Is the European real estate market on the brink of downfall?
July 31st, 2015
According to statistics by FHB Bank the European real estate market is rather chaotic: some countries experience decreasing prices, some increasing and others like Hungary are enjoying an upswing following the turning point of the post-crisis trend.
In most European countries prices are increasing and effects of the crisis have already faded, markets are stabilizing throughout the continent.
However we can see that in some countries positive trends have already slowed down or even set on a downward path again.
Booms and bubbles
Portugal and the Netherlands have hit the bottom in 2014 and are showing upward trends, while the UK and Germany are showing signs of reaching a turning point after a positive period. The Italian market is at its lowest currently, but prices are dropping slower than before, while in France 2014 marked a 2% drop in real estate prices.
Spain and Portugal are recovering after a long post-crisis era, while Ireland and Sweden may be approaching the popping of a bubble – there are many estates offered in the market and the base rate is low, however constructions are following the booming market cautiously.
Slow recovery with risks
Looking at the whole of Europe the number of construction permits given out is decreasing in many countries, but in most of them this trend is also slowing down. In Hungary number of issued permits has been more or less steadily increasing since the beginning of 2013 with a small setback at the end of 2014.
Meanwhile the economy of the continent is getting increasingly stronger with Hungary being showing one of the strongest increases in GDP. Overall the European real estate market is in a relatively good shape but is still recovering, with a few exceptions where growth came earlier.
(Source: http://www.portfolio.hu/ingatlan/lakas/durva_eses_johet_a_lakasar-emelkedes_utan.217011.html)
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