House prices and rents have soared in the EU since 2010. Will rising interest rates pull them back down?

The cost of buying a home in Europe has risen by 45% since 2010, according to European Commission research.
Rents have been going up in most European Union countries too, putting pressure on stretched family budgets.
Some experts warn that houses are overvalued and that the market could cool as a result of interest rate hikes.

House prices in the European Union have gone up far more steeply than the cost of renting a home in the past decade, according to a study of long-term real estate trends in the bloc.

The European Commission research shows that both rents and house prices in the EU have risen steadily since 2010. But the cost of buying a home has climbed by 45%, while rent increases have averaged a far lower 17%.

The market changed in 2015, when the price of owning a home started to rise much faster than the cost of renting one. That trend has continued since, and the gap has widened significantly in the past four years.

The European property market remained buoyant during the pandemic, fuelled by a long period of ultra-low interest rates and increased demand for bigger houses, as many of us were forced to spend more time at home.

Global increases in house prices

Prices rose outside Europe too, even though large parts of the world economy were in turmoil for the first year after COVID-19 emerged. House prices climbed in 2020 in three-quarters of the 60 countries included in the IMF’s Global House Price Index.

And online searches for homes reached record levels in many countries, including the United States, the IMF says.

BMH is activaly looking for new projects to help keep
People Living in a home they own.

Should You Buy or Build a Home?

Most homebuyers end up spending lots of time and energy either searching for or designing “the perfect home” before signing any contracts or laying down funds.

Location, price, market trends, property taxes, and the condition of the property are usually factored into a house hunt. Also, each buyer typically has a wish list that includes specific needs (the things the buyer has to have) and wants (the features the buyer would like but could do without if necessary).

While the home-buying process involves several important choices, one of the very first decisions buyers need to make is whether to shop for an existing home or build a new one.

BMH has over the years helped Home Owners Build their
Dream Home,
Take an existing Home and modernise it,

Location, location, location

The Factors of a “Good” Location

“Location, location, location” is a common mantra in real estate. And it’s good advice—except for one thing: Most people have no idea what it means.

KEY TAKEAWAYS

Location is key to valuable real estate.
Homes in cities that have little room for expansion tend to be more valuable than those in cities that have plenty of room.
Consider the accessibility, appearance, and amenities of a neighborhood as well as plans for development.
A lot’s proximity to things like busy roadways may make it less desirable for resale.
Acreage often trumps the quality of a house because land tends to increase in value.

Guide to property investment

Investing in property is an exciting journey, but full of pitfalls that even the most experienced buyers can fall in to if they aren’t careful.

Buy-to-let is the most common way to get started, but there are other ways to get involved, even if you have no deposit.

This guide will help you find your own property investment strategy.

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