Demand for real estate in the eurozone is likely to remain high, raising prices and raising questions about how affordable it will be for poorer households, according to the European Central Bank.
Following the closure of many businesses in the global economy due to the pandemic, household savings increased and some families, especially the wealthier ones, sought real estate as a place to invest money they could not afford anyway.
“While some transactions due to over-savings during the pandemic may have already taken place, the large stockpile of accumulated savings may boost demand for housing in the short term,” the ECB said in its financial statement.
“This suggests continued strong demand in the housing sector but also questions about whether housing is affordable for lower-income households, as expected growth in house prices was much stronger than expected household and general income growth.” prices “, the ECB notes.
The household savings ratio doubled at the start of the pandemic and remained marginally below 20% in the first half of the year, well above the 12% -13% recorded earlier.
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Source From: Capital
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