Eurozone Real Estate Market Experiences Uneven Decline in House Prices: An Analysis of the Factors Behind the Differences

The eurozone real estate market is undergoing a transformation, with house prices declining by 1.1% last year for all countries using the common currency. This marks the first time since 2013 that prices have fallen, after nine years of steady increases. However, not all countries experienced this decline, as 13 nations saw housing prices continue to rise.

The decline in house prices was most pronounced in Germany and France, which are the two largest national markets. In Germany, prices fell by 7.1%, while Luxembourg saw a decline of over 14%. Other countries that experienced declines include Finland, France, Austria, and Slovakia. On the other hand, prices continued to rise in countries like the Netherlands, Latvia, Cyprus, Italy, Ireland, Belgium, and Spain.

The reasons for the varying trends in house prices across different countries can be attributed to factors such as mortgage markets’ structure