Property index Overview of European Residential Markets - European housing 2013
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Property index
Overview of European
Residential Markets
European housing 2013
3rd edition, June 2014
Table of Contents Introduction...................................................................................................................................................3 Economic Development in Europe..................................................................................................................5 Residential Markets in Europe........................................................................................................................6 •• Housing Development Intensity............................................................................................................................. 6 •• Housing Stock....................................................................................................................................................... 7 •• Ownership Structure............................................................................................................................................. 7 •• Apartment Size – Number of Rooms..................................................................................................................... 8 •• Housing Costs....................................................................................................................................................... 9 Comparison of Residential Property Prices in Selected Countries and Cities..................................................10 •• Average Transaction Price of a New Dwelling in Selected Countries..................................................................... 10 •• Average Transaction Price of a New Dwelling in Selected Cities............................................................................ 12 •• Affordability of Own Housing.............................................................................................................................. 13 Mortgage Markets in Europe........................................................................................................................15 •• Indebtedness of the Housing Stock..................................................................................................................... 15 •• Residential Debt per Capita................................................................................................................................. 15 Annex: Comments on Residential Markets....................................................................................................17 Highlights.....................................................................................................................................................21 Contacts.......................................................................................................................................................22 Authors........................................................................................................................................................23
Introduction
Property Index, Overview of European Residential In addition, this year we added data regarding:
Markets, with its two-year history, has become
•• Ireland;
an important part of European real estate publica-
tions. In this context, we are pleased to present to you •• Portugal; and
the third edition. •• Israel.
Property Index analyses factors influencing the develop- The prices in the selected countries and their major cities
ment of residential markets and compares residential differ significantly as a result of historical development
property prices in selected (not only) European countries and various factors affecting the volume of supply and
and cities. demand. The main factors are particularly:
•• Housing stock
Our goal is to provide you with European residential
market data on a regular basis and answers to questions •• Intensity of residential development – completed and
on how Europeans live and at what costs. initiated dwellings;
•• Ownership structure of the housing stock; and
This publication focuses especially on housing specifics
•• Standard size of the dwelling.
and the prices of own housing in selected countries.
Most presented indicators are on a year-on-year basis
As in the last year, we focused our attention especially on:
and are to some extent also influenced by geopolitical
•• Austria; developments. For example, we can mention the seventh
•• Belgium; enlargement of the European Union in July 2013.
•• Czech Republic;
Property Index was prepared by a proven international
•• Denmark; and cross-functional team of Deloitte professionals in
•• France; the development, mortgage and real estate markets.
This publication has been prepared using data collected
•• Germany;
by individual Deloitte offices in selected countries.
•• Hungary;
Property Index capitalises on Deloitte’s extensive
•• Italy;
knowledge of the real estate and development industry,
•• Netherlands; enabling us to provide you with independent and cred-
•• Poland; ible information.
•• Spain;
We are convinced you will find this third issue of
•• United Kingdom; and the publication of interest for your business and we
•• Russia. would be delighted to receive your feedback.
Property Index Overview of European Residential Markets 3
4
Economic Development in Europe
Another difficult year for European economy brought Inflation reached 1.5% in the European Union.
some positive signs. Despite a slight decrease of real The current lower level was driven by falling commodity
GDP in the Eurozone, the European economy bottomed prices as well as the general unfavourable economic
out in mid-2013 and turned the trend in the second conditions determining the demand.
half of the year. The real GDP of the European Union
remained close the 2012 level. Major world economies The European economic outlook for 2014 is more posi-
of the United States, China and Japan experienced real tive than one year ago. The vast majority of member
GDP growth of 2%, 6% and 1.5%. countries are expected to grow slightly – including
Spain and Italy. The recovery is predicted to be region-
Strengthening domestic demand and private consump- ally relatively balanced with GDP growth in the key
tion in the EU member countries were the main factors European economies of Germany, France, Italy and
turning the trend in the second half of 2013. Futher the UK. The rate of unemployment is projected to
development of these factors is crucial for future growth decrease during 2014 as the result of slow GDP growth
hand-in-hand with the recovery on the labour market. with further positive expectations to 2015. Inflation may
become negative in some member countries; the EU
Weak bank lending continued in 2013 in most average is projected to decrease to 1%.
countries, contrasting with the increased corporate
investments financed by bonds or internally. Central After several years of treading water, slow economic
bankers kept the key interest rates at low levels. growth can be expected in Europe. The economic
outlook may be regarded as positive; however, new risks
Consolidation of unsustainable public finances occurred. The current situation in Ukraine and Russia
continued in the member countries; nevertheless, debt- may negatively affect international trade and thus slow
to-GDP rose in 2013. the economic recovery.
The European labour market remained under pres-
sure – the rate of unemployment further increased and
reached almost 12% in 2013 – its historical maximum.
A very large degree of divergence across EU countries
was recorded with the rate of unemployment ranging
from 5% in Austria and Germany to more than 25% in
Greece and Spain.
Property Index Overview of European Residential Markets 5Housing stock by accommodation unit size
Households living in apartments with a certain number of rooms, per 1,000 citizens in 2013
Russia
Hungary
Comparison of Residential Markets
Israel Housing Stock According to Ownership Structure
Poland Number of households per 1,000 citizens in 2013
Czech Republic
Italy 400
Denmark
France 350
Netherlands
EU 300
Germany
Austria 250
Portugal
United Kingdom 200
Belgium
Ireland 150
Spain
100
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
50
1 room 2 rooms 3 rooms 4 rooms 5 and more rooms
0
Housing Development Intensity From a regional viewpoint, the highest intensity of
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
initiated residential development in 2013 was found in
Completed apartments Austria (6.1 started apartments per 1,000 citizens), Israel
The indicator of housing development intensity on (5.5) and France (5.0).
Apartment owner Apartment lessee Other
the residential market of the European Union continued
to decline. The number of completed apartments (dwell- On the other hand, the
Source: lowest
National number
statistical of apartmentsInternational, calculated by Deloitte
offices/Euromonitor
ings) per 1,000 citizens decreased from 3.9 in 2011 and was initiated in Denmark (0.35 started apartments per
3.3 in 2012 to 2.5 in 2013. 1,000 citizens), Hungary (0.8) and Ireland (0.9).
