Residential Real Estate - Southern Europe

Southern Europe

The Residential Real Estate market market in Southern Europe is projected to reach a value of €29.64tn by 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.28%, resulting in a market volume of €33.18tn by 2029.
In global comparison, China is expected to generate the highest value in the Real Estate sector, reaching €103.6tn by 2024.
In Spain, the residential real estate market is experiencing a surge in demand due to an increase in foreign investment.

Key regions: Europe, Brazil, France, Asia, United States

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Residential Real Estate market in Southern Europe has been experiencing significant developments and trends in recent years. Customer preferences in the market have been shifting towards more modern and sustainable housing options. Buyers are increasingly looking for properties that are energy-efficient, equipped with smart home technology, and located in eco-friendly neighborhoods. This change in preference is driven by a growing awareness of environmental issues and a desire for more comfortable and convenient living spaces. Additionally, there is a strong demand for properties with outdoor spaces such as gardens or balconies, as people prioritize access to fresh air and greenery. Trends in the market indicate a steady increase in property prices across Southern Europe. This can be attributed to several factors, including a shortage of supply, increased demand from both local and international buyers, and low interest rates. The limited supply of housing, particularly in popular urban areas, has led to a competitive market where prices are driven up. Furthermore, the region has seen an influx of foreign investors seeking to capitalize on the relatively low property prices compared to other European countries. Local special circumstances also play a role in shaping the Residential Real Estate market in Southern Europe. For example, countries like Spain and Portugal have implemented attractive residency programs for foreign investors, which has stimulated demand for high-end properties. Additionally, some regions in Southern Europe have a strong tourism industry, leading to a demand for vacation homes and rental properties. This has created opportunities for property owners to generate income through short-term rentals. Underlying macroeconomic factors have also contributed to the development of the Residential Real Estate market in Southern Europe. Economic growth, low interest rates, and favorable mortgage conditions have made it easier for individuals to purchase properties. Furthermore, the recovery of the European economy following the financial crisis has increased consumer confidence and investment in the real estate sector. In conclusion, the Residential Real Estate market in Southern Europe is experiencing a shift in customer preferences towards modern and sustainable housing options. Property prices are on the rise due to limited supply, increased demand, and favorable economic conditions. Local special circumstances, such as residency programs and tourism, also play a role in shaping the market. Overall, the market is driven by a combination of factors including customer preferences, trends, local circumstances, and macroeconomic factors.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are considered at a country-specific level.