The European real estate market is showing signs of recovery, with property prices increasing in most countries during the second quarter of 2024, according to the latest AVIV Housing Market Report.
Market trends across Europe
The report, which analyzes property price developments in seven European countries, reveals a general upward trend in housing prices. Key findings include:
- Germany: Moderate growth with a 0.6% increase, pushing the average price per square meter to €3,009.
- France: A turnaround with a 0.9% increase, following a 0.4% decline in the previous quarter.
- Iberian Peninsula: The most significant price jumps, with both Spain and Portugal seeing 2.8% increases.
- Belgium: A steady rise of 1.3% in the second quarter.
- Italy: The only country showing a decline, with prices dropping 1.6%.
- Luxembourg: Prices remained stable, showing no change in the second quarter.
Factors influencing the market recovery
Several factors contribute to the stabilization and growth of property markets across Europe:
- Declining inflation in the Eurozone
- Improving financing conditions for property purchases
- Increased affordability of homeownership
Affordability improvements
The report highlights that affordability of homeownership has improved in several countries:
- In Germany, a two-person household with average incomes can now afford 94 square meters, up from a low of 83 square meters in autumn 2023.
- France saw a dramatic shift, with affordability increasing from 79 square meters at the peak of the interest rate crisis to the current 84 square meters.
While these figures have not yet reached the peak levels seen in January 2022, they represent a significant recovery from recent lows.
The AVIV Housing Market Report, produced in collaboration with property portals Meilleurs Agents and Immoweb (part of the AVIV Group along with Immowelt), provides valuable insights into the evolving European real estate landscape. As property markets continue to recover, potential buyers and investors will be closely watching these trends for future opportunities.