The highest housing development intensity in all
Housing development intensity
selected countries in 2013 was seen in Russia (6.5 Index of the number of completed apartments per 1,000 citizens 2013, EU average = 1
completed apartments per 1,000 citizens) and Israel
(5.3). Residential development in Russia and Israel Russia 2,58
Israel 2,09
exceeded the European Union average by 158% and France 2,00
109% respectively. Austria 1,86
Poland 1,51
Netherlands 1,22
From the European countries the highest housing Belgium 1,22
development intensity in 2013 was recorded in France EU 1,00
Germany 0,99
(5.0) and Austria (4.7). Residential development in Czech Republic 0,96
France in 2013 was twice the European Union average, Denmark 0,87
United Kingdom 0,82
while in Austria it was 86% above average. Other Italy 0,72
countries above the European average include Poland, Portugal 0,72
the Netherlands and Belgium. Ireland 0,70
Spain 0,55
Hungary 0,29
Housing development intensity in Germany and 0,0 0,5 1,0 1,5 2,0 2,5 3,0
the Czech Republic in 2013 were near the European
average. Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
The lowest intensity of housing development in
2013 was found again in Hungary (0.7 completed Housing development intensity
apartments per 1,000 citizens) and Spain (1.4), The number of started apartments per 1,000 citizens 2012 and 2013
where the percentage values were 29% and 55% of
the European average, respectively. 8,0
7,0
6,10
Newly-added Ireland and Portugal reached over 70% of 6,0 5,54
the EU average in 2013. 5,04
5,0
Initiated apartments 4,0 3,31
2,99
The intensity of initiated residential construction 3,0 2,52
(the number of initiated apartments per 1,000 citizens) 1,55 2,10 2,32
2,0
sank in 2013 in the majority of European countries. 0,76
0,88 1,42 1,24
0,35 1,06
1,0
The average value of the indicator of the intensity of 0,0
initiated construction in 2013 amounts in the countries
of interest to almost 2.7 initiated apartments per 1,000
citizens, which represents a year-on-year decrease in this
indicator by almost 4%. Data regarding the European
average is not available. 2012 2013
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
6
Total consumer costs of housing
Index of the total annual costs per 1,000 citizens, EU average = 11,40 1,26 1,26 1,31 1,32
1,18
1,20 1,10
0,96 0,98 1,00
1,00
0,77
0,80
0,56
0,60
0,43 0,44
0,40 0,33
0,20 0,16 0,16
0,00
2012 2013
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
Housing Stock Housing stock
Index of the number of apartments per 1,000 citizens, EU average = 1
The housing stock in individual selected countries 1,4
changes on a year-on-year basis depending primarily on
1,18
several factors, like economic development, civic senti- 1,2 1,11 1,15
1,01 1,04 1,04 1,05
ment and also housing development intensity. 0,96 1,00
1,0
0,91 0,91 0,92 0,92
0,82 0,84
The average housing stock in the European Union in 0,8 0,75
2013 increased to 475.9 apartments per 1,000 citizens. 0,57
0,6
In 2012, the average housing stock reached 473.6
apartments per 1,000 citizens. This represents a year-on- 0,4
year positive change of this indicator by 0.5%.
0,2
In the comparison of selected countries, (as in 2011 0,0
and 2012) Spain reported the greatest housing stock
recalculated per 1,000 citizens in 2013, exceeding
the European average by more than 18%. The second-
greatest housing stock was found in newly-added
Portugal, where the percentage value exceeded the EU 2012 2013
average by almost 15%. France, which exceeded
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
the European average by more than 11%, ranked third
in 2013.
Countries such as Spain, Portugal and France remain Ownership Structure
Housing stock by accommodation unit size
rather specific markets due to the ownership of second/
Households living in apartments with a certain number of rooms, per 1,000 citizens in 2013
leisure apart¬ments particularly at the seaside or in The average values of housing stock according to
the mountains. Russiaownership structure in the European Union in 2013 are:
Hungary
Israel
As in 2011 and 2012, one of the lowest housing stocks Poland Ownership structure
Czech Republic
in 2013 per 1,000 citizen was found in Poland (almost Households per 1,000 citizens
Italy
25% below the European average), Russia (18% below Denmark
the European average) and in Belgium (almost 16% FranceApartment owner Apartment lessee Other
Netherlands
below the European average). EU
279 125 25
Germany
Source: National Statistical Offices/Euromonitor International,
Austria
The lowest housing stock in 2013 could be found in
Portugal
calculated by Deloitte
Israel, below the European average by more than United
43%. Kingdom
Belgium
In 2013, the highest proportion of privately-owned apart-
Ireland
A geographical comparison reveals a rule similar to Spain
ments could again be found in Hungary, where the average
previous indicators, which means that, Eastern European
per0%
1,00010%
citizens20% 30%
showed 112 40% 50% 60% 70%
more privately-owned 80% 90% 100%
countries show average or below-average values for
apartments than the European Union average.
the number of apartments per 1,000 citizens while 1 room 2 rooms 3 rooms 4 rooms 5 and more rooms
Western European countries show rather above-average
A high share
Source: of privately-owned
National apartmentsInternational,
Statistical Offices/Euromonitor could be calculated by Deloitte
values.
also found in Spain, Italy and the United Kingdom.
On the other hand, in Germany, Denmark, Austria,
France and the Netherlands rental housing plays
a significant role in the long term.
For example, in 2013, Germany again reported
the highest number of rented apartments from all
selected countries, ie approximately 257 rented apart-
ments per 1,000 citizens.
Property Index Overview of European Residential Markets 70,96 0,98 1,00
1,00
0,77
0,80
0,56
0,60
0,43 0,44
0,40 0,33
0,20 0,16 0,16
0,00
2012 2013
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
Housing stock
Index of the number of apartments per 1,000 citizens, EU average = 1
Israel and the Czech Republic report recently the lowest Housing Stock According to Ownership Structure
share of privately-owned housing in all of selected Number of households per 1,000 citizens in 2013
1,4
countries – there are 74 and 71 fewer privately-owned 1,18
400 1,2 1,15
apartments per 1,000 citizens than the European Union 1,11
1,01 1,04 1,04 1,05
average, respectively. 350 0,96 1,00
1,0
0,91 0,91 0,92 0,92
300 0,82 0,84
One specific detail of the residential market is 0,8 0,75
250
coopera¬tive housing, whose character, however, is 0,6
0,57
identical to privately-owned housing in many respects. 200
This form of housing remained an important part of 0,4
150
the residential market in 2013, particularly in the Czech
100 0,2
Republic, Poland and Italy.
