Last year was the most successful for the global real estate market since the pre-crisis times. Prices on European markets also showed a positive trend.
Adjusted for inflation, price trends for the year to the third quarter of 2013 was better than in the same period last year in 20 European countries out of 22, that provided statistics on the state of the market. The slowing of price cuts was observed in ten countries, and 12 countries have seen a rise in prices.
Dynamics of prices adjusted for inflation as of Q3 2013
|
Country
|
Dynamics of prices for the year to Q3 2012 (%)
|
Dynamics of prices for the year to Q3 2013 (%)
|
|
Estonia (Tallinn)
|
-0.86%
|
12.46%
|
|
Germany
|
1.21%
|
9.61%
|
|
Denmark
|
3.25%
|
6.53%
|
|
Poland (Warsaw)
|
-7.63%
|
5.13%
|
|
Turkey
|
6.66%
|
4.65%
|
|
Switzerland
|
3.34%
|
3.46%
|
|
Ireland
|
-11.00%
|
3.45%
|
|
Sweden
|
-1.95%
|
3.05%
|
|
Latvia (Riga)
|
-0.14%
|
2.44%
|
|
Iceland
|
2.23%
|
2.03%
|
|
Britain
|
-3.99%
|
1.54%
|
|
Lithuania (Vilnius)
|
-4.79%
|
0.80%
|
|
Norway
|
6.54%
|
-0.11%
|
|
Bulgaria
|
-6.84%
|
-0.21%
|
|
Finland
|
-1.02%
|
-0.24%
|
|
Portugal
|
-9.41%
|
-1.55%
|
|
Slovakia
|
-4.14%
|
-2.87%
|
|
Netherlands
|
-11.36%
|
-4.87%
|
|
Croatia
|
-8.81%
|
-6.56%
|
|
Romania
|
-12.76%
|
-7.15%
|
|
Greece
|
-13.58%
|
-8.85%
|
|
Spain
|
-14.54%
|
-9.46%
|
Tallinn, Estonia
Estonia: the best in Europe
Estonia showed the best result among the European countries in Q3 2013 and reached a record performance for the six years of rising prices. The average cost of buying a property in Tallinn increased by 12.46% in Q3 2013 compared with Q3 2012. Compared to Q2 2013, housing prices rose in Q3 by 3.78%.
According to the Estonian Central Bank, in Q3 2013 the Estonian economy grew by 0.4%. Though in Q2 2013 it grew by 1.1%. It is planned that in 2013 the whole economy will grow by 2%, and in 2014 - by 4.2%.
Berlin, Germany
Germany: market recovery against the backdrop of a slowing economy
Germany also has seen steady growth in prices. Cost of German real estate grew by 9.61% in Q3 2013 compared with the same period last year. And in Q2 2013 it grew by just 3.5%, and it declined by 3.32% in Q1. Compared with the previous quarter, prices rose by 4.44% in Q3 2013.
Germany's economy will grow in 2013 by only 0.5%. Country's economic growth slowed down over the past few years. According to the IMF, in 2010 the German economy grew by 3.9%, in 2011 by 3.4% and in 2012 - only 0.9%.
Stockholm, Sweden
On the way to success: countries that strengthen their position for the year
The strengthened European markets include Denmark. Property prices rose by 6.53% for the year in Q3 2013. The Polish capital, Warsaw, in Q3 saw an increase in prices by 5.13%. Turkish market grew by 4.65%. Switzerland and Ireland rose by 3.46% and 3.45% respectively. Sweden showed an increase of 3.05%, and the capital of Latvia, Riga, has increased by 2.44%.
In all these countries, except Turkey, the prices were rising throughout 2013. Compared with the previous quarter prices in Denmark rose by 0.62%, Poland by 4.21 %, and Ireland by 4.06%. Quarterly growth in Riga was 1.72%.
Alicante, Spain
Spain: the rise from the bottom
Spain made the worst performance of all European countries. During the year, property prices in the country dropped by 9.46%. On the other hand, the rate of decline in prices slowed down. Thus, in the Q2 of 2013 prices fell by 12.4%, in the Q1 the figure was 12.82%. The improvement is even more pronounced in comparison to the previous year, when in Q4 2012, prices fell by 13.82%, while in Q3 2012 - fell by 14.54%.
The economic situation in Spain also improved slightly in Q3 2013. After the two years of recession, the GDP of Spain grew by 0.1% compared with Q2 2013. A year ago the figure was 1.2%. In general, the Spanish economy will decline by 1.3% in 2013, according to the Bank of Spain, while a year ago the decline was of 1.6%.
Text: Kirill Ozerov, ee24.com, based on globalpropertyguide.com