THE STC 2018 REAL ESTATE INDEX
 

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The 2018 STC Real Estate Index ranks world cities based on the stability, affordability and level of taxation of their property market. Our ranking has been extended this year to include 193 world cities. We list the estimated average rental and purchase price of a 100-square-meter residential property and all the taxes involved for both residential and commercial properties.

As much as we want to compare one property market to another, let it be known that the average apartment in Paris can be very different from that of the average apartment in Moroni, in the Comoros, for example. Certain things cannot be input into the calculation, such as the quality of the building material, the degradation, and the architectural value.

Data taken from Numbeo.com

The information was taken in the last week of February 2018.

Numbeo is a survey site where users can input data.

Price to Income Ratio is the basic measure for apartment purchase affordability (lower is better). It is generally calculated as the ratio of median apartment prices to median familial disposable income, xpressed as years of income (although variations are used also elsewhere). Our formula assumes and uses: net disposable family income, as defined as 1.5 * the average net salary (50% is the assumed percentage of women in the workforce) median apartment size is 90 square meters price per square meter (the formula uses) is the average price per square meter in the city center and outside of city center

Mortgage as Percentage of Income is the ratio of the actual monthly cost of the mortgage to take-home family income (lower is better).

Average monthly salary is used to estimate family income. It assumes 100 percent of the mortgage is taken on 20 years for the house(or apartment) of 90 square meters,in which price per square meter is the average of the price in the city center and outside of the city center.

Gross Rental Yield is the total yearly gross rent divided by the house price (expressed in percentages). Higher is better.

Rent 110m2 is the average monthly price of renting a 110-square-meter three-bedroom apartment in the city center.

Buy 100m2 is the average price per square meter to buy an apartment in the city centre.

Tax information

Tax information was taken during the month of February 2018 mostly from the municipalities’ websites. You can access each reference by downloading the data.

Property Tax Residential(Home)is the annual tax levied by the municipality of a home inhabited as a main residence. It will usually exclude water and electricity consumption, but generally include waste management. Some municipalities don’t levy property tax but might levy an income tax, or the central government might tax property as a wealth tax. The estimated tax is based on the price of a 110-square-meter residential property.

Property Tax Commercial is the annual tax levied by the municipality on commercial office space, usually defined as a financial service activity. Will usually exclude water & electricity consumption, but generally include waste management. Some municipality don’t levy property tax but might levy an income tax or central government might tax property as a wealth tax. The estimated tax is based on the price of 50m2 residential property or 1m USD.

Transfer Tax Residential Property also know as Stamp Duty, is the fee levied on the transfer of a home inhabited as a main residence after 5 years of holding. It includes bother buyers and seller fees. This includes fees paid to governing bodies as a tax, stamp duty and registration fees and excludes notary fees, agent fees and documents fees.

The estimated tax is based on the price of 110m2 residential property.

Transfer Tax Commercial Property also know as Stamp Duty, is the fee levied on the transfer of a commercial office space after 5 years of holding. It includes bother buyers and seller fees. This includes fees paid to governing bodies as a tax, stamp duty and registration fees and excludes notary fees, agent fees and documents fees. The estimated tax is based on the price of 50m2 residential property or 1m USD.

Rental Income Tax on Residential Property is the taxlevied of the annual income made from leasing a residential property as an individual. The amount generally does not include deductible. For those described as “Income tax” you will need to refer to our Taxation Index. Rental Income Tax on Commercial Property is the taxlevied of the annual income made from leasing a commercial property as an individual. The amount generally does not include deductible. For those described as “Income tax” you will need to refer to our Taxation Index.

Capital Gain Tax on Main Residence is the tax on the gains made on the sale from the one’s main residence after 5 years of holding. Does not include deductibles.

The information related to real estate other than tax were taken from Numbeo.com. https://www.numbeo.com/property-investment/

Tax information’s were taken from municipalities websites, or in rare cases from http://www.doingbusiness.org/rankings

Download Data to view source link for each entry.