Europe Condominiums and Apartments Market Size (2024 - 2029)

The Europe Condominiums and Apartments Market is experiencing sustainable growth despite challenges such as the Russia-Ukraine war and inflation, which have impacted the region's real economy and real estate sectors. The market's expansion is driven by increased demand for rental properties, although high energy prices and recession fears are expected to affect vacancies and rents. Regulatory changes have lessened the leverage of real estate companies compared to the pre-global financial crisis era, influencing investor demand. In Germany, housing prices continue to rise due to limited availability, while France's market shows signs of slowing due to rising interest rates and tighter lending standards. Belgium's housing market remains stable, with a strong belief in its resilience against significant price corrections.

Market Size of Europe Condominiums and Apartments Industry

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Europe Condominiums and Apartments Market - CAGR
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.50 %
Market Concentration Low

Major Players

Europe Condominiums and Apartments Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Condominiums & Apartments Market Analysis

The Europe Condominiums and Apartments Market is anticipated to register a CAGR of over 5.5% during the forecast period. The European market is facing many challenges due to the Russia-Ukraine war and inflation. However, the market is showing sustainable growth. The market is driven by increased demand for rental properties.

  • Europe is on the verge of a significant slowdown in the real economy and the underlying real estate markets. With real estate capital values already falling, 2023 could be an excellent time to buy for core investors who are still under-allocated into the sector. With inflation and rising interest rates, the real estate market is not looking promising for investors. The war in Ukraine has impacted Europe's market, and the real estate industry may deal with the economic and political fallout for the foreseeable future. While industry leaders believe Russia's invasion of Ukraine will have little direct impact on their property portfolios, the war's consequences are visible.
  • There is a widespread belief that high energy prices and a recession will cause vacancies and rents to fall. However, real estate companies are not as leveraged as they were before the global financial crisis, owing to regulatory changes over the last decade. Thus, a 5-10% inflation rate in some markets and the threat of stagflation may continue to dampen investor demand in 2023. Due to a disastrous "mini-budget" and a cost-of-living crisis, the British property market activity stalled in October 2022, and house price growth registered its slowest quarterly level since February 2020. The spike in mortgage rates in the aftermath of the Truss plan led to a sharp decline in housing activity. The real estate group Zoopla stated that it was "more pronounced in new buyer demand than sales agreed." Buyer demand fell by 44% Y-o-Y in October 2022, while sales volumes fell by 28% Y-o-Y but remained on par with the pre-pandemic period.
  • Due to a lack of available housing, Germany's housing prices continue to rise, albeit at a slower pace. Apartment prices increased by 5.84% Y-o-Y till Q1 2022, following increases of 7.68% in Q4 2021, 8.96% in Q3 2021, 11.68% in Q2 2021, and 9.59% in Q1 2021. Ultra-low borrowing costs, urbanization, healthy household finances, and strong economic growth have boosted the demand. Years of extremely low-interest rates have made it simple for households to upgrade to larger, more expensive homes and for first-time buyers to get on the property ladder. The migration crisis has added to the already high demand in recent years.
  • After a five-year boom, the French housing market is showing signs of slowing, with rising interest rates and tighter lending standards reducing sales demand. According to data from France's National Institute of Statistics and Economic Studies, second-hand property price growth slowed in Q2 2022, while real estate developers reported a sharp decline in demand for new housing in October 2022. In Belgium, in the medium term, the number of households is expected to rise over the next decade, supporting demand and, to some extent, prices. Belgians generally have a strong belief in the housing market's stability, which reduces the likelihood of a significant price correction. Even during the financial crisis, when house prices in several European countries plummeted, Belgian house prices experienced only a minor correction.

Europe Condominiums & Apartments Industry Segmentation

An apartment is a private residence in a building or house divided into several separate dwellings. A condominium (also known as a condo) is a large property complex made up of individual units, each of which is owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management. The report covers the complete background analysis of the European condominiums and apartments market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact.

The Europe Condominiums and Apartments Market is Segmented By Country (Germany, United Kingdom, France, and the Rest of Europe). The report offers market size and forecasts in value (USD billion) for all the above segments.

By Country
Germany
United Kingdom
France
Rest of Europe
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Europe Condominiums and Apartments Market Size Summary

The European condominiums and apartments market is experiencing a period of sustainable growth despite facing challenges such as the Russia-Ukraine war and inflation. The demand for rental properties is a significant driver of this market, even as the region grapples with economic and political uncertainties. The real estate sector is witnessing a slowdown, with falling capital values and rising interest rates impacting investor sentiment. However, regulatory changes have left real estate companies less leveraged than in the past, providing some resilience against the current economic headwinds. The market dynamics vary across countries, with Germany experiencing a rise in housing prices due to limited supply, while the UK faces challenges in meeting housing demands amid a cost-of-living crisis.

The issue of affordable housing remains a critical concern across Europe, with different countries adopting varied approaches to address the housing crisis. While some nations focus on renovating existing structures, others are launching new initiatives to enhance living conditions. The rising cost of living has led to increased rental prices, particularly for apartments, making Europe one of the most expensive regions for housing globally. The market is fragmented, with numerous local, regional, and global players vying for a share. The demand for multi-family residential real estate and affordable housing continues to drive market activity, prompting both existing and new players to invest in this segment to maintain their market position.

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Europe Condominiums and Apartments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic Scenario and Consumer Sentiment

    2. 1.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector

    4. 1.4 Insights into the Size of Real Estate Lending and Loan-to-value Trends

    5. 1.5 Insights into the Interest Rates for the General Economy and Real Estate Lending

    6. 1.6 Insights into the Rental Yields in the Residential Real Estate Sector

    7. 1.7 Insights into the Capital Market Penetration and REIT Presence in the Residential Real Estate Sector

    8. 1.8 Insights into the Support Provided by the Government and Public-Private Partnerships for Affordable Housing

    9. 1.9 Insights into the Tech and Start-ups Active in the Real Estate Sector (Broking, Social Media, Facility Management, and Property Management)

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Country

      1. 2.1.1 Germany

      2. 2.1.2 United Kingdom

      3. 2.1.3 France

      4. 2.1.4 Rest of Europe

Europe Condominiums and Apartments Market Size FAQs

The Europe Condominiums and Apartments Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Elm Group, Vonovia SE, Places for People Group Limited, Castellum AB and LEG Immobilien AG are the major companies operating in the Europe Condominiums and Apartments Market.

EUROPE CONDOMINIUMS AND APARTMENTS MARKET Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)