Dublin, March 27, 2024 (GLOBE NEWSWIRE) -- The "Europe Residential Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029" report has been added to ResearchAndMarkets.com's offering.
The Europe Residential Real Estate Market size is estimated at USD 1.95 trillion in 2024, and is expected to reach USD 2.43 trillion by 2029, growing at a CAGR of 4.5% during the forecast period (2024-2029).
Demand for affordable residential real estate is increasing thus driving the market. Furthermore, there is a significant price rise in the market hence investors are showing interest in investing in the market.
Key Highlights
- Like other real estate assets, the European residential market has gradually shifted due to the health crisis. The two main trends affecting real estate over the past several years are the demand for space, which has led to larger homes and flats, and the return to nature, which has resulted in a move from the city to the countryside. The multifamily real estate model, which is currently booming in the Italian market, is a new trend that is also starting to emerge.
- From a pricing point of view, residential markets are experiencing slight growth in most cases despite the general uncertainty surrounding the economy. Many countries have reported unprecedented demand for new housing shortly after the strictest lockdowns. Moreover, this trend is expected to continue throughout 2022, which may support further price growth.
- Following a 5% annual growth in Q1 2022, the number of outstanding residential mortgages grew by 4.2% in Q2 2022 when compared to the same period of the prior year. The most recent data on gross home lending according to data, the total value has dropped by -1% annually (compared to Q2 2021), ending a 5-quarter streak of steady year-over-year development. Gross lending as a whole reached about EUR 395 billion (approx USD 423.56 billion), the greatest level since Q2 2021.
- The recent geopolitical developments in Europe impacted the activity, which resumed after being disrupted by the epidemic for several years, and the inflation rate reached its highest level in several years (+5.3% over the last year). The residential real estate market is also significantly impacted. In Q4 2021, mortgage rates in the Eurozone remained steady at 1.31%, historically low. In 12 nations, the transactions number is increasing by an average of 17%, while residential rental values have increased by 1.8% in the past year.
Growth in transaction prices of new dwellings supporting the market
- House prices have increased by 18.2% in Q2 2022 compared to the same quarter the previous year. As a result, the Netherlands continues to be among the top five EU nations with the most significant growth in housing prices. New data from Statistics Netherlands (CBS), the Netherlands Cadastre, Land Registry and Mapping Agency (Kadaster), and Eurostat support this. The transaction prices for both new and used owner-occupied homes are present in the house price index. In Q2 2022, the average increase in home prices across the EU was close to 10%. After Estonia (+27%), Czechia (+23%), Hungary (+23%), and Lithuania (+22%), the Netherlands experienced the most significant increase in home prices.
- The average transaction price for a newly constructed home increased by 16.9% in Q2 2022 compared to the same quarter year before. Additionally, it was the first time that the median selling price for newly constructed homes went beyond EUR 500,000 (USD 531,500). Existing owner-occupied homes typically cost 18.4% more than new ones. Compared to the first quarter of 2022, when it reached a record 20.3%, this growth was less significant.
- More than 47,000 owner-occupied homes were sold in Q2 2022. It represents a 10.2% decline from the same quarter last year but a 7.9% increase from Q1 2022. The number of new-build homes sold decreased by 13.8% yearly to about 8,000 transactions.
Rental segment showing significant growth in the market
- Rental prices are rising due to a combination of factors, including a lack of available space, high land, and building costs, and the desire of highly compensated workers to live centrally in desirable areas.
A selection of companies mentioned in this report includes, but is not limited to:
- Elm Group
- Places for People Group Limited
- LEG Immobilien AG
- Consus Real Estate AG
- CPI Property Group
- Aroundtown Property Holdings
- Segro
- Covivio
- Unibail-Rodamco
- Gecina*
For more information about this report visit https://www.researchandmarkets.com/r/wfbijn
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