New data from Eurostat show that house prices in Austria went up by a whopping 85.5% between 2007, and the first quarter of 2019. This figure places Austria first, followed by Luxembourg at 80.6% and Sweden at 80.3%. The EU average stood at 19%.
Over the same period, there were increases in house prices in 22 EU Member States and decreases in 6, Eurostat said. The largest decreases were observed in Greece (-40.0%) , Romania (-27.2)% and Ireland (-16.7%).
For rents, the pattern was different with increases in all Member States, except Greece (-17.5%) and Cyprus (-0.3%). Rental price increases in Austria did not qualify for the top 3, which was topped by Lithuania at 101.1%, Czechia at 78.6%, and Hungary at 67.8%. The EU average stood at 21%.
House prices and rents in the EU have followed very different paths since the financial crisis. While rents increased steadily throughout the period up to the third quarter of 2019, house prices have fluctuated significantly.
After an initial sharp decline following the financial crisis, house prices remained more or less stable between 2009 and 2014. Then there was a rapid rise in early 2015, since when house prices have increased at a much faster pace than rents.
Looking ahead, real estate is set to remain an attractive investment asset in 2020, despite strong political and economic headwinds, according to the latest Emerging Trends in Real Estate Europe 2020 report, published annually by the Urban Land Institute (ULI) and PwC.
In terms of sectors, logistics once again tops the rankings for investment and development prospects with several residential-led sectors also dominating the top ten.
Many residential related sub-sectors, such as retirement or assisted living, co-living, student housing, affordable housing and rented residential properties are operationally more complex but are seen as being securely underpinned by strong demographic demand.
(Source: Emerging Trends in Real Estate Europe 2020)
Paris tops the list as the overall favourite for prospects in 2020, with investors anticipating knock-on benefits from Brexit, the 2024 Olympic Games and especially the Grand Paris project. Berlin and Frankfurt are also in the top three.
Despite ongoing Brexit uncertainty, London ranks fourth on the list this year, with a third of respondents rating the UK capital’s prospects as ‘good’ or ‘very good’ and a further third rating them as fair.
The report is based on the opinions of over 900 real estate professionals across Europe, including investors, developers, lenders, and advisors.