In the spring economic forecasts, the community executive points out that the European Union (EU) real estate markets will moderate in 2023, with several regional variations, but they expect “real estate prices to increase again soon”.

Brussels recalls that in the fourth quarter of 2023, housing prices in the eurozone were 1.2% below the level of the previous year, while prices in the EU were 0.2% above.

House price changes in 2023 averaged -1.1% in the euro area and -0.3% in the EU.

“The most significant declines were recorded in Germany, Sweden, Luxembourg and Finland. On the contrary, Croatia, Bulgaria, Lithuania, Poland, Portugal, and Slovenia registered growth rates above 6%”, he lists.

The community executive highlights that both housing transactions and new construction licenses were, in the EU, close to the lowest levels of the last decade, even in countries that registered increases in housing prices.

“Building permits appear to have recently started to recover. Strict credit standards and low demand are expected to continue to weigh on real estate transactions and construction for a few more quarters”.