Housing prices in Europe are rising at the fastest pace since 2006, S&P Global said, as the residential home market recovers from the pandemic faster than other sectors of the economy. The report also said that while inflation may have peaked.As supply of new housing is not able to keep pace with structural demand, S&P expects the rise in housing costs to continue over the next four years. One major reason for the rise is that people have accumulated savings during the pandemic due to lockdowns and restrictions on going out. With more savings put aside, households have been able to put down larger deposits.
Also, lower borrowing costs have contributed to rising house prices, as central banks loosen monetary policy as a response to the pandemic. Interest rates fell to a new record low of 1.32% for new housing loans in the eurozone in August.
While there is growing demand for property, there are also more acute supply constraints, after construction activity was put on hold at the onset of the pandemic. People are looking for different types of property since the pandemic, most wanting more outdoor space after been confined for so long in their homes.
If you are thinking of buying in the near future, maybe now is a good time as prices are still stable. Contact us and let us help you find your dream property, whether you are looking for a holiday home or permanent living.
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