23/01/2014
Toward a slow recovery of the European real estate market
P { margin-bottom: 0.08in; } Real estate values may begin to stabilise this year in the euro zone, although a recovery is still far off, particularly in Spain and the Netherlands, Standard & Poor’s estimates in its most recent quarterly bulletin on the European real estate market. Standard & Poor’s predicts more modest prices than last year in Spain in 2014 (-2%), and in Italy (-1%), price increases in Ireland (+3.5%) and Portugal (+0.5%), and no growth in the Netherlands (0%). More significant price evolutions are in the United Kingdom (+5%) and Germany (+4%), due to the better economic performance of these countries. In France, the economic downturn in the past five years has only very slightly imprved the availability ratio for the market. Standard & Poor’s predicts a price correlation in 2014 of -3%, followed by a stabilization (+2.0%) in 2015. A structural deficit in supply is expected to continue on the market to a certain extent, despite a gradual increase in interest rates.
