·          The housing market in Europe has experienced remarkable dynamism since the pandemic, although monetary adjustments between 2021 and 2022 slowed the pace of growth in some areas. Despite this, sales remain significant, and prices have continued to rise due to a shortage of supply. Between 2007 and early 2024, house prices have grown by 90% on average in the OECD, although adjusted for inflation this increase is reduced to 25%.

The Eurozone countries show diverse behaviors. Germany and the Netherlands stand out with strong increases, while in Italy prices are still below pre-crisis levels in 2007. In Spain, nominal prices reached levels close to the 2007 highs, although in real terms they are 25% below. This has caused second-hand housing to be the main driver of the market in Europe, representing nearly 90% of sales.

Lack of supply remains a challenge. Building permits for new homes have fallen across much of Europe’s economies, helping to keep pressure on prices. However, Spain has shown resilience in real prices, offering opportunities for both investors and buyers.