What to expect from Europe’s housing market: a study
The consulting company Deloitte has published a report on the state of the residential real estate market in Europe. How the pandemic affected the market and how well different countries cope with the crisis?
Deloitte research covers 23 countries – European countries and Israel, which is notable for high real estate prices and living standards comparable to Europe.
Big numbers: what professionals are waiting for
A survey of experts in the real estate market showed their positive attitude: 68% of respondents believe that by the end of 2021 the economic situation will stabilize, another 32% do not expect any changes. (That is, no one expects things to get worse.) More than half of those polled (55%) see the negative impact of the pandemic on the residential real estate market as short-lived.
When asked if construction activity in Europe will increase by the end of 2021, only one in two gave a positive answer. Three-quarters of experts said that prices will continue to rise. Half believe that rental prices will also keep up…
Leaders and outsiders
Real estate prices in 2020 rose in almost all countries, contrary to expectations.
According to Deloitte (they are, incidentally, somewhat at odds with those published in the spring of data from Eurostat), the prices rose most in Hungary – 12.34%. Germany and the Netherlands followed, where prices rose by 10.81%. Third place went to… Slovakia (9.66%).
Only two countries have fallen in prices – Italy (1.24%) and Bosnia and Herzegovina (1.54%).
The most expensive real estate per square meter in Austria – € 4,457. Second – France – €4,421. The third and fourth place have Germany and England – € 4,058 per square meter.
The cheapest Bulgaria is beloved (€ 578 per square meter). The real estate which, however, has risen significantly in 2020 – by 5%.
The most expensive city for the cost of new buildings – Paris – € 12 917. (By the way, for one meter of housing in the French capital is still possible to buy a studio on the Bulgarian Black Sea coast.) The second – Tel Aviv, the third – Munich, where the average price per square meter in new buildings reached €8,700, the fourth – London – €7,916.
According to calculations of Deloitte, the cheapest cities in Bulgaria again: a square meter of new buildings in Burgas is only € 725 (16% less than a year ago). Next comes Varna (€875 per square meter), in third place is Serbian Nis (€919), where prices for new housing for the year rose by 16.3%.