50 0,0
Apartment Size – Number of Rooms 0
The comparison of the housing stock by real estate type
(inclination to living in family houses) still shows that
2012 2013
Western European, as opposed to other European or Apartment owner Apartment lessee Other
Eastern countries, tends to acquire or rent property with Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
a higher number of rooms. Source: National statistical offices/Euromonitor International, calculated by Deloitte
The housing stock by apartment size in the European
Union in 2013 (when taking into account the number
Housing stock by accommodation unit size
of households living in certain type of dwelling) did Households living in apartments with a certain number of rooms, per 1,000 citizens in 2013
Housing development intensity
not noticed a significant change and could be divided
Index of the number of completed apartments per 1,000 citizens 2013, EU average = 1
as follows: Russia
Russia Hungary 2,58
•• 1 room – 3% of households; Israel Israel 2,09
France Poland 2,00
•• 2 rooms – 10% of households; Czech Republic
Austria 1,86
Poland Italy 1,51
•• 3 rooms – 21% of households; Netherlands Denmark 1,22
Belgium France 1,22
•• 4 rooms – 25% of households; EU Netherlands 1,00
Germany EU 0,99
•• 5 or more rooms – 41% of households. Czech Republic Germany 0,96
Denmark Austria
0,87
United Kingdom Portugal 0,82
In 2013 the highest share of large apartments in terms United Kingdom
Italy 0,72
of the number of rooms was found in Spain, Ireland and Portugal Belgium
0,72
Ireland Ireland 0,70
Belgium. The United Kingdom ranked fourth in 2013. Spain
Spain 0,55
Over 60% of the housing stock in these countries is Hungary 0%
0,29 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
made up of apartments with 5 or more rooms. 0,0 0,5 1,0 1,5 2,0 2,5 3,0
1 room 2 rooms 3 rooms 4 rooms 5 and more rooms
In 2013, the smallest apartments from all selected coun- Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
tries could be found in Russia and Hungary.
In a geographical comparison, the inhabitants of Eastern
European countries tend to live in smaller apartments.
8Housing Costs Total consumer costs of housing
Index of the total annual costs per 1,000 citizens, EU average = 1
Based on the available data and information about 2,00
the development of the residential housing markets, 1,80 1,75
it could be stated that the index of total consumer costs 1,60
of housing remained almost unchanged in 2013. 1,40 1,26 1,26 1,31 1,32
1,18
1,20 1,10
0,96 0,98 1,00
The average consumer costs of housing in the European 1,00
0,77
Union (in other words, the costs of households in 0,80
0,56
individual EU countries such as rent, services, repairs 0,60
0,43 0,44
and reconstructions) in 2013 exceeded EUR 3,560,000 0,40 0,33
0,20 0,16 0,16
(increase by 0,5%) per 1,000 citizens in current prices
based on year-on-year exchange rates. 0,00
As in 2012, the highest housing costs of the selected
countries in 2013 were found in Denmark and also in
the United Kingdom. The total housing costs in these
countries exceeded the European Union average by 75%
2012 2013
and 32% respectively.
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
In 2013, the lowest housing costs out of the selected
countries were reported in newly-added Russia and
Israel.
Housing stock
Index of the number of apartments per 1,000 citizens, EU average = 1
As in 2011 and 2012, some of the lowest housing
costs were recorded in Hungary and Poland, where 1,4
they have for a long time not exceeded 36% and 43% 1,18
1,2 1,11 1,15
of the average housing costs in the European Union, 1,04 1,04 1,05
1,01
respectively. 0,96 1,00
1,0
0,91 0,91 0,92 0,92
0,82 0,84
0,8 0,75
A comparison of the average values of housing costs
in Eastern and Western Europe shows that the Eastern 0,6
0,57
European average remains significantly lower than that
of Western Europe. 0,4
0,2
0,0
2012 2013
Source: National Statistical Offices/Euromonitor International, calculated by Deloitte
Housing stock by accommodation unit size
Households living in apartments with a certain number of rooms, per 1,000 citizens in 2013
Russia
Hungary
Israel
Poland
Czech Republic
Italy
Denmark Property Index Overview of European Residential Markets 9
France
Netherlands
EUComparison of Residential Property
Prices in Selected Countries and Cities
Average Transaction Price of the New Dwelling Average Transaction Price of the New Dwelling
Average Transaction Price of the New Dwelling
EUR / m²
in Selected Countries EUR / m²
4 500
4 500
In the third edition of Property Index, Irish, Israeli and
Portuguese data were newly included. The different 4 000
4 000
situation of Israel compared to Western European 3 500
3 500
countries and transitive economies in Central Europe is
3 000
demonstrated. The comparison of transaction prices in 3 000
selected European countries in 2012 and 2013 indicates 2 500
2 500
the following:
2 000
2 000
•• As last year, a slight decrease of prices was recorded
1 500
in the transitive economies of Hungary, Poland and 1 500
the Czech Republic 1 000
1 000
•• The biggest drop in prices was seen in Spain. 500
500
Contrarily, the prices of new dwellings in Austria,
0
0
Germany, Denmark, the United Kingdom and Belgium HU PT
HU PT
PL RU CZ ES DE* NL IE
PL RU CZ ES DE* NL IE
DK BE AT
DK BE AT IT
IT
FR
FR
IL
IL UK
UK
grew
2012 2013
2012 2013
•• Generally, the transitive economies, Russia and
tte
e Portugal have the lowest average transaction prices, * bid price
* bid price
Source: National Statistical Authorities, Deloitte data calculations
just slightly above EUR 1,000/m2 (excluding Hungary, Source: National Statistical Authorities, Deloitte data calculations
with prices under EUR 1,000/m2)
•• Due to the continuous price decrease in Spain,
Average Transaction Price of the New Dwelling
the prices drew near the prices of the Czech Republic Average Transaction Price of the New Dwelling
Annual change (%)
Annual change (%)
•• The group of countries with average realised prices AT
AT
around EUR 2,000/m2 includes the Netherlands, DE*
DE*
Ireland, Denmark, Belgium and Austria DK
DK
•• Prices of the new joiner, Israel, are comparable to UK
UK
the most expensive European countries - UK and BE
BE
France CZ
CZ
PL
PL
•• Still decreasing prices in Italy brought its level near FR
FR
Austria RU
RU
NL
NL
The year-on-year price changes differed significantly in HU
HU
the compared countries. The highest price growth was IT
IT
seen in Austria (+7.0) and Germany (4.9%), followed by ES
ES
3,0
3,0
Denmark (+4.4%). Moderate price growth was recorded -15,0% -10,0% -5,0% 0,0% 5,0% 10,0%
-15,0% -10,0% -5,0% 0,0% 5,0% 10,0%
in the UK (+3.3%) and Belgium (+2.4%). The transitive
itte * bid price
e economies of Czech Republic and Poland experi- * bid price
Source: National Statistical Authorities, Deloitte data calculations
enced a slight decrease in prices denominated in EUR Source: National Statistical Authorities, Deloitte data calculations
(-0.2%), followed by France (-0.9%), Russia (-1.3%) and
the Netherlands (-2.9%). Hungary again experienced
a price decrease (-3.6%). Transaction price as the percentage of the offered price of the new dwelling
Transaction price as the percentage of the offered price of the new dwelling
Negative price development of the new dwellings ES
ES
continued in Spain (-13.5%) and Italy (-4.9%).
