Property Index Overview of European Residential Markets - Deloitte

10%. Typical Loan-to-Value in the Financing of Residential Development Projects. Source: Deloitte analysis ..... where new building prices rose by an astounding. (+31.7%). .... and Dublin. • The best performing market in 2014 was Dublin with.
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Property Index Overview of European Residential Markets Financing of Residential Real Estate Projects 4th edition, June 2015

Property Index Overview of European Residential Markets


Table of Contents







Economic Development in Europe

Focus: Financing of Residential Real Estate Projects

Comparison of Residential Markets

Comparison of Residential Property Prices in Selected Countries and Cities

Lending to Enterprises in Europe........................... 9

Housing Development Intensity....................... 13

Average Transaction Price of a New Dwelling in Selected Countries....... 17

Interest Premiums........ 10

Housing Stock.............. 15

Loan-to-Value.............. 10

Average Transaction Price of a New Dwelling in Selected Cities.............. 19

Pre-sales Requirements....11 Debt-Service Coverage Ratio............................ 11


Affordability of Own Housing....................... 21






Mortgage Markets in Europe

Annex: Comments on Residential Markets




Property Index Overview of European Residential Markets


Introduction We are pleased to present to you the fourth edition of Property Index, Overview of European Residential Markets. Property Index is a comparative report regarding residential markets and housing across Europe. It analyses factors influencing the development of residential markets and compares residential property prices in selected (not only) European countries and cities. Starting this year, we have slightly changed the structure of the report. Each year we will choose a specialised topic to focus on. This years’ issue covers residential real estate financing – residential development projects. Our goal is to provide you with European residential market data. How do Europeans live, and how much does it cost them?

The prices in the selected countries and their major cities differ significantly as a result of historical development and various factors affecting the volume of supply and demand. Property Index was prepared by a proven international and cross-functional team of Deloitte professionals in the development, mortgage and real estate markets. This publication has been prepared using data collected by individual Deloitte offices in selected countries. Property Index capitalises on Deloitte’s extensive knowledge of the real estate and development industry, enabling us to provide you with independent and credible information. We hope you will find this fourth issue of the publication of interest for your business.

As in the previous year, we especially focused our attention on: •• Austria (AT); •• Belgium (BE); •• Czech Republic (CZ); •• Denmark (DK); •• France (FR); •• Germany (DE); •• Hungary (HU); •• Ireland (IE); •• Israel (IL); •• Italy (IT); •• Netherlands (NL); •• Poland (PL); •• Portugal (PT); •• Russia (RU); •• Spain (ES); and •• United Kingdom (UK). In addition, this year we added data regarding: •• Sweden (SW).

Property Index Overview of European Residential Markets


Economic Development in Europe GDP growth in Europe remained relatively slow in 2014. Low investment stands against a pick-up in demand and growth acceleration. The fall in crude oil prices could, however, provide a boost to economic growth. Decreasing commodity and oil prices are shifting wealth from commodity-exporting countries to commodityimporting ones. The falling energy prices have had a particularly adverse effect on Russia. In 2014, the Russian GDP rose by 0.6%, which was the lowest since 2009 financial crisis. The ruble