Consolidation In House Price in EU In July

Brexit raised the risk of loss of jobs and houses in the UK, forcing many buyers out of the property market during the changeover phase. However, the report on risk factors during the progress stage finds at least 1 million British ex-pats are standing by to know their status in the pre/post-Brexit stage.

It is one reason for easing back UK-EU real estate markets. In addition, the property markets across the continent are consolidating where many new construction projects and new schemes initiated to fulfil the housing shortage led to the excess supply of houses and resulted in a consolidation of prices in some EU cities such as Switzerland, Sweden, and Norway (as per the Scope study). 

The cost remained unchanged in most EU markets after 2017, though growth was seen in specific markets. However, the analysis claims there has been over-the-top development in a part of the developing urban areas of Europe and restricted growth in others. 

The trends could be seen in global real estate, which led the local governments to impose strict regulations to confine the escalation of housing prices.

Some common trends noticed in the global markets were -

In some countries, e.g. the UK (London) and the US– affordability has been the main issue where house prices are rising twice as wages. 

• Simultaneously, a limited demand constrained developers who curtailed construction projects, as numerous new ventures were slowed down, even in locales where the market was solid during the 2008 monetary emergency.

• The reports by UK developers find just 12 per cent of the evaluated or pre-arranged development work has been started over the most recent three months in London to June (according to NHBC). 

• Probably the biggest projects started in the UK from 2010 to 2015 are confronting various issues, including the Brexit chaos and decreased interest from overseas purchasers because of an increase in taxes by the administration for homes worth more than 1 million pounds. 

• According to NHBC, in the first six months of the year, the costs dropped by 1.9 per cent, and it assumed that the housebuilders' benefits might fall by 30 per cent because of the increase in property taxes and diminished confidence of the purchasers during the Brexit stage. 

There are various reasons for declining markets; some buyers suspect the BoE may raise rates in the future as the interest rates have been low for longer. Indeed, even in such conditions, the market in the UK retains buyers in many urban areas Birmingham and Manchester.

To know more about Brexit and the trade war's impact on EU real estate, click Hamilton International Estates (www.hamiltoninternationalestates.com).