CZ
CZ
IT
IT
10
DK
DKCZ
DK
PL
UK
FR
BE
RU
CZ
NL
PL
HU
FR
IT
RU
ES
NL
3,0 HU -15,0% -10,0% -5,0% 0,0% 5,0% 10,0%
IT
e
ES * bid price
Source: National Statistical Authorities, Deloitte data calculations
3,0 -15,0% -10,0% -5,0% 0,0% 5,0% 10,0%
e * bid price
Source: National Statistical Authorities, Deloitte data calculations
Transaction price as the percentage of the offered price of the new dwelling
ES
The spread between the offered and final transaction Transaction price as the percentage of the offered price of the new dwelling
prices of new dwellings is a very important market
CZ
indicator as it may demonstrate the situation of buyers ES
(demand side) and sellers (supply side) and their
negotiating power. This indicator may be compared in IT
CZ
Poland, Denmark, the Czech Republic, Italy and Spain;
in the other countries, statistical authorities analyse only
DK
one of the transaction or offered prices. IT
Compared to 2012, the discount decreased in Denmark PL
DK
and Italy in 2013. In the economies of the Czech
Republic and Poland, the discount slightly increased. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The highest gap between the transaction and offered PL
price was recorded in Spain, indicating a weak demand 2012 2013
side and difficult position on the supply side. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: National Statistical Authorities, Deloitte data calculations
The prices vary when comparing new and older dwell- 2012 2013
ings to be purchased. Generally, older dwellings were
Source: National Statistical Authorities, Deloitte data calculations
significantly cheaper in 2013 especially in Hungary
(-49% in 2013), Germany (-41%), Austria (-37%) and
France (-33%). In the Czech Republic, Poland and
Transaction price difference between new and older dwellings
Ireland, older dwellings were 28%, 19%, 18% and 15%
Discount (%) of older dwellings with respect to new dwelling
below the price of new developments. The difference
was less significant in Spain with a gap of 7%. PT
Transaction price difference between new and older dwellings
1,75 UK
Discount (%) of older dwellings with respect to new dwelling
The opposite situation was recorded in the UK and ES
1,31 1,32
Portugal. These are the only two countries where new PT
IL
1,75developments were sold at lower prices than older UK
PL
dwellings. ES
IT
1,31 1,32 IL
CZ
PL
FR
IT
AT
CZ
DE
FR
HU
AT
-60% -50% -40% -30% -20% -10% 0% 10% 20% 30%
DE
HU 2012 2013
-60% -50% -40% -30% -20% -10% 0% 10% 20% 30%
Source: National Statistical Authorities, Deloitte data calculations
2012 2013
te
Source: National Statistical Authorities, Deloitte data calculations
e
Average Transaction Price of the New Dwelling
EUR / m²
1,18 12 000
1,11 1,15
Average Transaction Price of the New Dwelling
EUR / m²
10 000
1,18 128 000
1,11 1,15 000
106 000
000
Property Index Overview of European Residential Markets 11
84 000
000
6 000CZ
IT
FR
CZ
AT
FR
DE
AT
HU
DE -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%
HU
2012 -50%2013 -40%
-60% -30% -20% -10% 0% 10% 20% 30%
Source: National Statistical Authorities, Deloitte data calculations
2012 2013
oitte Source: National Statistical Authorities, Deloitte data calculations
oitte
Average Transaction Price of the New Dwelling
EUR / m²
Average
1,18 Transaction Price of the New Dwelling Average Transaction Price of the New Dwelling
12 000
1,11 1,15 EUR / m²
,05 in Selected Cities
1,18 10 000
1,15 12 000
1,11
1,05 A comparison of transaction prices in selected European
8 000
cities in 2012 and 2013 indicates the following: 10 000
6 000
•• Inner London is still the most expensive city in Europe. 8 000
Price growth was recorded between 2013 and 2012 4 000
6 000
as well as a year ago. Outer London prices remained
stable just below EUR 6,000 in 2013. 2 000
4 000
•• In Paris, the average transaction prices of older apart- 0
2 000
Paris (inside)
Outer London
Aarhus Aarhus
Saint-Petersburg
Prague Prague
Galway Galway
Valencia Valencia
Lisbon Lisbon
Brussels Brussels
Berlin
Krakow
Brno
Graz
Cobenhaven
Odense Odense
Porto
Ekaterinburg
Amsterdam
Ostrava Ostrava
HamburgHamburg
Frankfurt Frankfurt
Linz
BarcelonaBarcelona
Utrecht Utrecht
RotterdamRotterdam
Antwerp Antwerp
Ghent Ghent
Milan
Turin
Inner London**
JerusalemJerusalem
Haifa
Paris region
Marseille Marseille
Moscow Moscow
Madrid Madrid
Rome Rome
Lyon
Budapest Budapest
Warsaw Warsaw
Munich Munich
Cork
Tel- Aviv Tel- Aviv
Wien
Den HaagDen Haag
Dublin Dublin
ments slightly decreased to EUR 8,140 in 2013 and to
EUR 5,400 in Paris region. 0
Paris (inside)
Outer London
Saint-Petersburg
Berlin
Krakow
Brno
Graz
Cobenhaven
Porto
Ekaterinburg
Amsterdam
Linz
Milan
Turin
Inner London**
Haifa
Paris region
Lyon
Cork
Wien
•• Munich, the most expensive German city in terms of
housing, continued in price growth and average bid HU PT PL RU CZ DE* IE*** AT ES DK NL BE IT UK IL FR**
prices exceeded EUR 5,600/m2 in 2013;
loitte 2012PL 2013 CZ
•• Cities with average transaction prices of EUR 3,500 HU PT RU DE* IE*** AT ES DK NL BE IT UK IL FR**
- 4,200/m2 are Hamburg, Vienna, Milan, Rome and
