November 16, 2021
Real Estate

Institutional investment in European housing surges amid higher prices | Business| Economy and finance news from a German perspective | DW

A pandemic, an economic crisis of historic proportions and a seemingly endless upwards surge in the price of houses — it seems an unlikely combination.

Yet house prices in the EU increased by 5.5% last year, a rise almost as big in scale as the 6.2% collapse in GDP that the bloc’s pandemic-battered economy suffered.

Prices had been rising fast in Europe in the years before the pandemic but the health crisis has brought its own unique confluence of accelerants. Huge government stimulus packages have helped keep borrowing costs at historic lows while prospective buyers’ private savings have swelled amid stay-at-home orders.

On top of that, the pandemic has prompted both a major cultural shift towards remote working and a newfound appreciation among millions for the value of one’s own home. Demand for houses has soared, exceeding a sluggish supply.

Something else has been booming in…

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