According to a recent study of the European real estate market conducted by one of the world's largest rating agencies, Standard & Poor's, high-interest rates will continue to have a long-term impact on housing prices.
It is projected that by the end of 2024, the cost of housing in most European countries will decrease by approximately 8%.
The primary factor influencing the real estate market is the rise in interest rates on mortgage loans, which leads to a decrease in demand and a decline in housing prices. Nevertheless, the demand for housing in Europe remains high.
Analysts predict that even after a reduction in interest rates, housing prices in regions with high mortgage costs will not recover quickly.
Standard & Poor's does not anticipate a complete collapse in housing prices; however, a significant reduction in property values is expected, particularly in Germany and the United Kingdom, where it may reach approximately 12%. In most other countries, a decrease of more than 8% is expected by the end of 2024.