Brussels Property Prices Set to Rise According to European Commission Forecasts

The European Commission predicts a surge in real estate prices in Brussels and across the EU due to low housing supply. Stay ahead of the market trends.

The European Commission has forecasted a rise in real estate prices in the European Union, citing a structural shortage of housing in Member States. According to the spring economic forecasts, the EU real estate markets are expected to moderate in 2023, with varying regional trends, but prices are anticipated to increase once again in the near future. In the fourth quarter of 2023, housing prices in the eurozone were 1.2% lower than the previous year, while prices in the EU were 0.2% higher. Overall, house price changes in 2023 averaged -1.1% in the euro area and -0.3% in the EU.

Notable declines were observed in countries such as Germany, Sweden, Luxembourg, and Finland, while Croatia, Bulgaria, Lithuania, Poland, Portugal, and Slovenia saw growth rates exceeding 6%. Despite the increase in prices, housing transactions and new construction licenses in the EU were near their lowest levels in the past decade. However, there are signs of a recovery in building permits, although strict credit standards and low demand are expected to continue impacting real estate transactions and construction in the coming quarters.

The European Commission's forecast suggests that real estate prices in the EU are set to rise once again, driven by a shortage of housing and varying trends across different regions. The recovery in building permits indicates a potential uptick in construction activity, although challenges such as strict credit standards and low demand may persist in the near term.