The European real estate market has seen crisis and quick pitfalls, but proved to be strong until today.
In fact, as we explain in this article, the growth rate indicates positive predictions until 2027.
Furthermore, more and more agencies have understood the importance of the online marketplaces and are now competing to gain visibility.
But the housing market is definitely dependent from other financial factors.
The EU’s average unemployment rate positively fell from 11% at the beginning of 2013 to 6.3% in Q3 2019. The evolution of the labor market, together with an inspiring economic outlook translated into higher money available for landlords and greater consumer confidence.
The strengthening and restructuring of the European banking sector also helped to improve credit availability. All this has increased demand for housing.
This paved the way for the current uptrends we see in prices for several European residential markets.
The result? An encouraged demand for property to be an investment asset.
The main proof lies in the fact that international and institutional investors have intensified their participation in some real estate markets (including residential markets) over the past few years.
Profitability became a goal and being a house owner became a status-symbol.
Yet, households in Denmark, Germany and the UK are spiking a bit too much. For the euro area as a whole, the affordability ratio (house prices vs household disposable income) is slightly higher than the historical average.
An IMF study shows that house prices in different markets move in tandem and in the same direction.
Although the residential markets develop independently in each country, there is continuous convergence of European economies and close interconnections between them.
For example, two other countries recorded an average price of over 4,000 EUR last year: Germany and United Kingdom.
Finally, good news for investors are in the air. Europe’s residential real estate market is expected to grow at a CAGR of 9% during the forecast period 2022-2027.
There is huge competition between the residential real estate companies in Europe.
The sales proportion of residential real estate properties through online channels grew consistently because of the rising internet penetration, growing demand, surging middle-class youth population, increasing personal disposable incomes, and opportunities offered by government infrastructure investments.
If you are ready to exploit the housing market opportunities, check out this page dedicated to agencies’ listings.
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