I was reading an article recently which reviewed a recently published S&P report. It indicated that 3 countries are set to led the price growth in property: Ireland, Portugal, and the Netherlands.
It appears the price growth in these countries is as a result of a shortage in supply.
The report predicts that the top 3 countries will continue to see growth in property prices until at least 2020. For the coming year it predicts growth of 8.5% in both Portugal and Ireland with the Netherlands close behind.
In the following year it expects Portugal to lead the growth with Ireland close behind. The report predicts that in the UK prices will suffer from Brexit factors. Such as reduced buy to let activity resulting from the stamp duty surcharge on additional homes and an unfavourable tax system for landlords.
The report stresses that the Brexit is going to be a key factor. What about other countries: Well despite a booming economy, the report forecasts that a slowdown in demand in Germany could result in a slowing in price growth.
In Italy the gap between supply and demand should close gradually. This will result in a further reduction in selling time and price discounts and, ultimately an increase in house prices.
In the Netherlands supply shortages and a rapid pace of economic growth will continue to fuel a strong rise in housing. This is similar for Portugal where strong economic growth, foreign demand, and lack of supply will contribute to price increases.
Strong economic conditions will also benefit the housing market in Spain and keep sales volumes high, helping to reduce the stock of unsold homes, according to the report, and in Switzerland a stronger economy and low interest rates are expected to support market activity.
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