A new splash of growth in housing prices in Europe

A surge in growth in property prices in Europe is expected in the current year 2021. It is due to an even greater increase in demand, primarily from foreigners - after the opening of the borders,  since they were able to freely visit European countries again.

2020 has shown an active rise in real estate prices in most countries of the world. Main reason for this rise in prices is the increase in demand for various options for residential real estate, including among foreign investors.

More and more buyers began to give preference to country houses, comfortable villas or spacious apartments with large balconies.

For example, in France the average price per square meter in 2020 increased by 6.7% and amounted to about 3.5 thousand euros.

What is the forecast for 2021?

Another spike in growth in property prices in Europe is expected in 2021. It is due to an even greater increase in demand, primarily from foreigners - after the opening of the borders, they were able to freely visit European countries again. In addition, the economy is gradually recovering, and the faster rates of economic development are shown in Europe.

The average price increase in 2021 in different European countries is expected to be as follows:

• by 5.3% - in Germany;
• by 5.2% - in the Netherlands;
• by 2.6% in Portugal.
• Approximately the same percentage of the increase in the value of housing is expected in France, Spain, Italy, etc.

Experts note that the rise in prices will not stop over the next three years. The main reason that affects this situation is that with the rapid increase in demand for housing, the number of proposals in many cases is simply not enough. Because of this, developers and owners are able to raise prices without losing potential buyers.

For example, in Germany, according to industry experts, the price of living space will be 15% higher compared to current prices. In Portugal - by 12%.

It is also worth noting that this trend shows the average results of the real estate market in Europe. At the same time, it is important to understand that in central regions, large metropolitan areas or coastal zones, the cost of residential real estate is growing faster than in other parts of the country. Prices for villas and country houses are also increasing rapidly compared to small apartments and new buildings.

This means that despite the new surge in price increases, it will still be possible to find great housing options in European countries - both in terms of location, area, and in terms of price.