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Yahoo
6 days ago
- Business
- Yahoo
European property market: Where have housing costs soared the most?
Higher building costs and mortgage rates, limited supply and the rise in house purchases as an investment created eye-watering price levels in certain countries across the EU. Hungary saw the biggest jump in prices, with dwellings costing three times as much as they did in 2015. Nowadays, an apartment in the country's capital, Budapest, is priced in the range, on average, from €250,000 to €1.5 million. Hungary is followed by Iceland, where prices are approximately 2.5 times what they were in 2015. In the capital region, in Reykjavík and six municipalities around it, dwellings are the most costly, with average purchase prices of around €558,000. According to the Bank of Iceland, as supply has grown and demand is softening, house prices are increasing at a slower pace, yet the year-on-year house price inflation was still 8% in March. Elsewhere in Europe, there was also a considerable rise in house prices over the last 9 years. Lithuania, Portugal, the Czech Republic, Bulgaria, Estonia and Poland all witnessed prices more than double. Meanwhile, at the bottom of the list, there is Finland, where property prices are not substantially higher than what they were almost ten years ago. However, there are big differences between the cost of dwellings in the rural areas and in Helsinki, for instance. According to Global Property Guide's recent report, the downturn in the Finnish property market, which started in 2021 and saw prices collapse by 14% annually, has likely bottomed out. They expect the ongoing economic recovery to support a gradual increase in house prices, mainly newly built ones, as the second-hand dwellings' price is expected to increase only marginally by 1-3% this year. Second-hand flats have an average price of €4,612 per square metre, driving the cost of a 75 sqm one to €345,900, but in Helsinki, this could be more like €4-500,000. Eurostat has no data for Greek house prices, but according to the Bank of Greece's Residential Property Index, prices are just above their 2008 level in urban areas. Outside of the EU, in Turkey, prices are 17 times what they were in 2015. In Istanbul, a two–bedroom apartment tends to cost around €120,000 nowadays. (It may seem like a good deal compared to Western European prices, but consumer prices are almost up 38% year-on-year and average gross salaries are slightly above €600 per month.) Renting a house or apartment also became a lot more expensive across Europe, even though they increased at a slower pace than prices. According to Eurostat's latest available data, rents increased by 26.7% in the EU, between 2010 and Q4 2024. However, there were countries with rental prices increasing far beyond the average. Estonia saw the biggest jump in rental prices, which more than tripled(+212%) compared to their level in 2010), in Lithuania, renting became 175% more expensive and in Iceland, the prices grew by 120%. In Hungary, rental prices are more than double (+114%) what they were in 2010. Greece is at the bottom of this list, where rental prices are 13% cheaper in the same period. Meanwhile, in Turkey, rental prices are nearly 8.8 times what they were a decade ago, according to the latest OECD data. Housing costs, including paying for utilities, also rose substantially in many EU member states. Between 2015 and March 2025, people in Estonia saw the biggest increase in their housing costs across the bloc. They paid slightly more than double what they did 10 years before. Estonia was followed by Poland and the Czech Republic, each recording housing costs around 180% of what they were in 2015. In the EU, on average, these prices increased by more than 40% over the same period. Within the bloc, the smallest rise was seen in Spain, just above 20%. However, Albania, which is in line to join the EU, saw an even smaller increase. When housing costs are compared to the EU average, Ireland is topping the list of the most expensive country, according to the latest data (2023) from Eurostat. In France and Germany, this cost was a bit more, in Italy and Spain, a bit less than the average in the EU. People in Malta and Hungary paid only two-thirds of the EU average, and Bulgarians were bottom of this list with slightly less than 40% of that. High rental and house prices are partially to blame for many young Europeans not being able to leave their parental home for years after they start working. According to Eurostat, young Europeans leave their parents' home on average at the age of 26.3. This varies significantly between EU countries, from 21.4 years in Finland to 31.8 years in Croatia. In 2023, people in Cyprus invested the equivalent of 8.6% of the country's GDP in property, according to Eurostat. In Italy, this rate was 7%, slightly more than in Germany (6.9%) and France (6.4%). The lowest rate was recorded in Poland (2.2% of the GDP) and Greece (2.3%). The average investment in housing in the EU sat at 5.8% of GDP in 2023, roughly about one trillion euros. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
15-05-2025
- Business
- Euronews
European property market: Where have housing costs soared the most?
