REAL ESTATE: INCREASING HOUSE COSTS IN EUROPE
The real estate market across Europe is on fire, with millions of people in the Old Continent unable to cover the increased cost of housing, according to a post by moneyreview.gr with information from Bloomberg.After all, real estate is one of the few sectors of the economy that emerged completely unscathed from the pandemic crisis, continuing the upward trend throughout the last few months, the same publication notes. As a result, there is a widening gap across Europe between homeowners and everyone else who is called upon to put their hand deep in their pocket. Characteristic was what happened last week in Berlin, where a referendum called on the local government to “nationalize” 240,000 apartments, with the aim of controlling rents and tackling the crisis.
20-year record In 2020, a year in which the eurozone economy hit a record recession, all 27 EU member states saw property prices rise at the fastest pace in two decades. It is indicative that increases in Portugal, Germany, Australia, Poland, Croatia, Estonia, Lithuania and Belgium ranged from 8% to 10%. From 2010 until today, property prices in Eurozone countries have jumped by at least 30%, while rental prices have risen by 15% over the same period, adding extra burdens to many households. It is no coincidence that the International Monetary Fund recently warned Europe of a “worrying growing inequality”. At present, the rate of home ownership in the European Union stands at 70%, which means that the remaining 30% are forced to live in rented accommodation. In Greece, the percentage of home ownership is 75%. And while in Romania it jumps to 96%, ie almost everyone has their own home, in Germany it sinks to only 51%.
At the same time, in countries with a high rate of home ownership, another phenomenon is observed. That of young people, who stay with their parents for a long time after coming of age. Greece and Croatia have the highest rates in Europe, with more than 70% of young people aged 18 to 34 not leaving their family home. Equally high percentages are recorded in Italy, Spain, Portugal, Ireland, Slovakia etc.