Residential real estate transactions in Europe are experiencing significant growth and development.
Customer preferences: Customers in the European residential real estate market are increasingly seeking properties that offer a combination of modern amenities, convenient locations, and sustainable features. The demand for energy-efficient homes has been on the rise, driven by both environmental concerns and cost-saving considerations. Additionally, customers are placing a greater emphasis on properties that offer flexible living spaces, such as open floor plans and multipurpose rooms, to accommodate changing lifestyles and work-from-home arrangements.
Trends in the market: One notable trend in the European residential real estate market is the increasing popularity of urban living. Many European cities are experiencing a surge in demand for properties located in city centers or close to major transportation hubs. This trend can be attributed to the convenience and accessibility that urban areas offer, as well as the vibrant cultural and social scenes that cities provide. Another trend is the rise of digital platforms and technology in the real estate market. Online property listings, virtual tours, and digital transactions have become more prevalent, allowing customers to browse and purchase properties from the comfort of their own homes. This trend has been accelerated by the COVID-19 pandemic, which has led to an increased reliance on digital channels for real estate transactions.
Local special circumstances: Each country in Europe has its own unique set of circumstances that shape the residential real estate market. For example, in countries like Germany and Switzerland, there is a strong preference for renting rather than buying properties. This is due to cultural factors, as well as the availability of long-term rental contracts and tenant protection laws. In contrast, countries like Spain and Italy have traditionally had a higher rate of homeownership.
Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the residential real estate market in Europe. Low interest rates have made borrowing more affordable, encouraging individuals to invest in real estate. Economic stability and growth in many European countries have also boosted consumer confidence and purchasing power, driving demand for residential properties. Furthermore, demographic changes, such as population growth and urbanization, play a significant role in shaping the residential real estate market. Increasing urbanization has led to a higher demand for housing in cities, while population growth has created a need for new residential developments to accommodate a growing number of households. In conclusion, the residential real estate transactions market in Europe is experiencing growth and development driven by customer preferences for modern amenities and sustainable features, the trend towards urban living, the rise of digital platforms and technology, and underlying macroeconomic factors such as low interest rates and demographic changes. Each country in Europe has its own unique set of circumstances that further shape the residential real estate market.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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