loitte * bid price, **older
2012 2013 dwellings, *** all dwellings
Moscow; Source: National Statistical Authorities, Deloitte data calculations
•• Not surprisingly, the cheapest capitals can be found in * bid price, **older dwellings, *** all dwellings
the CEE region, namely: Source: National Statistical Authorities, Deloitte data calculations
-- Budapest, with an average transaction price of EUR
1,140/m2;
Comparison of the Main Cities to the Country Average
(country average = 100%), 2013
-- Warsaw, with an average transaction price of EUR
1,704/m2. Comparison of the Main Cities to the Country Average
400%
(country average = 100%), 2013
350%
A comparison of the prices of dwellings in major
400%
European cities and their respective national average 300%
350%
may identify the biggest price differentiation country by 250%
country: 300%
200%
250%
•• There are two major cities where the prices exceed 150%
the national average more than three times – Munich 200%
100%
and Moscow, where the prices reach 316% and 150%
50%
100% 365% of its country average; 100%
0%
Outer London
Prague Prague
Berlin
Valencia Valencia
Aarhus Aarhus
Lisbon Lisbon
Galway Galway
region
Ekaterinburg
Graz
Odense Odense
Brussels Brussels
Paris (inside)
•• There is a group of cities where prices reach more
Budapest Budapest
Saint-Petersburg
Brno
Porto
HamburgHamburg
Munich Munich
Frankfurt Frankfurt
Madrid Madrid
Utrecht Utrecht
RotterdamRotterdam
Antwerp Antwerp
Ghent Ghent
Milan
Turin
JerusalemJerusalem
Haifa
Krakow
Moscow Moscow
Ostrava Ostrava
Linz
BarcelonaBarcelona
Cobenhaven
Amsterdam
Warsaw Warsaw
Cork
Rome Rome
Marseille Marseille
Inner London**
Lyon
Den HaagDen Haag
Wien
Tel- Aviv Tel- Aviv
Dublin Dublin
50%
100%
than 200% of its national average – Prague, 0%
Paris
Outer London
Berlin
Paris region
Ekaterinburg
Graz
Saint-Petersburg
Brno
Paris (inside)
Porto
Amsterdam
Milan
Turin
Haifa
Krakow
Linz
Cobenhaven
Cork
Hamburg, London and Paris;
Inner London**
Lyon
Wien
loitte
•• 7 capital cities exceed the national average by more
loitte HU PT PL RU CZ DE* IE*** AT ES DK NL BE IT UK IL FR**
than by 50% -, Lisbon, Warsaw Berlin, Vienna,
Madrid, Copenhagen, and Amsterdam. * bid price, ** older dwellings, *** all dwellings
HU PT PL RU CZ DE* IE*** AT ES DK NL BE IT UK IL FR**
Source: National Statistical Authorities, Deloitte data calculations
* bid price, ** older dwellings, *** all dwellings
Source: National Statistical Authorities, Deloitte data calculations
Average Transaction Price of the New Dwelling - Capitals
Annual change (%), 2013
Average Transaction Price of the New Dwelling - Capitals
Jerusalem
Annual change (%), 2013
Wien
Cobenhaven
Jerusalem
Berlin*
Wien
Brussels
Cobenhaven
12
Warsaw
Berlin*
Inner London**
Brussels
Moscow
Warsaw250% 250%
200% 200%
150% 150%
100% 100%
50% 50%
00%90% 100%
0% 0%
Outer London
Prague
Berlin
Valencia
Aarhus
Lisbon
Galway
Paris region
Ekaterinburg
Graz
Odense
Brussels
Paris (inside)
Budapest
Saint-Petersburg
Brno
Porto
Hamburg
Munich
Frankfurt
Madrid
Outer Antwerp
Tel-Ghent
Milan
Turin
Jerusalem
Haifa
Krakow
Moscow
Ostrava
Linz
Barcelona
Cobenhaven
Amsterdam
Utrecht
Rotterdam
Warsaw
Cork
Rome
Marseille
London**
Lyon
Haag
Wien
Tel- Aviv
Dublin
London
Prague
Berlin
Valencia
Aarhus
Lisbon
Galway
region
Ekaterinburg
Graz
Odense
Brussels
Paris (inside)
Budapest
Saint-Petersburg
Brno
Porto
Hamburg
Madrid
Ostrava
Munich
Frankfurt
Utrecht
Jerusalem
Haifa
Krakow
Moscow
Linz
Barcelona
Cobenhaven
Amsterdam
Rotterdam
Antwerp
Ghent
DenMilan
Turin
Marseille
Warsaw
Cork
Rome
Inner London**
Lyon
Haag
Wien
Aviv
Dublin
ms
Den
Paris
ed
e by Deloitte
Inner
HU PT PL HU PT CZPL
RU RU
DE* CZ
IE*** DE*
AT IE***
ES AT
DK ES
NL DKBE NL
IT BE
UK IL IT UK
FR** IL FR**
* bid price, ***older
bid price, ** older
dwellings, ***dwellings, *** all dwellings
all dwellings
Source:
Source: National National
Statistical StatisticalDeloitte
Authorities, Authorities,
data Deloitte data calculations
calculations
The price development between 2012 and 2013 was Average Transaction
Average Transaction Price of thePrice
New of the New
Dwelling Dwelling - Capitals
- Capitals
Annual Annual
change (%), change (%), 2013
2013
recorded in the capitals of the compared countries.
The most significant price decrease (in EUR) was seen
Jerusalem Jerusalem
in Madrid (-24.8%), followed by Rome (-5.6%), and Wien Wien
Budapest (-4.8%). Cobenhaven Cobenhaven
Berlin* Berlin*
The opposite trend – dynamic price growth- was signifi- Brussels Brussels
cant mainly Jerusalem (+13.3%), in Vienna (+9.1%), Warsaw Warsaw
Inner London**
Copenhagen (+8.8%), Berlin (+7.1%) and Brussels Inner London**
(+4.1%). Moscow Moscow
Prague Prague
Affordability of Own Housing Amsterdam Amsterdam
Paris** (inside)Paris** (inside)
Budapest
As in the first two editions of Property Index, the gross Budapest
Rome Rome
monthly salaries and the transaction prices of the new Madrid
Madrid
dwellings in the selected cities and countries were
-30% -25%-30% -20% -25% -15% -20% -10% -15% -5% -10% 0%-5% 5%0% 10%5% 15% 10% 15%
compared to measure the affordability of own housing.