Higher building costs and mortgage rates, limited supply and the rise in house purchases as an investment created eye-watering price levels in certain countries across the EU. Hungary saw the biggest jump in prices, with dwellings costing three times as much as they did in 2015. Nowadays, an apartment in the country's capital, Budapest, is priced in the range, on average, from €250,000 to €1.5 million. Hungary is followed by Iceland, where prices are approximately 2.5 times what they were in 2015. In the capital region, in Reykjavík and six municipalities around it, dwellings are the most costly, with average purchase prices of around €558,000. According to the Bank of Iceland, as supply has grown and demand is softening, house prices are increasing at a slower pace, yet the year-on-year house price inflation was still 8% in March. Elsewhere in Europe, there was also a considerable rise in house prices over the last 9 years. Lithuania, Portugal, the Czech Republic, Bulgaria, Estonia and Poland all witnessed prices more than double. Meanwhile, at the bottom of the list, there is Finland, where property prices are not substantially higher than what they were almost ten years ago. However, there are big differences between the cost of dwellings in the rural areas and in Helsinki, for instance. According to Global Property Guide's recent report, the downturn in the Finnish property market, which started in 2021 and saw prices collapse by 14% annually, has likely bottomed out. They expect the ongoing economic recovery to support a gradual increase in house prices, mainly newly built ones, as the second-hand dwellings' price is expected to increase only marginally by 1-3% this year. Second-hand flats have an average price of €4,612 per square metre, driving the cost of a 75 sqm one to €345,900, but in Helsinki, this could be more like €4-500,000. Eurostat has no data for Greek house prices, but according to the Bank of Greece's Residential Property Index, prices are just above their 2008 level in urban areas. Outside of the EU, in Turkey, prices are 17 times what they were in 2015. In Istanbul, a two–bedroom apartment tends to cost around €120,000 nowadays. (It may seem like a good deal compared to Western European prices, but consumer prices are almost up 38% year-on-year and average gross salaries are slightly above €600 per month.) Renting a house or apartment also became a lot more expensive across Europe, even though they increased at a slower pace than prices. According to Eurostat's latest available data, rents increased by 26.7% in the EU, between 2010 and Q4 2024. However, there were countries with rental prices increasing far beyond the average. Estonia saw the biggest jump in rental prices, which more than tripled(+212%) compared to their level in 2010), in Lithuania, renting became 175% more expensive and in Iceland, the prices grew by 120%. In Hungary, rental prices are more than double (+114%) what they were in 2010. Greece is at the bottom of this list, where rental prices are 13% cheaper in the same period. Meanwhile, in Turkey, rental prices are nearly 8.8 times what they were a decade ago, according to the latest OECD data. Housing costs, including paying for utilities, also rose substantially in many EU member states. Between 2015 and March 2025, people in Estonia saw the biggest increase in their housing costs across the bloc. They paid slightly more than double what they did 10 years before. Estonia was followed by Poland and the Czech Republic, each recording housing costs around 180% of what they were in 2015. In the EU, on average, these prices increased by more than 40% over the same period. Within the bloc, the smallest rise was seen in Spain, just above 20%. However, Albania, which is in line to join the EU, saw an even smaller increase. When housing costs are compared to the EU average, Ireland is topping the list of the most expensive country, according to the latest data (2023) from Eurostat. In France and Germany, this cost was a bit more, in Italy and Spain, a bit less than the average in the EU. People in Malta and Hungary paid only two-thirds of the EU average, and Bulgarians were bottom of this list with slightly less than 40% of that. High rental and house prices are partially to blame for many young Europeans not being able to leave their parental home for years after they start working. According to Eurostat, young Europeans leave their parents' home on average at the age of 26.3. This varies significantly between EU countries, from 21.4 years in Finland to 31.8 years in Croatia. In 2023, people in Cyprus invested the equivalent of 8.6% of the country's GDP in property, according to Eurostat. In Italy, this rate was 7%, slightly more than in Germany (6.9%) and France (6.4%). The lowest rate was recorded in Poland (2.2% of the GDP) and Greece (2.3%). The average investment in housing in the EU sat at 5.8% of GDP in 2023, roughly about one trillion euros.
Zawya
13-03-2025
- Business
- Zawya
South Africa: National budget boosts infrastructure investment in key property areas
The national budget reflects increased infrastructure investment in key property growth hubs, despite concerns over the disappointing Vat hike, says Dr Andrew Golding, chief executive officer of the Pam Golding Property group: It was positive to note that the critical need for infrastructural improvements has been highlighted in today's National Budget, as investment in sound infrastructure with a focus on energy, clean water supply and effective sanitation, well-maintained roads and other transport facilities, as well as affordable and effective broadband connectivity, promotes economic growth, and fosters employment opportunities. It also ultimately attracts new businesses and both residential and commercial property development and helps foster thriving economic hubs. This is evidenced by the semigration trend, which continues to see home buyers relocate to municipalities with good infrastructure and sound management. Investment in owning one's own home is recognised as a key aspiration for people across all sectors of the market, with benefits including capital appreciation and potential rental income. According to Pam Golding's Residential Property Index, national house inflation continues to gather momentum, rising to +5.75 in January 2025, which is higher than the post-pandemic peak of +5.6% in May 2021. While the National Treasury was faced with a challenging balancing act in delivering the National Budget, the increase in Vat, albeit 0.5% in the short term – with a further 0.5% the following year (2026/27) - will impact already cash-strapped consumers, particularly those who can ill afford it – this despite the increase in zero-rated foods to cater for the poor. With citizens about to be hit with hefty electricity hikes – which will attract increased Vat, this simply increases financial pressures on consumers who must also pay Vat on other municipal tariffs – all of which adds up to a sizeable share of their monthly income. From a property perspective, there are a number of Vat-inclusive services associated with the purchase of a home, for which buyers will need to allocate additional budget, which will impact particularly on first-time buyers seeking to gain a foothold on the first rung of the property ladder. The transfer duty threshold was last adjusted to R1m in 2020/21 which compares to the average purchase price paid by a first-time buyer of R1.24m. Obviously, it was difficult to adjust again with current pressure on the fiscus, but an adjustment is due particularly given the surge in inflation in the wake of the pandemic. Furthermore, purchasers of new-build units will also be affected, as Vat is incorporated in the purchase price of new developments when brought to market by developers. The fact that the fuel levy has not been increased is positive, however, South Africans across the board will be negatively impacted by the lack of inflationary adjustments for personal income tax bracket creep, and for medical tax credits. It is hoped that a clear focus on fiscal consolidation will bear fruit, with the stabilising of debt. As noted in the Budget speech, the key issue that needs to be addressed is the lack of economic growth. This requires macroeconomic stability – which this budget delivers even as it places pressure on households.
