Interest rates will put pressure on house prices in Europe for a long time

This is stated in the S&P report “European Housing Markets: A Sustained Correction Ahead.” According to analysts at Standard & Poor’s, home values ​​will hit rock bottom by the end of 2024. Rising interest rates in Europe will lead to a sustained correction in nominal house prices in most countries on the continent.

Even with the central bank resuming rate easing, a stronger rebound in house prices is unlikely once the correction ends. The decline will be significant: up to 12% in Germany and the UK, and on average above 8% in other countries by the end of 2024.

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