At a Glance - European residential markets - Q2 2022

The pivot in ecb monetary policy is slowing down credit production and housing transactions. Prices are now near a leveling off point.

Despite the strong growth of the beginning of the year, we observe credit production and residential activity starting to slow down gradually because of the rise in financing costs. House prices rose by 9.9% in Europe and rents increased by +5.2% across the European markets we monitor. Investment volumes remain resilient. €45.5bn have been invested in the first 9 months of 2022 i.e. +15% regarding the 5-year average but -8% compared to last year. We expect residential markets across Europe to slowdown owing to the sharp increase in financing costs, the drop in affordability and the risk of overvaluation in some markets.