The European real estate market has experienced notable shifts recently, influenced by global economic trends and local dynamics. Here’s a detailed analysis of current trends and country-specific highlights.
General Overview of the European Real Estate Market
The second quarter of 2024 marked a rise in housing prices across the EU. Key figures include:
• Quarterly Growth: Housing prices increased by 1.9%, while rental rates rose by 0.7%.
• Annual Growth: Housing prices saw a 2.9% rise, with rental rates climbing by 3%.
The most significant price surges occurred in Central and Eastern Europe, with countries like Estonia, Hungary, Lithuania, and Latvia seeing property values more than double over the past 13 years.
In contrast, countries like Germany, Denmark, and Sweden experienced price declines of 9.9%, 7.6%, and 6.8%, respectively, largely due to economic challenges.
Country-Specific Highlights
Czech Republic
In Prague, property prices continue their upward trajectory:
• New Developments: Prices rose by 7.1%, reaching 158,000 CZK per square meter.
• Older Buildings: Prices increased by 13.7%, fueled by high demand and the introduction of premium projects.
Greece
Luxury holiday properties are in high demand among foreign investors, who prefer spacious, high-end homes. This trend is boosting the premium real estate segment.
Spain
The Costa del Sol in Malaga has seen a surge in property transactions, signaling a market recovery after the recent economic slowdown.
Poland
Poland’s rental housing sector continues to expand. For instance, Resi4Rent introduced 287 new apartments in Łódź, increasing rental supply to meet growing demand.
United Kingdom
For the first time in a decade, the UK recorded a decline in housing prices. This drop is attributed to economic shifts and a reduction in buyer demand.
Germany
The German real estate market is showing negative dynamics, particularly in major cities. Key issues include:
• Reduced buyer purchasing power.
• Restrictions on new development projects.
Portugal
Rising rental prices are causing social challenges in Portugal, with some residents turning to alternative housing solutions, such as living in tents.
Sweden and Finland
Housing prices in Sweden and Finland continue to decline due to reduced demand and macroeconomic pressures.
Key Trends and Market Outlook
The European real estate market demonstrates a diverse trajectory:
• Price Growth: Countries with strong demand and limited supply are seeing prices rise.
• Price Declines: Regions facing economic downturns are experiencing falling property values.
Analysts predict that these varied dynamics will persist, shaped by the unique economic and social circumstances in each country. Stay tuned for further updates as market conditions evolve.
