Our European Residential Report has just been published.
Key findings indicate that:
- Housing transaction volume dropped by 17% in Q4 2023 vs Q4 2022 on a rolling year basis.
- The tenancy rate in Europe slightly increased over the last 10 years to reach 30.3% in 2020. Moreover, the private rental market is growing (+200bps) while the public rental market is on the decline (-40bps).
- We expect mortgage rates to continue to decline progressively in the next quarters given the potential ECB rate cuts of 75bps starting in June (-25bps). The decline in mortgage rates will boost households’ borrowing capacity in the coming months.
- Residential investment in Europe is strongly impacted by interest rate hikes. Investors continue to hold a wait-and-see attitude despite enthusiasm for the asset class.
To read the full report, click to download.
