Europe’s housing market is growing. According to the recently published RE/MAX Europe Housing Report, good loan conditions and incentives – especially for first-time buyers – as well as high demand and growing prices will shape the European real estate market in upcoming months.
Favourable economic conditions stimulate demand
The RE/MAX Europe Housing Report provides a brief overview of the European real estate market and its current and future price developments based on internal RE/MAX data. According to its findings, low interest rates and therefore cheap loans are currently seen in almost all European countries. This results in higher demand which is driving prices up for almost all segments and areas.
In Slovakia and Estonia for example, many new properties have been built as a result of favorable economic conditions. In Malta, there has also been a growth in the rental market due to increasing numbers of foreign employees living on the island. Markets such as Portugal, Greece and Scotland are recovering very well from recent years and show clear signs of growing stability, with hope for more transactions in the future.
Cities register steepest price increase
RE/MAX experts state that between 2015 and 2016, sales prices increased for apartments and houses. In particular, prices per square meter went up dramatically for urban apartments – up to 13% for cities in Lithuania, Germany and Luxemburg, for example – and a further increase is not out of the question. Sales prices for houses in the countryside have grown as well, and are expected to further increase in 2017 by about 4% in Austria and Estonia. For France, Greece and Switzerland, however, prices are expected to remain steady in 2017.
Rental prices also rose in 2016, by 10% for urban apartments in the Netherlands, Romania, and Spain, and by as much as 16% in Malta. RE/MAX experts forecast that rental prices for most countries will either increase or level off within the next year.
It’s all about location
One of the most important criteria for price differences is location.
Sales prices for apartments differ up to 64%, depending on whether a property is in an urban or rural area. For houses the difference is up to 44%.
About the RE/MAX Europe Housing Report
The RE/MAX Europe Housing Report provides a brief overview of the European real estate market and its current and future price development for residential sales and rental properties. All numbers are average and approximate figures sourced from internal RE/MAX data and general market information for each participating country.