Major European cities to face downbeat home price growth in 2019

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Major European cities to face downbeat home price growth in 2019

Home price growth in major European cities likes of Berlin, Dublin, Madrid and Amsterdam has been expected to calm down this year after witnessing several years of rapid growth, a rating agency, Fitch Ratings' report published later on Wednesday, the 5th of June 2019, had unveiled.

Besides, the report had also added that home price growth was expected to drop in London and Stockholm, while Paris would likely to experience a relatively higher home price. According to Fitch Ratings’ Wednesday’s (June 5th) report, housing price outlook for major European cities would likely to lower, as there had been much reduced activities of the first-time buyers because of affordability and a tightened mortgage policy.

Besides, an increased availability of affordable short-term leases in Amsterdam and Madrid would unlikely to heighten demands from the investors. Aside from that, given the tumultuous political posture over European soil amid a likely no-deal Brexit, home prices in London and Dublin would likely to fall sharply, while Brexit chaos and a divided UK House of Common with more than ten candidates for PM May’s succession after Brexit had brought down PM May’s reign, had already begun to weigh on prices on both European cities.

Nonetheless, Dublin would likely to gain amid a no-deal Brexit, as more and more businesses including real-estates would be moving their assets from UK to Ireland in order to stay operational.