European property prices set to rise in ‘05 |
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Published
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Fri, 04 Mar 2005 01:00
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European property market, which made the most out of 2004, is now set to reap the benefits of the coming year as property prices are set to continue to rise.
The 155-page report published by Royal Institute of Chartered Surveyors (RICS) in its European Housing Review, noted that property markets throughout Europe was improving, and countries like France, Spain and Ireland clocking more than 10 per cent increase in property values, while Belgium, Italy, Sweden, Denmark, Finland and Portugal witnessing anywhere between five and eight per cent increase in property prices.
| RICS said the only European country that faltered in the previous year was UK, but strong growth in Q1 helped the country regain its property prices as against the previous year.
“The UK alone saw its housing market decline significantly in the latter part of the year after a series of interest rate rises,” RICS said.
Apart from UK, Austria and Hungary were the only other two countries that fared dismal on the property scene in 2004, after RICS analyzed 17 other European countries.
The report, however, stated that quality housing and adequate legal property infrastructure was still a major concern in many of the European nations.
On future outlook, the report said the price will continue to grow throughout 2005, but conditions may worsen as the year end will approach.
“Low interest rates are likely to continue to stimulate housing demand across Europe in the first half of 2005,” said Michael Ball, author of the report.
“Yet changes may occur towards the end of the year as pressures for increases in Euro zone interest rates grow and new housing supply continues to come on stream in EU markets," Ball added.
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