The rise in property prices in many countries is due to a number of circumstances. People who have become accustomed to working from home more often during a pandemic need more space than before, and governments provide them with the right conditions. “The ingredient cocktail sends home prices to unprecedented levels around the world,” wrote Bloomberg economist Niraj Shah in his study.
“Record low interest rates, unique fiscal stimulus, deposit-ready lockdown savings, limited housing stock and expectations of a significant recovery in the global economy are all contributing to this,” he explained.
The Nordic countries in particular are facing a sharp rise in prices in Europe. Server Politico He said that in Sweden houses are becoming much more expensive than apartments. Valueguard, which monitors market developments, reports that they have risen by 23 percent in the last twelve months, and by almost 27 percent in and around Malmǒ.
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“I have been working as a real estate agent for seventeen years and I have never seen the rapid price growth we have experienced in the last year. It’s extreme, “said Pär Gunnarsson, who works in Stockholm. “There is a lot of interest in every house that comes on the market,” he said. Properties are often sold before they make an official offer.
Experts note that buying a house in Sweden is now difficult due to lack of building land. In addition to the global rise in price of construction materials, other problems also mention low competition in the local construction sector.
The situation in Britain is not much better. Demand is driven by nearly a year of government tax breaks for property buyers up to £ 500,000, but, like elsewhere, coronavirus savings in wealthier households. “The real estate market is currently on fire,” he said last week, according to the newspaper The Guardian Chief Economist of the British Central Bank Andy Haldane. He warned that dramatic price increases are likely to worsen the gap between hedged and younger generations.
According to official data, the acquisition value of real estate is rising the fastest in more than a decade. Buyers are competing in the country mainly in offers for more spacious houses. There are now far fewer multi-room housing units on the market than before. The struggle for vacant real estate leads to bizarre situations.
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Those interested are bidding on houses they haven’t even seen. In April, dozens of potential bidders spent the night in front of a real estate agent’s house in an effort to acquire one of thirteen houses for sale in Aberdare, Welsh.
“We originally planned to go to the queue at midnight, but as interest grew, it moved to an earlier time,” he said at the time. BBC Angharad Hamilton-Shaw, who took first place in the line at three in the afternoon. “People still came in the early morning hours and then left again when they found out what houses those in line were interested in. It was heartbreaking, “he added.
At the moment, experts generally do not expect house prices to go down in the coming months. However, it will depend on many of the factors mentioned, in particular the behavior of governments and central banks and the speed of construction.
| Real estate bubble risk ranking |
| Price / rent ratio Price / income ratio Real price growth (%) |
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1. New Zealand 211.1 166.6 13.2 2. Canada 204.2 153.2 8.7 3. Sweden 178.1 150.4 9.8 4. Norway 179.2 140.9 8.6 5. Britain 152.0 131.4 7.2 6. Denmark 147.0 135.0 9.8 7. USA 122,9 94,5 10,7 8. Belgium 153.0 138.7 5.1 9. Austria 118.9 143.8 6.1 10. France 140.2 126.0 4.9 |
Source: Bloomberg
Note: Values above 100 in the first two columns indicate the current ratio of prices to rent or income above the long-term average.
These are annual growth, data for the first quarter of this year or the last available quarter.
Real estate prices in Prague soared at a record pace:
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Real estate prices have skyrocketed in recent years. The prices of flats in Prague rose the most. • VIDEO Mall.tv
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