Residential property in the euro area closed last year with a 4.1% year-on-year increase of prices, according to the official EU statistics agency Eurostat. Moreover, Lithuania (9.5%), Latvia (9%) and Malta (8.4%) recorded the highest growths among member countries of the single currency, according to the Eurostat. Spain, at the end of last year, remained close to the European average, since the growth of residential property prices here was by 4.4%, which was lower than the evolution of countries that have received financial aid of the EU: Ireland, Portugal (an increase of 7.6% in both cases), without taking into account data on the Greek real estate market.
The price of residential real estate in the European Union, on the other hand, increased slightly, i.e. to 4.7% in the fourth quarter of 2016 compared to the same period in 2015. In this case, the Czech Republic (11 %) and Hungary (9.7%), along with Lithuania, were the top three countries within the all EU-28, where prices rose more noticeably.
It is worth noting particularly the divergence in the evolution of residential property prices in the main European countries. While in Germany (6.7%) and the United Kingdom (5.7%) prices rose above the average index, in France (1.9%) and Italy (0.1%), after a set of negative data throughout the year, the cost of houses and apartments barely recovered. Spain, meanwhile, maintained its growth rate by an average of 4.4% at the end of last year.
On the other hand, the growth of residential real estate prices in Spain was also more moderate at the end of 2016 than in other countries that have received financial support from European Union funds. Despite the fact that, according to statistics agency Eurostat, no official figures are available for the Greek real estate market, the price of residential housing in Ireland and Portugal increased by 7.6%, respectively.