to reduced residential activity. In 2022, the average price of a house in the country fell by 7.49% from 2021, to around $1,700 per square meter. This marked the biggest decline the country has seen since 2013.

2. Finland

Affordability Index: 86.13

Profitability of Ownership Index: 94.16

Average Score: 2.5

Rising interest rates and a slowing economy are weakening the housing market in Finland. The average price of homes throughout the country fell by 5% in the third quarter of 2022 to $2,784 per square meter. This rate remained stable until the end of the year.

1. South Korea

Affordability Index: 81.92

Profitability of Ownership Index: 102.81

Average Score: 2.5

In January 2023, the average price of a home in Seoul, South Korea, was $680,000. Apartments were even more expensive, at an average price of $900,000. In other cities across the country, homes were priced at around $8,000 per square meter. Despite these high prices, South Korea is still one of the cheapest countries to live in the world, with a high standard of living.

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