Rising housing prices worldwide (especially in Southern Europe)

Housing prices will continue to rise worldwide in the coming years, especially in Southern and Eastern European countries, where even greater growth is expected. Economic experts predict a significant global trend with an average annual increase of 9%, according to the latest research conducted by the German ifo Institute and the Swiss Institute of Economic Policy.

Real estate prices worldwide are expected to increase by an average of 9% per year over the next 10 years, according to a statement from the ifo Institute. Researcher Timo Vohner stated that "the rise in real estate prices is primarily driven by demand rather than supply factors."

Moreover, the increase in demand for housing in many regions of the world is driven by factors such as a higher standard of living, the desire for more living space, population growth, and the trend towards remote work, which also plays an important role.

“Supply factors, such as limited production capacity, rising prices for construction materials, and a shortage of land for building, are responsible for the increase in housing costs according to 27% of specialists,” says Vokhner.

Monetary policy, inflation, and government policies are mentioned by 12% of respondents as responsible for the rise in real estate prices.

It is expected that the growth of real estate prices will be below the average levels in Western Europe (6.4%) and North America (7.7%). However, the study indicates significantly higher growth rates in Southern and Eastern Europe (18.4% and 14.9%, respectively).

According to the survey, property prices are expected to increase "especially" in South and West Asia (25.1% and 22.4% respectively) and in Central America (24.4%).