Europe: rising prices, but rents more
Although the situation we are experiencing is truly anomalous, it is however necessary to carry out an analysis relating to the performance of the European real estate market, compared to last year. It is known that Coronavirus has put health and the economy in crisis, without leaving real estate immune from this '' contagion ''. In the previous news we have reported the general situation of various European countries which, currently, are facing numerous critical issues. Today we will make a comparison compared to Europe in 2019, always in the real estate market. Finally, the focus will be on the European country that first adopted very restrictive security measures: Italy.
So, if you are ready, we can also inaugurate our column today!
Eurostat data (European Union statistical office responsible for publishing European statistics and quality indicators) seems to be clear. While house prices are rising in most European countries, a far more pronounced situation is that of rental contracts. In terms of percentage ratios, the latter seem to have increased exponentially. Especially in the peninsula most affected initially by the Covid-19 phenomenon. We therefore enter to analyze Italy in the European context. Peninsula house prices tend to be below the European average. In fact, if in many member countries there were + 4.3% and 4.7%, in Italy it was -0.2% (compared to the same period of last year).
If we broaden the reference time frame (thus taking into consideration the period from 2007 onwards), the greatest European growth has affected the following countries:
• Austria (+ 88.4%)
• Luxembourg (+ 84.8%)
• Sweden (+ 80.6%)
Italy, on the other hand, already in the previous period, returned to the down countries, together with Greece (-35.6%), Romania (-26,%) and Ireland (-16.9%). A collapse obviously due to various reasons, first of all the world economic crisis.
But if so far we have focused on the sales market, now we will get to the heart of our section. The rental market, in fact, records a diametrically opposite situation.
European growth has always been constant, despite the most critical period for everyone, which has a precise year: 2008. What intrigues us is precisely the trend of the lease curve. Significantly higher than that of the houses for sale.
Still comparing the same current period, compared to the historical one of the previous years, it is inevitable to note that the rents have increased in 26 EU states. Among these, the most emblematic are mentioned:
Lithuania (+ 101%),
Czech Republic (+ 79.3%)
Hungary (+ 70.8%)
It's Italy ? This country too confirms the upward trend, but unfortunately too weak to speak of a real recovery. An average that is too distant from the European one, which, however, must also be analyzed in the historical context we are experiencing.
In general, therefore, it seems that rents are the most popular in Europe but ... how will it all evolve? To answer this question, just keep following our Blog!
So, if you are ready, we can also inaugurate our column today!
Eurostat data (European Union statistical office responsible for publishing European statistics and quality indicators) seems to be clear. While house prices are rising in most European countries, a far more pronounced situation is that of rental contracts. In terms of percentage ratios, the latter seem to have increased exponentially. Especially in the peninsula most affected initially by the Covid-19 phenomenon. We therefore enter to analyze Italy in the European context. Peninsula house prices tend to be below the European average. In fact, if in many member countries there were + 4.3% and 4.7%, in Italy it was -0.2% (compared to the same period of last year).
If we broaden the reference time frame (thus taking into consideration the period from 2007 onwards), the greatest European growth has affected the following countries:
• Austria (+ 88.4%)
• Luxembourg (+ 84.8%)
• Sweden (+ 80.6%)
Italy, on the other hand, already in the previous period, returned to the down countries, together with Greece (-35.6%), Romania (-26,%) and Ireland (-16.9%). A collapse obviously due to various reasons, first of all the world economic crisis.
But if so far we have focused on the sales market, now we will get to the heart of our section. The rental market, in fact, records a diametrically opposite situation.
European growth has always been constant, despite the most critical period for everyone, which has a precise year: 2008. What intrigues us is precisely the trend of the lease curve. Significantly higher than that of the houses for sale.
Still comparing the same current period, compared to the historical one of the previous years, it is inevitable to note that the rents have increased in 26 EU states. Among these, the most emblematic are mentioned:
Lithuania (+ 101%),
Czech Republic (+ 79.3%)
Hungary (+ 70.8%)
It's Italy ? This country too confirms the upward trend, but unfortunately too weak to speak of a real recovery. An average that is too distant from the European one, which, however, must also be analyzed in the historical context we are experiencing.
In general, therefore, it seems that rents are the most popular in Europe but ... how will it all evolve? To answer this question, just keep following our Blog!
