The housing market In the Netherlands, Sweden, Luxembourg, Poland, Austria, the Czech Republic and Germany, house prices have increased by at least 7.5%.
Home prices have increased in almost all European countries in 2020 compared to the previous year. This is evident from the figures published by real estate appraiser Calcaxa on Thursday. The increase was the highest in Sweden, where home values increased by 10.1 percent on average. The Netherlands comes second with 10.0%. Home prices have also risen sharply, by at least 7.5% in Luxembourg, Poland, Austria, the Czech Republic and Germany.
France and the United Kingdom also saw house price growth in 2020, albeit less strongly (4.9 and 4.3 per cent respectively). In the past year, prices have decreased slightly in Spain, Cyprus and Estonia. Across Europe, Calcasa is seeing an average increase of 5 percent.
The Coronavirus crisis does not appear to have had a direct effect on home price growth yet, the home appraiser wrote. However, it is possible that the epidemic and the accompanying economic crisis indirectly affect the housing market, although this varies from country to country. As for the Netherlands, Calcaxa believes that the government subsidy packages contributed to the continued price hike in the housing market last year. Additionally, housing shortages and low mortgage interest rates play a role.
With large price increases in European countries, the trend that began years ago continues. From 2015 to 2019, housing prices in Europe increased by 21.75%. In the Netherlands, this percentage is even higher: 35.58 percent. Home prices have also risen sharply for years in other countries where there has been a relatively high increase last year. Therefore, Calcaxa concludes that the increase in 2020 is “a continuation of what was already going on”.