(Finance) – In Europe, the real estate market in 2023 has demonstrated remarkable resilience and adaptability, with variable trends between different countries due to different reactions to economic events and political interventions. Growing concerns about climate change have also impacted consumer behavior, legislation and the decisions of companies and investors, orienting the sector towards more sustainable choices. This is what emerges from the new edition of “Housing Insider: European Real Estate Insights”The RE/MAX Europe report which provides an overview of trends in the markets of Italy, Portugal, Spain, France, Germany, Austria, Belgium and Switzerland. Supported by accurate data and in-depth analysis, the report provides a comprehensive view of the complexities of the real estate sector in Europe, influenced by the global geopolitical context, and proposes an informed outlook for 2024.
Compared to other European countries, in 2023 the real estate market in Italy recorded a slight decrease in prices per square meter overall, with a decrease of 0.5% compared to the previous year, thus positioning our country among the nations, taken into consideration, with the lowest housing costs, which on average stand at around 1,684 euros per square meter. According to the RE/MAX Europe report, theIn Italy, apartments are confirmed as the most requested housing solution, with an average time on the market of 147 days, significantly lower than the 172 days of detached homes. Furthermore, during the year, variations in the time to market were minimal, reflecting a Italian real estate market more stable and predictable compared to countries like France, where variations from quarter to quarter have reached 70 days. The growing demand for apartments and their shorter time on the market are a sign of a prudential attitude of consumers, oriented towards more accessible real estate solutions in response to the economic scenario. A trend influenced by the monetary policies of the ECB and the more stringent conditions of access to credit of Italian banks that have pushed some potential buyers to postpone the purchase of the house.
More optimistic are the forecasts for 2024: although due to the high interest rates a return to the liveliness of the market observed in the past is not expected, a substantial stability of prices per square meter is expected, which could contribute to increasing the number of transactions. “Already in the first months of 2024, a different sentiment began to emerge compared to the end of 2023. The announcement of a possible reduction in rates, which then occurred in June, has, in fact, also led Italian banks to anticipate these reductions with more favorable conditions and specific promotions for certain types of properties, favoring green homes – comments Dario Castiglia, CEO & Founder of RE/MAX Italy –. This suggests that there will be tepid signs of recovery in the coming months.”
The rest of Europe also saw its lowest level of mortgage growth in a decade in 2023, as many potential buyers decided to postpone home purchases as renting became temporarily more affordable. The increase in demand for rental properties has led to an increase in prices, especially in large cities such as Paris, London and Berlin, which have reached record levels.
According to what emerges from the“Housing Insider: European Real Estate Insights” by RE/MAX Europe, the prospects for 2024 are positive, with a return to a more balanced market, where buyers could enjoy new opportunities, especially with the entry of private individuals who have postponed sales, favoring greater price negotiation. Already towards the end of 2023, a gradual stabilization of the European real estate market began to be seen, which remains of great interest to foreign investors from all over the world. “Bricks and mortar therefore continue to be considered a safe haven against inflation, thanks to the profitability supported by the increase in rental rates and the ability to revalue over time”, he adds Castile.
“2023 was a particularly challenging year, which offered significant opportunities – he says Michael Polzler, CEO of RE/MAX Europe –. In all 40 countries where we are present, over 250,000 clients have relied on our real estate consultants to manage their sales, recognizing the value of competent professionals who are well-prepared for market trends”.