Europe’s Housing Markets Bullish in 2006, Reports Royal Institute of Chartered Surveyors

Europe showed significant house-price increases throughout last year, even given a rise in interest rates, according to the Royal Institute of Chartered Surveyors (RICS) European Housing Review 2007. The report shows that the housing markets of Europe across the board were booming throughout last year. Europe avoided the slow-down experienced by the United States’ real estate market and remained highly buoyant even after the rate rises by the European Central Bank (ECB). Many European property investors are enjoying capital growth in double figures.

The respected RICS review goes on to report that the interest rate rise of 1.5% in the 2005 to 2006 period also failed to dampen the European mortgage lending markets. Eight out of the 12 eurozone countries saw mortgage lending rise by double digits during 2006. The Institute’s chief economist states that rising employment and income levels have helped cushion the blow of rising interest rates and that the forecast for 2007 is positive, given that most of the eurozone countries started the year on firm footing economically.

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