Advertise Here
Advertise Here

European Housing Market Adjusts To New Realities And Opportunities According To New RE/Max Report

RE/MAX Europe, the real estate network represented by over 30,000 agents and 2,400 offices in 40 countries, today releases its Q3 European Housing Insights Report. The report – which leverages RE/MAX Europe data and regional insights – shows that the buyer’s market is continuing to intensify and that property energy efficiency is becoming a top factor in property valuation, alongside location.

Key insights consider pan-European trends as well as more in-depth analysis of Croatia, Czech Republic, Spain, and Turkey. These include:

  • Price Trends: Listing prices in major European cities (Spain, Germany, Portugal, France, Italy) witnessed a 0.9% decline in this quarter, indicating a shift towards price stabilisation.
  • Rental Market: EU rental listing prices increased by 0.7%, driven by supply shortages and challenging lending conditions for property purchases, pushing buyers towards renting.
  • Foreign Investment: international buyers continue to significantly impact demand and pricing.
  • Construction Sector: Rising interest rates and high material costs are significantly impacting the industry. Coupled with market volatility, this is deterring investors and hindering project completions in Central Europe. The updated EU Energy Performance of Buildings Directive (EPBD) adds to complexities and has exacerbated difficulties.
  • Energy Efficiency: with the EU setting minimum standards through the EPBD, energy efficiency is becoming a critical factor in property evaluations and mortgage approvals.
  • Advisory Services: real estate professionals provide buyers and sellers guidance on market conditions and connections to experts to assess costs of retrofitting and renovation, to ensure lasting value of property investments.

Q3 2023 has seen sellers and buyers continue to adapt to inflation and higher interest rates. The number of transactions is declining as sellers adjust to slower sales and buyers face lengthier financing processes.

European property markets displayed diverse trends, with each uniquely adapting to the changing financial landscape:

  • Subtle Price Adjustments: Portugal, Germany, Italy showed minor listing price fluctuations of +0.1 per cent, -0.2 per cent, and -0.2 per cent respectively compared to Q2 2023.
  • Notable Price Trends: Spain, the Czech Republic, and France experienced listing price declines of -1.9 per cent, -2 per cent and a -3.8 per cent from Q2 2023.

Michael Polzler, CEO at RE/MAX Europe, said: “We’re seeing the market continue to shift from historically low interest rates to a buyer-focused era, with downward pressure on demand and prices. The importance of energy efficiency has come to stay, and is a determining factor in a property’s attractiveness and value alongside location.

“It is critical for new builds and is rigorously evaluated in existing properties. At RE/MAX Europe, our foremost commitment is to deliver an exceptional client experience. Staying ahead of these market trends is crucial in our mission to guide our clients and contribute to a vibrant European housing market.”

The European Housing Insights for Q3 is available at the RE/MAX Europe website via https://www.remax.eu/en/blog/european-housing-insights-q3.

Related articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share article

Latest articles

Newsletter

Subscribe to stay updated.


Notice: ob_end_flush(): Failed to send buffer of zlib output compression (0) in /home/heatzone/specifymagazine.co.uk/wp-includes/functions.php on line 5373