Rising house prices around the world (and especially in Southern Europe)

Real estate prices will continue to rise worldwide in the coming years, especially in southern and eastern Europe. Economic experts are predicting a sharp global trend with an average annual increase of around 9%, according to the latest study by German institute ifo and the Swiss Institute for Economic Policy.

Real estate prices around the world are expected to rise at an average annual rate of 9% over the next 10 years, according to the ifo institute. According to researcher Timo Wochner, "rising real estate prices are mainly driven by demand rather than supply.

There are also other factors contributing to this increase in demand for housing in many parts of the world, such as higher living standards,''The desire for more space for housing, population growth, and the trend towards remote working also play an important role. These are all reasons cited by 37% of industry professionals surveyed when justifying high price increases.

"Supply factors such as limited production capacity, higher prices for building materials and a shortage of land for construction are responsible for the rising cost of homes, according to 27% of experts," says Wochner.

12% of survey respondents cite monetary policy, inflation and government policies as responsible for rising real estate prices.

The growth in real estate prices is expected to be below the global average in Western Europe (6.4%) and''North America (7.7%).

The survey, however, points to significantly higher growth rates in southern and eastern Europe (18.4% and 14.9% respectively).

According to the survey, real estate prices are expected to be "particularly" high in south and west Asia (25.1% and 22.4%, respectively) and Central America (24.4%).