The criterion is the number of the annual gross salaries *bid price
*bid price **older **older dwellings
dwellings
required to buy a standard-sized new dwelling (70 m2). Source:
Source: National National
Statistical StatisticalDeloitte
Authorities, Authorities,
data Deloitte data calculations
calculations
The criterion ranges from 2.1 years in Denmark to 12.1
years in Israel. AffordabilityAffordability
of Own Housing of Own Housing
Gross annual Gross annual
salaries salaries
for the for the standardized
standardized new dwellingnew dwelling
(70 m²), 2013(70 m²), 2013
The most affordable own housing was recorded in 14
14
Denmark, Germany and Portugal. These three coun-
6,10tries are 6,10
followed by the group of countries including 12 12
5,54
5,04 Belgium, the Netherlands, Ireland, Spain and Austria,
5,54
04
with relatively affordable own housing ranging 3.6 – 5.6 10 10
3,31 years for a standard dwelling
8 8
99
Another group with less-affordable own housing include 6
6
countries with 7.2 – 7.4 years needed for a 70 m2
new dwelling – the Czech Republic, Italy, Hungary and 4 4
Poland.
2 2
The highest number of gross annual salaries is needed in
0
France (7.9), the UK (8.5), Russia (10.4) and Israel (12.1). 0
DK DE PT BE NL IE ES AT CZ IT HU PL FR UK RU IL
DK DE PT BE NL IE ES AT CZ IT HU PL FR UK RU IL
Source:
Source: National National
Statistical StatisticalDeloitte
Authorities, Authorities,
data Deloitte data calculations
calculations
ed
e by Deloitte
Affordability
Affordability of housing
of housing and and thelevel
the economic economic level
140 140
DP per capita in PPP (EU average =100)
DP per capita in PPP (EU average =100)
120 120
100 100
80 80
60 60
Property Index Overview of European Residential Markets 13
40 405,54
5,04
10
1
8
6
4
2
0
DK DE PT BE NL IE ES AT CZ IT HU PL FR UK RU IL
Source: National Statistical Authorities, Deloitte data calculations
eloitte
The affordability of own housing does not seem to Affordability of housing and the economic level
correlate significantly with the economic level of
140
the country. When GDP per capita in PPP and afford-
GDP per capita in PPP (EU average =100)
ability are seen in one chart, three groups of countries
120
may be seen:
1. Denmark, Germany, Belgium, the Netherlands and 100
Ireland with high levels of GDP per capita in PPP,
together with Spain and Portugal with lower levels 80
of GDP per capita, create a group of countries with
60
relatively-affordable own housing
2. Italy, the UK and France with higher levels of GDP 40
per capita together with transitive economies of
the Czech Republic, Hungary Poland are in the group 20
of countries with lower affordability of own housing
0
(7.2 – 8.5 gross annual salaries for the new dwelling – 0,0 2,0 4,0 6,0 8,0 10,0 12,0
70 m2). Number of average gross annual salaries to buy the new dwelling (70 m²)
3. Israel and Russia where own housing affordability is DK DE PT BE NL IE ES AT CZ IT HU PL FR
below average. UK IL RU
Austria, with GDP per capita in PPP significantly higher Source: National Statistical Authorities, IMF, Deloitte data calculations
than the EU average, cannot be included in any group,
with 5.6 annual salaries required to buy a dwelling.
Residentail debt to GDP (%)
2013
120
100
80
60
40
20
0
RU CZ PL HU IT AT IL* FR DE BE ES PT IE UK DK NL
Source: European Mortgage Federation , Bank of Israel
*2012
Residential debt per capita (adult over 18 years of age, EUR) and average monthly gross salary
60 000
50 000
l debt per capita (EUR)
40 000
14
30 000GDP per capita i
GDP per capita in PPP (EU
60
80
40
60
Mortgage Markets in Europe 40
20
20
0
0,0 2,0 4,0 6,0 8,0 10,0 12,0
Number of average gross annual salaries to buy the new dwelling (70 m²)
0
0,0 DK 2,0 DE PT 4,0BE NL 6,0 IE ES AT8,0 CZ IT 10,0HU PL 12,0FR
averageILgrossRU
Number ofUK annual salaries to buy the new dwelling (70 m²)
DK DE PT BE NL IE ES AT CZ IT HU PL FR
Source: National Statistical Authorities, IMF, Deloitte data calculations
UK IL RU
Source: National Statistical Authorities, IMF, Deloitte data calculations
Residentail debt to GDP (%)
2013
Indebtedness of the Housing Stock Residentail
120 debt to GDP (%)
2013
An important indicator on the residential market is 120 100
the indebtedness of the housing stock, ie the proportion
of the volume of mortgage loans to GDP. This indicator 80
100
has significantly-different values for the monitored
countries – while the EU average is 52%, the Czech
80 60
Republic reports the lowest level of indebtedness from
EU members, ie 14.3% of GDP; the Netherlands and
60 40
Denmark, on the other hand, report the highest level
of indebtedness amounting to a mortgage-to-GDP
proportion of over 100%. Russia, as a non EU-member 40 20
country, in comparison has the lowest indebtedness of
the housing stock, reaching 3.2% of GDP. 20 0
RU CZ PL HU IT AT IL* FR DE BE ES PT IE UK DK NL
Of the monitored Western European countries, 0 Source: European Mortgage Federation, Bank of Israel
the lowest level of indebtedness is reported by RU *2012
CZ PL HU IT AT IL* FR DE BE ES PT IE UK DK NL
the housing stock in Italy and Austria, amounting to
Source: European Mortgage Federation, Bank of Israel
23% and 27% of GDP. In the two major European *2012
economic powers, France and Germany, the recorded
volume of mortgages is 43% and 45% of GDP.
Residential debt per capita (adult over 18 years of age, EUR) and average monthly gross salary
Residential Debt per Capita
60 000
Residential debt per capita (adult over 18 years of age, EUR) and average monthly gross salary
The following criterion has several factors that influence
50 000
Residential debt per capita (EUR)
its value: 60 000
•• Price of the property; 40 000
50 000
Residential debt per capita (EUR)
•• Loan to Value;
30 000
40 000
•• Number of mortgages issued to number of inhabitants.
