2014 was the year of European real estate with many regions showing strong growth. According to the Global Property Guide countries that include Estonia and Ireland performed so well that they put into the shade Russia , Greece and Ukraine.
Estonia, best performer in Europe, the average price of dwellings surged by 15.3% during the year to Q3 2014, up from the 12.46% growth seen last year. House prices increased 2.51% q-o-q during the latest quarter. This was fuelled by an improving economy. InIreland, residential property prices rose 14.52% during the year to Q3 2014, a remarkable improvement from a y-o-y increase of 3.45% in the same period last year. Irish house prices rose strongly by 6.43% q-o-q in Q3 2014.
In Turkey, house prices rose by 7.51% during the year to Q3 2014, after an annual rise of 4.65% in the previous year. House prices increased strongly by 3.87% during the latest quarter.
Strong European housing markets include Latvia, with house prices rising by 4.71% during the year to Q3 2014, Lithuania (4.62%), Czech Republic (4.04%), and the Netherlands (3.89%). All showed better performance in Q3 2014 compared to the previous year. Moreover, all saw positive q-o-q growth in Q3 2014.
Croatia saw a house price rise of 2.64% during the year to Q3 2014 - a truly dramatic recovery from a decline of 17.69% during the same period last year. Portugal (1.86%), Switzerland (1.48%),Norway (1.32%) and Bulgaria (1.29%) also had price rises. All, except Switzerland, performed better in Q3 2014 compared to a year earlier. However of these, only Croatia and Portugal saw positive quarterly growth during the latest quarter.
The Balkans' good news story includes both Romania and Slovakia, with strongly falling house-price declines year-on-year, and during latest quarter housing prices up by 1.12% and 0.42% respectively.
The UK had the third highest annual increase in house prices amongst member states, behind Estonia and Ireland, according to data published by the statistical office of the European Union, Eurostat.
Estonia recorded price rises of 14.5pc between April and June compared to the same period last year. That figure was 12.5pc in Ireland and 10.2pc in the UK.
France and Spain, where hundreds of thousands of British expats and holiday makers have invested in property, performed poorly. Spain recorded price rises of just 0.8pc, while in France property prices fell 1.1pc over the period.