Dynamics of housing prices in the European Union: Eurostat statistics for 6 months of 2020

October 9, 2020
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Dynamics of housing prices in the European Union in 2020
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Eurostat has calculated the House Price Index (HPI) for the first 2 quarters of 2020. On average, the value of residential property in EU countries increased by 5% compared to the same period in 2019.
The HPI calculation takes into account all changes in the prices of primary and secondary housing under sale and purchase agreements for a given period. This is the average for all countries in the region.

Dynamics of housing prices in the Eurozone and the European Union by year

Dynamics of residential property prices in the European Union and Eurozone, 2010-2020

The most obvious price increases are seen when comparing 2020 with the same periods in 2019. Compared to previous quarters, the growth is only around 1%.

Housing price increases in the Eurozone and the European Union in the first half of 2020

Reporting period / Period for comparison Housing Price Index in the Eurozone Housing Price Index in the European Union
1st quarter 2020 /
1st quarter 2019
+5,1% +5,6%
2nd quarter 2020 /
2nd quarter 2019
+5% +5,2%
1st quarter 2020 /
4th quarter 2019
+1% +1,2%
2nd quarter 2020 /
1st quarter 2020
+1,7% +1,5%

However, the positive trend in the regional averages does not reflect price fluctuations in individual countries. However, many countries have seen their housing prices slow down and fall since March 2020.

This is due to the fact that at that time the EU countries began to introduce quarantine measures and to close borders due to the COVID-19 pandemic. Buyers were unable to come and see the facilities.

Dynamics of housing prices in EU countries with investment programmes

Eurostat presented data on 4 EU countries that offer citizenship or residence permits when buying residential property: Malta, Cyprus, Portugal, Spain.

Country Fluctuations in prices in comparison with the previous quarter Fluctuations in prices in comparison with the same quarter of 2019
1st quarter
2020
2nd quarter
2020
1st quarter
2020
2nd quarter
2020
Spain +1,2% 0% +3,3% +2,2%
Cyprus +2,5% +0,3% +1,1% -2,9%
Malta -4,4% +1,5% +5,5% +3,4%
Portugal +4,9% +0,8% +10,3% +7,8%

Cyprus was the only country among the countries with investment programmes where HPI showed negative annual dynamics in housing prices compared to the 2nd quarter of 2019..

Real estate prices in Cyprus started to fall at the end of 2019. At the end of 4th quarter, the figure fell by 4.8% compared to the same period in 2018 and by 3.7% – compared to the 3rd quarter of 2019.

The fall in prices was a result of the general decline in demand for Cyprus property. However, this has encouraged foreign investors to buy homes at favourable prices, including for participation in the Cyprus Citizenship Programme for investment.

For more information about the situation on the Cyprus real estate market.

The terms and conditions of the most popular EU programmes under which you can obtain citizenship or residence permits for investments:

  1. Citizenship, residence permit and permanent residence permit programmes are available in Malta. A prerequisite for participation is the purchase or rental of property.
  2. Cyprus grants citizenship for the purchase of real estate worth from 2 million euros.
  3. Residence permit in Spain can be obtained for real estate investments from 500 000 €.
  4. Portugal gives the opportunity to obtain a residence permit status for the purchase of real estate from 350 000 €.
  5. Greece offers the most inexpensive program for obtaining a residence permit of the European Union. Investors only need to invest in real estate from 250 000 €.

It is difficult to predict how the real estate market will behave if the second wave of pandemics and quarantine measures begins. But statistics for the first half of 2020 show that this is a good time to buy real estate. Until the market fully recovers, you can buy the best properties for less money – and get official status in the European Union.

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