20 000
30 000
The newest EU joiners, the transitive economies
of Hungary, Poland and the Czech Republic, with 10 000
20 000
the lowest salaries, have the lowest residential debt per
capita in the EU. In line with the lower salaries – lower 0
10 000 0 1 000 2 000 3 000 4 000 5 000 6 000
residential debt equation, Russian residential debt per
Average monthly gross salary
capita is the lowest in the comparison. 0
0 1 000 PL
HU 2 000ES
CZ PT3 000IT AT 4 000
UK FR 5 000
NL DK6 000BE DE
The Netherlands, Ireland, the UK, France and Austria, IE
Average monthly RU IL
gross salary
with salaries ranging from EUR 2,477 to 3,000, HU PL CZ ES PT IT AT UK FR NL DK BE DE
Source: European Mortgage Federation, National Statistical Authorities, Bank of Israel,
differ a lot in the residential debt per capita – in IE RU Deloitte
IL data calculations
the Netherlands, the debt is 4 times higher than in
Austria (EUR 48,500 compared to EUR 12,300). The UK, Source: European Mortgage Federation, National Statistical Authorities, Bank of Israel,
Deloitte data calculations
with EUR 30,700 and Ireland with EUR 36,400, are
significantly higher than France, with EUR 16,900.
Compared to other Western European countries, Italy
has relatively-low residential debt per capita, even
considering the relatively-low average salary.
The highest debt per capita can be seen in Denmark;
on the other hand, the average gross salaries are by far
the highest.
Property Index Overview of European Residential Markets 15Annex:
Comments on Residential Markets
Austria Czech Republic
Since 2004, residential property prices in real terms A recovery on the residential market was recorded in
have increased steadily at an average annual rate of 2013. Prices were bottoming out and the number of
7%. The Austrian housing market has shown dynamic transactions grew mainly in the second half of the year.
development in the last few years, with Vienna leading New price levels, which were acceptable to the sellers,
the way. buyers and also financing banks, were set. The market
was not significantly influenced by a major overhang
Vienna continues to be a popular location for high- of demand or supply, developers had more-favourable
quality residential real estate (starting at € 6,000 per entry conditions (construction costs, financing) to start
square metre) in 2013. The sale of residential real estate new projects than in 2007 – 2012 and people stopped
in the top segment has already achieved prices of more postponing the purchase of real estate.
than € 20,000 per m2. The sharp increase in prices can
be attributed partly to rising demand prompted by The development of housing prices in 2013 stabilised
the global economic crisis, as money has flown into but differentiated in terms of both price type (realised
“safe” residential property investments. In the mid-price prices compared to bid prices) and regional develop-
segment, condominiums of between 40 and 80 m2 are ment (Prague compared to other regions of the Czech
most popular. Despite the steep price increases of recent Republic). The relative recovery of the residential market
years, housing in Austria is still relatively achievable, in 2013 occurred despite the minor slowdown in
partly as a result of government-subsidised residential the economy, the deterioration in the labour market and
construction. demographic trends.
Belgium The outlook for 2014 is rather positive with
the predicted upturn of the economy and recovery on
Residential property prices in Belgium increased with the residential market. Strengthening demand particu-
approximately 2% compared to 2012. There are no larly on the Prague residential market may lead to slight
current indications that the moderate annual increase in price growth.
prices seen historically on the Belgian market would not
continue in 2014 in line with inflation. The highest sale The conditions for mortgage financing remain favour-
prices for residential property can be found in Brussels, able and no substantial administrative intervention is
with statistics indicating a significant premium compared going to happen in 2014.
to other main cities like Antwerp and Ghent.
Denmark
Investment activity in Belgian residential property
remained stable in 2013 and no excessive debt accumu- The prices found their bottom in 2012. The trend
lation by Belgian households has been observed. changed in 2013; however, this development is largely
skewed by price appreciation in the largest cities of
Due to very high registration duties (among the highest Denmark, while the prices in rural areas of Denmark are
in Europe), rotational rate of existing stock is tradition- stagnant or declining. Furthermore, the Danish residen-
ally slow as compared to other countries. The threat of tial market is still considered fragile as a consequence of
possible heavier future taxation of real estate, especially the uncertain market conditions of the financial markets.
with regards to the tax deductibility of mortgage-related
costs, could impact the residential real estate market in
2014.
Property Index Overview of European Residential Markets 17France Hungary
French residential market was relatively stable in prices The number of new developments further decreased by
(-1.6%) but recorded decrease in housing construction approximately 30% in 2013. In spite of some opti-
and a drop in the number of transactions in 2013 (-5%). mistic expectations at the beginning of the year, not
much positive change was experienced on the market.
On the market within Paris (Inner Paris), after a slight Transaction volume has decreased more than 50% since
increase in 2012, there has been a small decline in prices 2007. The marketing period extended and transaction
initiated in early 2013. Prices of old dwellings range prices fell, while the bidder position further improved in
from € 6 790/m² to € 12 390/m² between districts. 2013.
The housing stock in Ile-de-France (Outer Paris), has The transaction volume of new dwellings covers only
increased significantly since 2010 (20% in 2013). 3-4% of the total volume. Rental prices have decreased
However, if the prices of old dwellings declined by 20% since 2008; however, a steady increase is fore-
(as in Paris), prices of new dwellings rose slightly. seen for the upcoming period.
Germany Due to the current economic growth, the slightly
improving market sentiment and some additional avail-
The German residential market has been stable. able financing in housing sector, the residential market
Residential investors are predominately risk-averse was probably already bottoming out in 2013 and is
seeking low-risk opportunities. The attractiveness of expected to improve in the mid-term.
investments into residential property is explained by
the bond-like features that these investments exhibit. Israel
Due to high granularity of the tenant structure and
the fact that housing is a basic need, tenant fluctua- The general trend in the housing market in Israel is
tion is less dependent on the overall economic climate. an increase of prices. Since 2007, prices have risen
The asset class of residential investments continued its by about 80%, which caused a further decrease
story of success in the year 2013. Hence, the market in the affordability of own housing. Affordability is
trend that has endured for several years - having only the lowest across the compared countries.
been interrupted during the financial crisis from 2008-
2010 - persists.
Residential real estate has already been strong in 2012.
Around two thirds of total real estate transaction
volume (€162 bn) recorded by the official valuation
committees in Germany accounted for residential use.
Around 1 million transactions accounted for the total
transaction volume, which was 3% higher compared to
the previous year. Hence, transaction volume increased
for the third year in succession. However, it did so at
a lower rate compared to a 14% rise in 2010 and a 6%
rise in 2011.
