Experts across Eastern Europe are concerned about the possibility of a collapse in national housing markets after recording significant falls in rental and property prices in the region.
Across the globe, housing and rental prices are currently decreasing. In the United States, where the collapse of the real estate market led to the 2008 global financial crisis, prices have been falling. Meanwhile, in China, several high-profile bankruptcies have been linked to a drop in house prices. Similarly, in both Great Britain and Sweden a similar process has been noticed.
Romanian broadcaster Mediafax have therefore asked, is a similar trend taking place in Eastern Europe?
The news site Hungary Today has noted that after an increase during the last year and a half, rent prices in the country have stagnated, and in Budapest they have fallen. The Daily News Hungary has warned that by January this could lead to major problems. The main concern is based on the fact that with an increase in the cost of utility bills, more people will seek to sell their homes and fewer people will be inclined to buy new ones. In particular, those with energy inefficient homes could face problems.
Similar problems have been noted in Poland, where the influx of refugees from Ukraine has added an additional challenge to the market. The Warsaw Voice has pointed out that the state’s housing construction plan has largely failed and higher interest rates have caused a decline in sales. Experts have therefore been warning for some time about a potential collapse in the market.
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