Photo: PixabayAcross Europe, real estate prices have fallen dramatically in recent months, analysts note.
After months of predictions about when and where the housing market might fall first, the contraction hit Sweden the hardest. Property values are down 15% from their peak, and economists worry the "dramatic shift" could trigger the worst recession among the 27 EU member states. Most Swedish mortgages are adjustable, which makes them sensitive to interest rate increases, seebiz.eu reports.
The average asking price of homes being put on the UK market fell 2.3% last month, the fastest rate in 14 years, while rents soared.
Half of France's 35 largest cities saw property prices fall by as much as 3% in the last three months, data show.
Spain recently froze interest rates and extended loan maturities to protect low-income households from mortgage shock.
The fall in real estate prices has also affected Greece, where houses are still significantly more affordable than elsewhere in the Mediterranean. The Greek government plans to provide extremely low mortgage rates for first-time buyers.
The cooling of the market will also affect Croatia. The difference between the requested and realized real estate prices is increasing, and currently reaches about 15 percent, which means that the owners' demands are not always realistic, especially when it comes to old buildings, it was pointed out last week at the 34th Real Estate Business Forum. The forum was organized by the Real Estate Business Association of the Croatian Chamber of Commerce (HGK), and as the president of that association, Dubravko Ranilović, said, it is not yet possible to say with certainty what the next year will look like, but he believes that there will certainly be a change in trends.
"There will be a certain slowdown in the real estate market, prices will not be able to rise indefinitely in this way," said Ranilović.
The economy of the EU, including Germany, is slowing down due to the crisis and heading towards recession, interest rates are rising due to inflation, and considering that more than a third of real estate buyers in Croatia are foreigners, this will also affect the Croatian market in the coming year, he estimated. .
Source: seebiz.eu
