Property Price-to-Income Ratios Europe 2026

Ireland's property price-to-income ratio of approximately 10× is the worst in Western Europe — and in Dublin specifically, reaches 12-15×. The structural causes are well-documented: Ireland built approximately 22,000 homes in 2024 versus an estimated requirement of 52,000/year to meet demand. REIT (Real Estate Investment Trust) institutional purchases — favoured by Irish REIT tax incentives — absorbed 25-30% of new apartment completions in Dublin at peak in 2021-2022. Vulture funds (Kennedy Wilson, Ires REIT, Harrison Street) purchased significant residential stock. The Irish government's 'Croí Cónaithe' and 'Help to Buy' schemes provide first-time buyer support but are insufficient against structural undersupply. Demographia International Housing Affordability Survey 2025 ranks Dublin as one of the top-5 most unaffordable cities globally. The PTI problem is particularly acute because Irish mortgage rules (Central Bank of Ireland) limit borrowing to 4× gross income — forcing buyers to find large deposits on properties that cost 10× income.

Paris median property price approximately €10,000-11,000/m² (central arrondissements) × 50m² typical 1-bed = approximately €500,000-550,000. Paris median individual income: approximately €28,000-30,000/year. PTI: approximately 17-20×. London median property price approximately £519,000 (Halifax 2025). London median individual earnings: approximately £37,000-42,000. PTI: approximately 12-13×. Both cities have crossed the threshold where the primary buyers are not workers in those cities — they are: inheritors of family property (generational wealth transfer); dual-income households where both partners earn well above median; foreign investors; and corporations (buy-to-let portfolios). This means the cities' economies become increasingly dependent on highly paid sectors (finance, tech, consulting, law) as lower-paid workers are priced out. Paris has seen net emigration of approximately 80,000/year from the commune proper to suburbs and secondary cities since 2015.

Warsaw and Kraków residential property prices have risen dramatically: Warsaw average apartment: approximately PLN 15,000-18,000/m² (€3,500-4,200) × 50m² = approximately PLN 750,000-900,000 (€175,000-210,000). Warsaw average gross income: approximately PLN 8,000/month = PLN 96,000/year. PTI: approximately 7.8-9.4×. This is a massive deterioration from the PLN 5-6× ratio of 2015-2019 — when Warsaw was one of Europe's most affordable capital city property markets. Drivers: rapid economic convergence driving wage inflation; construction cost increases (materials, labour); population growth in Warsaw as internal migration continues; and post-COVID demand shift to larger living spaces. The NBP (Narodowy Bank Polski) raised rates to 6.75% in 2022-2023 to combat inflation, severely restricting mortgage access — rates now declining but affordability remains stretched.