real estate
Nuremberg (end)
The AVIV Housing Market Report, an analysis of the property markets in 7 selected European countries, shows:
- Year-on-year comparison: Real estate prices are rising in 5 countries – Germany with the strongest decline (-6.2 percent), Spain with the most significant increase (+7.2 percent)
- In Germany, the number of loans granted has halved within a year, in southern Europe it has remained constant due to low prices
- By capping construction interest: In France (+0.4 percent), purchase prices have hardly changed in a year-on-year comparison
- Comparison of the capitals: Paris (10,072 euros) almost twice as expensive as Berlin (5,136 euros)
Across Europe, interest rates on building loans have risen rapidly over the past year and a half. However, the effects on the real estate markets differ significantly. In 5 out of 7 countries surveyed, the average prices for real estate have increased despite poorer financing conditions. The big exception is Germany, where prices fell by 6.2 percent – the largest drop of any country. However, the market has stabilized somewhat in recent months and the downward trend has been interrupted. This is the result of the current AVIV Housing Market Report for the second quarter of 2023. It analyzes the development of purchase prices on the real estate markets in Germany, France, Belgium, Luxembourg, Italy, Spain and Portugal. The report is produced in cooperation with the real estate portals meilleurs agents and Immoweb, which, like immowelt, are part of the AVIV Group.
Number of loans halved in Germany, stable in southern Europe
The strongest increases can be observed in the southern European countries. In Spain, the average price increased by 7.2 percent. In Portugal the plus is 6.4 percent and in Italy 2.0 percent. All countries have in common that the price level is well below that of Central European countries. For comparison: In Germany, a square meter of residential property currently costs 3,156 euros, in Spain and Italy it even costs less than 2,000 euros on average.
Although incomes are lower in southern Europe, people are still more likely to be able to afford to own their own home due to lower prices. Because the interest rates, which are also high, have less of an impact on the monthly burden with lower loan amounts. This is also reflected in the number of loans granted: while in Germany, according to data from the European Central Bank, the number of loans granted to private households fell by 50 percent within a year, it remained stable in southern European countries or even increased slightly. In addition, foreign investors are increasingly discovering holiday destinations for themselves. In addition, economic growth in Germany has declined in recent quarters, in contrast to most of the other countries surveyed. The effects of rising energy costs are particularly noticeable in Germany, which is also reflected in the lower purchasing power of Germans.
France: Capping interest rates has stopped the downward trend for the time being
The reason why real estate prices have not collapsed in France is different from that in southern Europe. Because the price level is similar to that in Germany. With an increase of 0.4 percent, the neighboring country to the west is now even slightly ahead of the Federal Republic with 3,180 euros per square meter. The main reason for the different development is the lower interest rate level. Because the upper limit for interest on building loans in France is set by the French central bank. This is a maximum of one-third higher than the average effective interest rate applied by credit institutions for all real estate loans of the same type during the previous quarter. As a result, the rapid rise in interest rates that has occurred in other countries since 2022 has been dampened. However, as a result of the continuous increases, the French interest rate level is gradually aligning itself with that of other countries where interest rates have recently calmed down. The financial burden for buyers in France is therefore increasing, which is also reflected in the price development. Although the purchase prices are slightly higher compared to the same month of the previous year, a decline can already be seen in the past half year.
Paris is more expensive than Munich and almost twice as expensive as Berlin
A look at the largest cities in Germany, France and Belgium shows that Paris is still by far the most expensive place. With average square meter prices of 10,072 euros, the French capital is even well ahead of Munich, which is by far the most expensive German city. In the Bavarian state capital, buyers currently have to calculate with prices of 8,692 euros per square meter. There is also a big gap to the German capital: at 5,136 euros per square meter, Berlin is almost half as expensive as Paris and is roughly on a par with Lyon (5,098 euros). The lowest purchase prices can be found in the major Belgian cities. In the capital, Brussels (3,283 euros), home ownership is more expensive than in the largest city, Antwerp (2,628 euros). But no Belgian city comes close to the price level of the large neighboring countries.
The full AVIV Housing Market Report Q2 2023 is available for download in English here.
You can find this and other press releases from immowelt.de in our press area at presse.immowelt.de.
About AVIV Housing Market Report:
The AVIV Housing Market Report is published every quarter and analyzes developments on the European real estate markets. It is created in cooperation with the real estate portals meilleurs agents from France and Immoweb from Belgium, which, like immowelt, are part of the AVIV Group. The AVIV Housing Market Report currently focuses on the countries Germany, France and Belgium as well as macroeconomic comparison data from the neighboring countries Italy, Spain, Portugal and Luxembourg. The inclusion of the United Kingdom and the Netherlands is planned for future evaluations. The long-term goal is to produce a comprehensive European market report that maps the largest European economies.
About immowelt.de:
immowelt is part of the AVIV Group, one of the largest digital real estate tech companies in the world.
The immowelt mission is to digitize all steps of the real estate transaction in the future in order to make it as uncomplicated and simple as possible for everyone involved. The basis for this is provided by the wide-ranging immowelt portals, which are among the leading real estate platforms in Germany and Austria and are already successfully bringing together owners, real estate professionals and those looking for something. With data-supported services, immowelt supports the uncomplicated search for a rental apartment, the effective marketing of a property and tailor-made financing for your own four walls. Thanks to decades of experience and extensive real estate know-how, immowelt creates the perfect sense of achievement for tenants and landlords, real estate professionals, property owners and buyers.
In addition to immowelt, other leading real estate online marketplaces in France, Belgium and Israel belong to the AVIV Group, which is part of Axel Springer SE.
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Original content from: immowelt, transmitted by news aktuell
2023-08-09 07:50:47
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