Europe
Europe’s emerging middle classes continue to
drive demand for high-quality residential property,
despite the current turmoil in the market
fter a period of considerable investment housing supply and demand will most definitely have to
The island of Hvar,
A
in property, and rapidly rising house be brought back into alignment.
on Croatia’s Dalmatian
coast, is increasingly
prices in a number of countries, Europe’s
attracting the
housing market has slowed down a Second homes international yachting
considerable amount in the last 12 Long-term indicators suggest that there will be
community.
months. As global credit conditions tighten, a number sustained demand for residential property in CEE
of European banks have also reported exposure to (Central and Eastern Europe), specifically Croatia and
the US sub-prime market, and consequently credit Montenegro. As wealth levels rise, households are
availability has dropped. As a result the demand for seeking better quality homes across the region. Areas
new property has decreased over the course of the last benefitting from attractive coastlines have also seen
few months. growth in the second home market. n
As a result much of Europe’s recently built housing
stock remains on the market, particularly in areas where
large amounts of new property has recently been built.
This only adds to the downward pressure on already
“There has been an
falling house prices.
Having seen their housing markets boom
considerably in the last five years, Ireland and Spain
increased demand for
have been the worst hit European countries, and in
order for growth to pick up again, the imbalance in high-quality housing”
savills global residential review 9
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