This ranking was conducted in a study about economic evolutions of 16 European countries that had the greatest increasing growth in house price. The CBRE group conducted this study that aims to identify the fastest countries in Europe housing market (both in terms of amount of real estate investment and housing price changes). The CBRE group is an American real estate firm that works in the field of the commercial properties management, developing and remodeling the real estates, investment and construction. Based on this firm’s studies, although the high housing price has highly increased the costs pressure in England but this increasing has been lower than Turkey, Iceland and Austria in the past 5 years and it has stood in fourth place. Accordingly, the housing price in Turkey has doubled in the past 5 years and it has stood in first place. This country also has had the 18 percent growth in house price in 2015 that it’s highest growth in house price over the last year in the world. It is interesting that the first 4 countries except Turkey in this list stand in the noncritical region of Europe. The “Telegraph” journal has examined the reason of increasing the price in these 5 countries.
Turkey: although this country could not still join to Europe Union but it has been studied in competition of house price growth among 16 European countries. Since 2011 this country has suffered great stresses because of cross-border neighbor unsafe conditions, Syria and now it also is at the heart of immigration crisis to Europe but these conditions has still failed to reduce the growth of house price in this country and it has reached to first place in this ranking by total of 91.3 percent growth in house price in the past 5 years.
The Turkey’s economic growth rate as well as low per capita income show that the Turkey’s economy is among newfound economies in the world. Young people are also trying to invest in housing. It is interesting that there is no evidence in Turkey’s housing bubble to disappear and because of faster increasing in house price than other countries, the people are paying off their loans regularly. Also, due to lending companies’ expansion and increasing the banking power of housing section in Turkey, the purchasing power has increased and the housing market is booming.
Iceland: this country has stood in the second place by 42.1 percent increasing in price in the past 5 years. After 2008 when Iceland’s banking system and housing market fell due to financial crisis, now this growth can show an improvement in this country’s economy conditions. The house price in Iceland is very various and the personal investors who are generally American, they purchase the expensive estates in the capital.
Austria: despite of little growth in economy, Austria has faced with 27.6 percent growth in house price in the past 5 years. One of the most important reasons of housing market booming in Austria is high quality of life. This year, Vienna was selected as the best city in the world to live and investment institutions and a large foreign investors have come to the city. Also Eastern European countries such as Russia and Ukraine choose this country to purchase a house because of secure political situations in Austria and having cultural similarity. We can say more than 40% of home buyers in Austria are foreigners.
England: this country that is known for expensive homes and social houses in global housing market, has stood in the fourth place by 8.26 percent increasing in house price in the past 5 years. Influx of foreign investors since 2011 has caused making rapid developments in the housing market that it is not consistent with incomes growth rate and now a lot of people think having dream of owning their home is too far. The house price ratio to annual income was 5.89 in the last month which is higher than when the recession was in England in 2008 but since 2015 the England government is trying to control this increasing in price by giving several loans. England withdrawal from Europe Union advocates believe that this will also reduce the house price.
Sweden: a country that the housing market has never stagnated even in economic crisis, there has been the 25.8 percent increasing in the past 5 years because of high home purchasing facilities and unlimited loans that are given to all applicants even investors. In this reason, in order to cool the housing market, the central bank has reduced the 140 years house purchasing loan to 105 years.