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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South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
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The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
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Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Kremlin spokesman Dmitry Peskov said Thursday that Ukraine “will have to understand and accept” the post-war realities, as Moscow signals openness to a third round of peace negotiations with Kyiv.
Israel has confirmed it carried out airstrikes on Iran’s only operational nuclear power plant in Bushehr, marking a significant escalation in the ongoing conflict.
South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
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