A recent study by BestBrokers.com has revealed that Denmark offers the shortest time to save for a home in Europe, with the average property requiring the equivalent of 114 net monthly salaries to purchase. The report, which assessed property affordability across 62 countries, considered factors such as average income, property prices, inflation, and real mortgage interest rates (adjusted for inflation).

Denmark Leads for Affordability

According to the findings, a 100-square-meter property in Denmark is the most affordable in Europe relative to wages, despite the country being one of the EU’s most expensive in terms of goods and services. Eurostat data from 2023 indicated that prices for goods and services in Denmark were 43% above the EU average. However, high average earnings — the seventh-highest in Europe — offset the cost of housing, making homeownership more attainable.

Ireland and Sweden followed Denmark as the second and third most affordable European countries, requiring 123 and 129 net monthly salaries, respectively, to purchase a 100-square-meter property. This translates to roughly 10 years of annual earnings.

Challenges in Eastern Europe

At the other end of the spectrum, Slovakia and the Czech Republic were identified as the least affordable countries in Europe for homebuyers. In Slovakia, the average home costs 297 monthly salaries, equating to nearly 25 years of wages. For individuals saving half of their income, it would still take 50 years of disciplined saving to afford a family home.

Global Affordability Rankings

The report extended its analysis beyond Europe, naming South Africa as the world’s most affordable country to buy property relative to wages. In South Africa, a 100-square-meter home costs 71 monthly salaries, or just under six years of earnings. The United States ranked second, requiring 76 average monthly salaries to purchase a home, though property prices vary significantly across states.

Nepal and Turkey ranked as the least affordable countries globally. In Nepal, 684 monthly salaries are needed to buy a home, while in Turkey, the figure is 631, equivalent to over 52 years of income.

A Theoretical Assessment

BestBrokers.com clarified that their analysis provides a theoretical perspective, excluding living costs such as food, rent, childcare, and other expenses. It offers a snapshot of property affordability, but real-world factors could significantly impact the timeline for homeownership.

Caution Advised

The report serves as a guide but cautions readers to consider their circumstances before making financial decisions. Housing affordability is influenced by local economic conditions, and saving strategies will differ widely across regions.

This analysis highlights disparities in property affordability and underscores the significant challenges faced by aspiring homeowners in many parts of the world.

The UK’s traditional Boxing Day sales saw a significant decline in physical store footfall this year, with the rise of online shopping and all-year deals overshadowing the once-iconic shopping event. Several major retailers, including John Lewis, Next, Marks & Spencer, and Aldi, also chose to remain closed on Boxing Day, further reducing in-store activity.

Data from MRI Software revealed that Boxing Day footfall across UK retail destinations dropped by 4.9% compared to 2023. High streets experienced a steeper decline of 6.2%, while shopping centres saw a 4.2% reduction in foot traffic.

Retail Sector Under Financial Strain

The decline in Boxing Day shopping is exacerbating financial stress for UK retailers, with many already struggling amid tough economic conditions. Corporate restructuring firm Begbies Traynor reported that 2,124 retailers faced financial distress in the first 11 weeks of the fourth quarter, a slight decrease from 2,142 last year but markedly higher than the 1,696 reported in the third quarter of 2024.

Julie Palmer, a partner at Begbies Traynor, highlighted the compounded challenges in the sector, stating:
“The weaker-than-expected retail sales performance in November, traditionally a critical month, underscores the tough trading conditions as consumers hold off on purchases amid low confidence and rising prices. Measures from the Autumn Budget, such as increased National Insurance Contributions and minimum wage hikes, will further strain businesses, likely leading to elevated insolvency levels in 2025.”

Changing Shopping Trends

Boxing Day, once synonymous with massive in-store discounts, is increasingly becoming a day for relaxation, family time, and travel rather than shopping. Cold and wet weather, coupled with the convenience of online retail, discouraged many from venturing out.

The surge in online shopping has reshaped consumer habits, with many preferring the ease of browsing deals from home. Retailers have responded with year-round discounts and steep online offers during holiday seasons, reducing the appeal of traditional end-of-year sales events.

This shift has led to mixed outcomes. While online discounts have helped attract shoppers and stabilize sales for some retailers, it has undermined the allure of Boxing Day as a physical shopping occasion.

Broader Economic Pressures

Higher interest rates, soaring inflation, and geopolitical uncertainties have dampened consumer sentiment, causing shoppers to prioritize essential spending over big-ticket purchases. At the same time, retailers are grappling with rising operational and labor costs, further squeezing profit margins.

As the UK retail sector faces mounting challenges, the decline in Boxing Day sales symbolizes a broader shift in consumer behavior and highlights the urgent need for adaptation in an evolving marketplace.

As 2025 begins, global stock markets are poised for another year of potential rallies, building on the record highs achieved in 2024. Analysts predict that easing inflation, decreasing interest rates, and evolving market dynamics will play key roles in driving performance. However, risks remain, ranging from sovereign debt issues to geopolitical uncertainties.

Market Drivers

Global equities surged in 2024, fueled by advancements in generative artificial intelligence and robust economic recovery. The positive momentum is expected to carry into 2025, with investment firms like Brooks Macdonald forecasting that cooling inflation and interest rate cuts will sustain market growth.

In the U.S., the possibility of extending or enhancing tax cuts could further boost markets. Chris Crawford, managing partner at Crawford Fund Management, also pointed to Bitcoin’s mainstream adoption as a growing trend.

Investment director Russ Mould from AJ Bell highlighted the changing market rules, largely driven by AI, urging investors to adapt their strategies to capitalize on these shifts.

Risks and Challenges

Despite the optimism, challenges loom on the horizon.

1. Sovereign Debt:
   High debt levels in major economies could threaten growth. The U.S. debt-to-GDP ratio has reached 123%, with the annual interest burden exceeding $1 trillion. Analysts warn that rising bond yields or prolonged higher interest rates could strain economic stability.
2. Trade Developments:
   President-elect Donald Trump’s proposed tariffs could impact global trade, particularly with China and the eurozone. While some analysts believe these measures may remain targeted, disruptions to supply chains and inflationary pressures in the U.S. are potential concerns.
3. Currency Dynamics:
   A strong U.S. dollar, driven by reduced trade deficits, could lead to global liquidity challenges. Emerging markets, which often borrow in dollars, may face increased debt-servicing costs.

Shifting Market Trends

The dominance of tech giants—dubbed the “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla)—may wane in 2025. Analysts caution that these companies’ lofty valuations could face pressure from unexpected recessions or sustained inflation.

Crawford predicts that small and mid-cap equities, which have underperformed in recent years, could attract renewed investor interest.

Mergers, Acquisitions, and IPOs

The year is expected to see a wave of mergers and acquisitions, driven by relaxed regulations and favorable credit markets. IPOs, too, are anticipated to make a comeback, potentially drawing generous valuations.

While optimism prevails, analysts advise caution, urging investors to stay vigilant as market dynamics evolve.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a financial expert for tailored guidance.