Real estate crisis: The richest countries.

The European Union is facing a major crisis in the real estate sector, especially in new construction. Not only have construction materials significantly increased in price, disrupting the plans of construction companies, but loans have also risen to exorbitant levels due to the constant increase in interest rates, leading to fewer families deciding to invest in new housing.

The most affected countries are among the wealthiest. The number of new building permits in Germany has decreased by more than 27% in the first half of the year. In France, the number of permits has also dropped by 28% by July, and construction in the UK is expected to fall by more than 25% this year.

Sweden is experiencing the worst real estate downturn since the 1990s, with construction levels at less than a third of what is deemed necessary to meet demand, Bloomberg reports, citing B92. The market's decline is most pronounced in single-family homes and large housing projects. The largest German landlord, Vonovia, has indefinitely suspended all new construction this year. In Sweden, a key project for battery production for electric vehicles and reducing the region's dependence on supplies from China is struggling to attract enough workforce due to a lack of housing to accommodate them.

This situation, among other things, means that governments are not fulfilling their promises to voters. Sweden has a constitutional obligation to provide affordable housing, but the supply of rental housing has not met demand for decades, driving up home prices and forcing people to live as tenants in the black market.