EU Concern Over Rapid House Price Rises in Spain

21 March 2018 – Eje Prime

Spain is now one of the countries in the European Union (EU) where house prices are growing the fastest. The Spanish residential market ended 2017 with an average growth in prices of 7.2%, exceeding the YoY variation rates in most of the continent’s major economic powers such as Germany, France and the United Kingdom, according to data from Eurostat.

This data, together with the bubble that the country suffered during the final years of the last decade and the beginning of this one, have raised concerns beyond Spain’s borders. There, according to reports by Cinco Días, observers see that the pattern of the previous bullish phase is being repeated.

During the third quarter of the year, for example, house prices across the EU markets as a whole increased by 4.1% in nominal terms. Out of all the countries in the Union, five stood out for their double-digit growth, namely: the Czech Republic (12.3%), Ireland (12.0%), Hungary (10.2%), the Netherlands (10.2%) and Portugal (10.4%).

Established economies such as the German, French and British saw their house prices rise by around 3%. Specifically, the price of housing in France grew by 3.1% last year; in the United Kingdom, the increase amounted to 2.8%; and in Germany, 1.8%. Meanwhile, Italy continued to see price decreases in its residential sector, with a reduction of 2% YoY last year. By city, London, Amsterdam, Madrid and Dublin are going to be the metropolises where prices grow by the most in 2018, with double-digit rises forecast, according to a study by Dbrs.

Original story: Eje Prime

Translation: Carmel Drake

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