The European Central Bank (ECB) expects house prices in the eurozone to keep rising, driven by strong demand and limited housing supply, despite a recent decline in real estate prices.
The European Central Bank (ECB) predicts that house prices in the eurozone will continue to rise following a recent recovery in the real estate market, as stated in a report released on Monday.
High construction costs and elevated house purchase prices are hindering the creation of additional housing supply. As a result, the upward trend in prices may persist, driven by strong demand and limited housing availability, the ECB noted.
The report highlights that, despite a recent decline, real estate prices in the eurozone remain elevated. "This has worsened housing affordability, even as monetary policy has become less restrictive," the report stated.
ECB research shows that property prices in the region have dropped by 3% over the past 18 months, a smaller decline compared to the 5% drop during the 2008 global financial crisis and the eurozone debt crisis.
Before 2022, the region's property market had experienced a multi-year boom, with central banks frequently warning about overvaluation in major cities.
A combination of soaring inflation following the COVID-19 pandemic, rising energy costs, increasing interest rates, and tighter financing conditions led to a decrease in house prices starting in 2022. However, by the third quarter of 2024, real estate prices in the eurozone had rebounded, surpassing their 2022 levels.
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Start your day informed with AnewZ Morning Brief: here are the top news stories for April 16th, covering the latest developments you need to know.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
Russian Foreign Minister Sergey Lavrov extended Moscow’s support for the ongoing indirect nuclear talks between the United States and Iran, offering to mediate or assist in any way that would be beneficial to Tehran and acceptable to Washington.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
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