18Italy Netherlands
Following a period of stagnation, the first signs of The average transaction price decreased over 2013.
recovery are being seen. In the context of a fragile Transaction prices have decreased by 20% since 2008
market, the predicted improvement for the second half (pre-crisis). The transaction volume decreased in 2013
of 2013 was verified to some extent but was not by any as well. In contradiction to the first half of 2013,
means robust. The prospect for economic growth in the transaction volume increased (10.6%) during
2014, even if weak, can be linked not only to the slight the second half of 2013 compared to the same period
strengthening of consumer and business confidence in 2012.
but also to the returning confidence in the banking
sector, which is slowly opening to requests from lenders. The addition to the housing stock was 4.8% higher
The latest information from the Italian banking associa- compared to 2012. However, it must be stated that
tion reports that in the first 3 months of 2014 the value the permits that are issued in 2013 are at an all-time low
of mortgage loans granted have jumped by over 18% in (26,000) which is -20% compared to 2012 and even
comparison to the same period in 2013 – a positive start -70% compared to 2008 (pre-crisis). This decrease is for
to a challenging year. the greater part attributable to the reduced develop-
ment ambitions of social housing corporations. This
A decline in the number of transactions on the residen- might be a serious cause of concern since the amount
tial market was recorded - from its peak of 869,308 in of households is expected to rise evenly with 50,000 per
2006 to only 406,967 transactions in 2013 (-53%). year until 2020.
In addition to the reduction in trading activity on Overall, the second half of 2013 shows elements of
the residential market, there has also been a signifi- stabilisation: house prices are bottoming out and there
cant shift in the profile of new buyers. Previously, two is a significant increase in transaction volumes. The first
thirds of the acquisitions on residential market involved half of 2014 should reveal if this stabilisation is structural
mortgage financing; however by 2013 the effect of and sets through to 2014. Notwithstanding, the overall
the credit squeeze reduced this proportion to less than market segment is more positive compared to 2012 and
half. there is an increasing interest notable of foreign inves-
tors in the Dutch rental segment. In addition, a new
Ireland legal amendment enables social housing corporations
to dispose of housing portfolios more easily to private
Residential sales in 2013 remained relatively static investors. Altogether, this might result in a tipping point
compared to 2012, although international investment for the Dutch housing market in 2014.
in Irish residential property increased substantially in
the period. Supply remained constrained in Dublin in
2013 mainly due to vendors’ inability to accept current
prices due to negative equity, an unwillingness to give
up tracker rate mortgages and a lack of new construc-
tion, which is affecting availability.
Rents continue to rise in 2013 as demand outstrips
supply within the market. As supply reaches crisis levels,
we anticipate a growth in residential construction in
the near future.
Property Index Overview of European Residential Markets 19Poland Spain
Positive development was recorded on the residential A further price decrease on the residential market was
market in 2013. The overall number of sold apartments recorded in 2013. Therefore, Spain reported negative
reached a level comparable to that achieved in the peak values since 2007, with a total decrease of -41.4%. In
year of 2007. terms of the indicator of housing development intensity,
in 2013 Spain registered a lower amount of developing
There are several reasons behind this, among which are building works and a higher housing stock, based also
past and planned changes in legislation, such as that on a population decrease.
implemented as of 1st January 2014 - the ban on new
mortgage finance covering 100% of the purchase United Kingdom
price. On the other hand, developers have been selling
projects commenced before mid-2012, and therefore 2013 was the year that finally saw a sustained pick up in
are not subject to implemented stronger control over housing market activity. Consumer confidence increased
purchasers’ pre-payments. throughout the year as the economic outlook improved,
and this fed through into much stronger demand in
Limited new supplies combined with growing demand the housing market.
resulted in a gradual decrease of available stock (number
of unsold completed apartments), which at the end Prices rose steadily and the rises were no longer
of 2013 equalled 5 quarters of sales. Such level is confined to London. London remains a very different
perceived as typical for stable markets. Prices did not market to the rest of the UK, however, with demand
change significantly during 2013 and are not expected driven by a wide range of overseas buyers as well
to change over 2014 as developers will focus on dwell- as domestic purchasers.
ings eligible for support from recently introduced new
governmental programmes. Development activity has started to pick up as well,
although the UK in general remains undersupplied,
Over the coming years, the biggest change is expected despite initiatives to boost activity. This is one of
in relation to the rental market, related to the launch the main factors behind the rapid acceleration in prices.
of a dedicated property fund investing in apartments For now, prices appear to be continuing to rise, but
for rent, which has been set up by the state-owned the big question will be the impact of interest rate
BGK bank. increases when they arrive. Buyers are currently benefit-
ting from record-low mortgage rates, but rates are likely
Portugal to rise as base rates normalise over the next five years.
The Portuguese residential market in 2013 reflected
the recovery of the economy and consequently
registered a slight upturn in the demand and prices
of residential assets. The banks are still a major player
in the market, with a large amount of properties in
the balance sheet that they need to sell, not leaving
much room for new developments.
Russia
In 2013, the market was active in terms of construc-
tion volume. Rouble-denominated prices continued to
grow with inflation, almost reaching the pre-crisis level
of the 1st half of 2008. The year-end was characterised
by a high level of uncertainty related to political and
economic issues.
20Highlights
•• The highest housing development intensity in the selected countries in
2013 was seen in Austria, Israel and France
•• The lowest housing stock in 2013 per 1,000 citizens across EU member
states was recorded in Poland (25% below the European average)
•• The highest level of privately-owned housing was seen in Hungary,
Spain and Poland. The highest share of rental housing was recorded in
Germany
•• Also in 2013, the highest number of large apartments was found in
Spain, Ireland and Belgium
•• The highest housing costs of the selected countries in 2013 were found
in Denmark
•• The year-on-year price changes differed significantly in the compared
countries. The highest price growth was seen in Austria and Germany.
Contrarily, the significant price drop was seen in Spain and Italy.
•• From the compared countries and cities:
-- London and Paris remained the most expensive capitals in Europe
with an average transaction price exceeding EUR 10,000/m2 in
Inner London and EUR 8,100/m2 in Paris
-- The cheapest capitals can be found in the CEE region, namely:
Budapest, with an average transaction price of EUR 1,140/m2 and
Warsaw with EUR 1,704/m2. Lisbon is the cheapest capital from
the elder EU-members with an average transaction price of EUR
1,640/m2
-- There are 2 major cities where the prices exceed the national average
more than three times – Munich and Moscow
•• To buy a new dwelling (70 m2), the number of annual gross salaries
needed ranges from 2.1 in Denmark to 12.1 in Israel.You can also read
