A Coruña Housing Prices Match Lyon Despite Lower Salaries

A Coruña Housing Prices Match Lyon Despite Lower Salaries

A 73 square meter apartment in Los Rosales, A Coruña, is listed for €270,000. For that same amount, one can buy a 74 square meter apartment in central Lyon, according to real estate listings cited in an economic forum. This comparison has sparked a debate extending far beyond bricks and mortar: how can a peripheral Spanish city match the price of a European capital with significantly higher median wages?

The unsettling data point is not the price itself, but the price-to-income ratio. One participant estimates that the average gross salary in A Coruña is around €23,000, while in Lyon it exceeds €40,000. This means the effort required to pay a mortgage in the Galician city would be nearly double that in the French one. The uncomfortable question lingering over the discussion is: are we facing a local bubble or a structural problem in the Spanish housing market?

Why does a flat in A Coruña cost as much as in Lyon?

The short answer is that it shouldn't. The long answer involves supply, demand, and geography playing tricks. A Coruña is a city of about 250,000 inhabitants squeezed between the sea and terrain that limits growth. Lyon, with 1.4 million people in its metropolitan area, has room to expand. But the market doesn't always reward logic.

Some argue that the price in Los Rosales is out of market. One participant claims a friend sold a 58 square meter flat in the area for €140,000 and struggled to find buyers. Another recalls being offered the neighboring flat for €270,000 back in 2007. Thus, the current price isn't a recent anomaly, but a constant maintained for almost two decades.

The comparison with Lyon is no accident. The French city was the capital of Roman Gaul, the Kingdom of Burgundy, and Arles, serving as a significant economic hub for 2,000 years. It leads in biotechnology, chemical industry, and microelectronics. It hosts some of France's best universities outside Paris. And, according to a participant, its median income exceeds €40,000 gross. Yet, a flat in its center costs the same as one in Los Rosales.

The Median Salary That Never Adds Up

The key lies in income. A participant calculates that the average annual gross salary in A Coruña is around €23,000, while in Lyon it surpasses €40,000. This difference of nearly €20,000 annually translates into vastly different purchasing power. A resident of A Coruña would dedicate a much larger proportion of their salary to housing than someone in Lyon. In the long run, this has consequences.

Some participants note that Galicia is a poorer region and things would be worse without Inditex. Others remind us it isn't the only major company: Finsa, Coren, Estrella Galicia, canning factories, and Pescanova exist too. But the median salary doesn't lie. Galician productivity and wages are below the French average, and it shows in the wallet.

The discussion shifted to the labor market. Some claim Lyon offers infinite opportunities, while A Coruña relies on traditional sectors. Inditex's arrival and its tractor effect created jobs but didn't raise wages across the board. The result is a city with European capital prices and provincial salaries.

Housing as a Problem for Rich and Poor

The issue isn't just in A Coruña. In Oleiros, Sada, and Bergondo, chalets that had been on the market for over a year have vanished. Previously, good chalets could be found for €350,000; now nothing is available under €450,000. Real estate hyperinflation has spread through the metropolitan area.

One participant points out that the housing crisis affects the poor, but since they are often politically marginalized, they must fend for themselves. The irony is bitter. Reality dictates that access to housing has become a class marker. Those who bought a decade ago have wealth; those who didn't are left behind.

The comparison with France isn't unique. Another mentions that prices in Switzerland are similar to Madrid or Barcelona, but with much higher incomes. The conclusion remains the same: in Spain, housing prices are disconnected from salaries. And that is unsustainable.

Is Lyon Really Cheaper Than A Coruña?

Not exactly. Lyon isn't Paris. Prices in the French capital are much higher. But Lyon isn't cheap either. What happens is that A Coruña has become extremely expensive for what it offers. The comparison isn't Lyon versus A Coruña, but the price-to-income relationship in each place.

Some argue A Coruña is more attractive than Lyon, offering beaches, quality of life, and manageable scale. Possibly. But the market pays for opportunities, not lifestyle. There, Lyon wins by a landslide.

The discussion also touched on the airport. Alvedro is a business airport with flights to Madrid and Barcelona. From Santiago, 40 minutes away, there are more destinations. Connectivity is acceptable but not comparable to Lyon, which is two hours from Geneva and four from Milan. Lyon's strategic location in the heart of Europe is an asset A Coruña lacks.

The Future: Bubble or Adjustment?

The million-dollar question is what will happen next. Some believe A Coruña has potential to thrive. It has available land in Xuxán, Monte Mero, Eirís, and Visma. They could build 15,000 or 20,000 homes without major additional infrastructure. However, developer interest has been scarce since the real estate bubble burst.

Others are more pessimistic. They believe Spanish housing prices won't drop because structural demand remains unmet. Immigration, new household formation, and lack of construction keep prices high. Meanwhile, wages aren't rising at the same pace.

The comparison with Lyon may seem harsh, but it is useful. It shows the problem isn't just in A Coruña, but in an economic model that turned housing into a financial asset rather than a right. And that, in the long term, cannot be sustained.

The striking fact: in Lyon, with an average salary of €40,000, a 74 square meter flat costs €270,000. In A Coruña, with an average salary of €23,000, a 73 square meter flat costs the same.