OT survey: The cost of living in Athens VS Berlin, Paris and Lisbon – Economic Post
One resident in Athens, one in Berlin, one in Paris and one in Lisbon. And that’s how jokes usually start. Only the data on the cost of living in our country it is no laughing matter.
Among the turbulent seas of constant appreciationswhat suffocates Greek households the most is the considerably increased operating expenses, the housing costs and all this in relation to perennially low wages. Lending is also at a higher level compared to the whole of Europe, as the mortgage interest rate has hit 4%, when in other countries it is at 2%.
Read also: Thousands of derelict buildings are being put to good use – They are designated for the owners
For example, the estimated monthly cost of a family of four in Berlin is 3,150 euros without rent and in Greece it is 2,586 euros. Accordingly, the average salary in Athens is 904 euros and in Berlin 2,995 euros. Berlin is 15.89% more expensive than Athens (without rent) and Paris is, on average, 136.18% more expensive than Athens. For one person, in Berlin it is estimated that the monthly cost is 922.97 euros without finance and in Athens it is 765 euros. The estimated monthly cost of a family of four in Lisbon is 2,265 euros without rent (Numbeo.com data). For one person the estimated monthly cost is 639 euros without rent. Also, Lisbon is 12.94% cheaper than Athens (without rent) and rent is, on average, 106.38% higher than in Athens.
The figures processed by OT confirm the harsh reality, where within a year inflation has increased by 10%, but wages in Greece remain at low levels, with the minimum being at 751 euros. According to Numbeo data, in 19 products (eg milk, bread), the Greek household pays 54 euros. The German pays 59 euros, with a minimum of 1,621 euros, the Spaniard with a minimum wage of 1,126 euros pays 50 euros and finally the Portuguese pays 43 euros with a minimum wage of 823 euros.
Read also: “Save for Youth”: 15% bonus for decentralization in 1,046 villages [Πίνακας]
My exact roof
From the comparison of the data, the increased cost of housing in Greece is evident, in relation to the average salary and operating costs, as well as the fact that the interest rate for a mortgage loan in Greece is comparatively higher. As an example, the purchase of a studio apartment in Athens costs 2,442 euros per sq.m. The fixed interest rate, 20 years, is not at a very high level at 4%. Correspondingly, in Berlin, it costs 8,165 euros per sq.m. with a fixed interest rate of 2%.
Likewise, the relationship between wages and going out to eat at a restaurant has evolved into a luxury expenditure. For 2 people to dine in an average restaurant (exactly) it costs 50 euros, when in Berlin and Paris it is 60 euros and in Lisbon 50 euros.
The table also shows how high the operating costs are, i.e. for electricity, water, heating, etc., since the Greek with an average net salary of 904 euros pays 246 euros for an 80-room apartment. Accordingly, in Berlin he pays 289 euros, with a net salary of 2995 euros, in Paris he pays 190 euros with an average salary of 2639 euros and in Lisbon with a salary of 1054 euros he pays 122 euros.
For commuting, Greece is cheaper compared to other cities, since the monthly pass is 30 euros, in Berlin 85 euros, in Paris 75 euros and in Lisbon 40 euros.
Read also: Rents and landlord guidelines are taking off
Burn the rents
Access to affordable housing has become a Calvary. Between 2015 and this year there is an increase of 48.7%, according to the SPI price index of Spitogatos. In the first nine months of this year, rents in Attica and Thessaloniki have increased from 1.69% to 15.38% compared to the corresponding period of 2021, according to data from the Spitogatos website.
The areas where the largest percentage change in the amount of residential rents is recorded is Agia Paraskevi, where rents show a rise of 15.99%, to 11 euros per sq.m. monthly, the Kolonaki – Lykavittos area, with rents increasing by 12.72%, reaching 15 euros per sq.m. per month, and the top 3 is completed with the center of Piraeus, a neighborhood in which house rents have increased in the last 9 months by 12.26% compared to the corresponding period in 2021.
According to the Labor Institute (INE) of GSEE, from April 2022 and after the loss of the purchasing power of the minimum wage in Greece, it ranges around 19%. The loss of purchasing power of households with a monthly income of less than 750 euros is up to 40%, while the reduction for tickets up to 1,100 euros is 9% to 14%. In the higher income brackets the loss of strength is lower than 11% and decreases as the income level increases.