The housing price is a topic very discussed. Why it is so high? How does the market work? The circular will give you an explanation of this phenomenon. In this article, the newspaper compares two cities: one in France and one in Ireland.
In Ireland and more precisely in Dublin, the house holding prices have been increasing for many years. This phenomenon is the same everywhere in European Capital. It also happened in France. Especially in the touristic area such as the French Riviera.
Nice is one of these examples. Buy a condo, a house or an apartment in this city is very expensive. This phenomenon expensive buying is due to specifics reason:
First, the development of new platforms such as Airbnb. Prices are increasing due to this problem. As a consequence, people who are living in this zone are not able to pay as much as richer people. This problem produces a new phenomenon called exodus. The population is going to the countryside because prices are less expansive.
The second is the lack of housing. There are too many demands for less offer. As an economic consequence, prices will increase.
The economic development of a city impacts directly the population. A new wave of people arrives with a better wage. As a consequence, the cost of living increases. So, markets increase too. As a second consequence, people have not enough money to live in the city. They have to leave it.
For example, in Ireland between 2018 and 2019 the price of a property was 2% higher than last year. In 2019, the price for one square meter in Dublin corresponds to almost 6000 euros. In comparison, in Nice, the price is 4107 euros. It’s 20% less expansive.
The fact that Dublin is one of the most expensive cities in Europe is known. As an example, this is the most expensive city for the French expatriate. For example, the following graph shows the average price for a dwelling in Dublin.
Average prices for a dwelling of district in Dublin in €
So live in Dublin is now possible only for people who live here before or people who can afford expensive houses or apartments.