Full Recovery Will Be Drawn Out Process in Europe

Despite positive signs, it will be a while before all Europe's housing markets return to full strength, with large disparities present between countries....

Despite positive signs, it will be a while before all Europe's housing markets return to full strength, with large disparities present between countries.

This is according to the latest report from the Royal Institution of Chartered Surveyors, which noted that although some markets are booming, a number of countries remain in dire straits.

Nordic countries as well as Germany, France and Belgium all experienced rises in residential house prices in 2010, the European Housing Review 2011 shows.

Conversely, Ireland, Hungary and Cyprus all experienced reductions while Spain, Greece and Portugal saw moderate falls as a result of their economic struggles. Indices suggest that prices were also down in the UK, Netherlands and Poland, while Italy and the Baltic States are recovering from their major crashes.

"Complete recovery will not occur until housing markets are fully functioning again; with plentiful mortgage finance, revived house building and extensive market turnover throughout all sectors. Unfortunately, at present the foundations for such a recovery are still not in place in many parts of Europe," Michael Ball, Professor of Urban and Property Economics at the University of Reading and author of the report, said.

- Friday 04 March 2011

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