Germany France & Nordics In House Price Recovery

  • 13 years ago
  • Uncategorized

Property markets across Europe are, on the whole, recovering.  That is the conclusion of a new report from the Royal Institute of Chartered Surveyors (RICS) which outlines dramatic differences in property performance across the continent.

Whilst some countries are booming, others are still experiencing a tough property market, the report found.

Property in France rising in value in real terms

The RICS European Housing Review 2011 found that Germany, Belgium, France and the Nordic countries all experienced rises in real house prices in 2010.

However, whilst the property markets in France and other countries were recovering, some markets were still experiencing falls in value.  Cyprus, Hungary and Ireland experienced falls as did Portugal, Greece and Spain.  Other countries that reported slight property prices decreases included Italy, Poland and the UK.

One of the factors that the report identifies as a contributing factor is the reduction in house building all across Europe.

Mortgage availability hampering recovery

Problems obtaining mortgage finance have also prevented many buyers across Europe from buying property over the last two years.  The author of the RICS report, Michael Ball, Professor of Urban and Property Economics in the School of Real Estate and Planning, University of Reading, believes that this is a major factor affecting property prices.

Professor Ball said: “Complete recovery will not occur until housing markets are fully functioning again: with plentiful mortgage finance, revived house building and extensive market turnover throughout all sectors. Unfortunately, at present the foundations for such a recovery are still not in place in many parts of Europe.

“As many of Europe’s housing markets edge their way out of the worst of the downturn, their individual performances inevitably show variations and uncertainties. Extensive cross country differentiation across Europe’s housing markets is also the norm, which the simultaneous boom through much of Europe in the mid-2000s tended to obscure.

He added: “Europe’s housing markets are not yet in equilibrium and there are likely to be continuing surprises along the way until housing markets return to a broader and more stable footin

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