What Eurostat data show by country
The trend in Europe's property market is changing, with prices showing clear signs of easing, after a sustained rally since the early 2000s. However, in Greece the trend remains upward and estimates insist that it will continue at least for this year and into 2025.
According to Eurostat, there is a change in the data on the real estate market in Europe, which seems to affect Greece at a later stage. Analysts say that the upward cycle that started in the early 2000s is beginning to come to an end.
In Greece, however, it seems that there are "resistors", due to the fact that prices in our country, for a while, did not follow the rise. Because of the memoranda, prices not only did not increase, but followed a downward trend.
In particular, in the first quarter of 2024, house prices, as measured by the House Price Index, fell by 0.4% in the euro area and rose by 1.3% in the EU, compared to the same quarter of the previous year.
The reductions
It is worth noting that this is a decrease for the second consecutive quarter. In the fourth quarter of 2023, house prices fell by 1.2% in the euro area and rose by 0.2% in the EU. Moreover, in the fourth quarter of 2023, compared with the same quarter of 2022, house prices fell by 0.1% in the euro area and rose by 0.4% in the EU in the first quarter of 2024.
The picture across Member States is mixed in terms of price developments. In particular, seven countries showed an annual decrease in house prices in the first quarter of 2024, while nineteen showed an annual increase.
The largest price decreases were observed:
Luxembourg: 10.9%
Germany: 5.7%
France: 4.8%
In contrast, the largest increases were recorded:
Poland: 18%
In Bulgaria: 16%
In Lithuania: 9.9%
Compared with the previous quarter, prices fell in eight Member States and rose in eighteen.
The largest decreases were recorded:
Denmark: 2.5%
France: 2.1%
Slovakia: 1.7%
The largest increases were recorded in:
Bulgaria: 7.1%
Hungary: 5.1%
Poland: 4.3%
EU house prices and rents followed a similar path between 2010 and the second quarter of 2011, but are now evolving differently. While rents increased steadily until the second quarter of 2023, house prices followed a different pattern, with periods of decreases and rapid increases.
According to the Eurostat release, after a sharp fall between the second quarter of 2011 and the first quarter of 2013, house prices remained stable between 2013 and 2014. This was followed by a rapid rise in early 2015, with house prices rising faster than rents until the third quarter of 2022. From the fourth quarter of 2022, house prices fell for two consecutive quarters before rising again in the second and third quarters of 2023. This was followed by a slight decline in the fourth quarter of 2023 before another rise in the first quarter of 2024.
Between 2010 and the first quarter of 2024, house prices increased by 49% and rents by 24% in the EU.
Comparing the first quarter of 2024 with 2010, among the EU countries for which data are available, house prices increased more than rents in 20 countries.
House prices more than doubled in Estonia (223%), Hungary (207%), Lithuania (170%), Latvia (140%), the Czech Republic (125%), Austria (108%) and Luxembourg (101%).
A decrease was observed in Italy (8%) and Cyprus (1.2%).
The trend in rental prices:
Rents rose in 26 EU countries, with the highest increases recorded in Estonia (201%), Lithuania (174%) and Ireland (104%).
It is striking that the only decrease in rental prices from 2010 to date has been in Greece (19%).
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