Rising inflation in the European Union is far from limited only to ordinary consumer goods. Housing prices are also increasingly affected. Real estate prices in the EU have risen at the fastest rate in eleven years.
House and apartment prices in the European Union rose by 9.2 percent year-on-year in the third quarter of last year, and by 8.8 percent in the euro area, according to current Eurostat data. This is the highest increase in real estate prices since the last economic crisis, which was also triggered by the bursting of the price bubble in the housing market.
Moreover, the growth rate of house and apartment prices is accelerating in both the EU and the euro area. While they grew by 5.8 percent in the last quarter of 2020, it was more than 7 percent in the second quarter of 2021. According to experts, this is the result of a confluence of extremely loose fiscal and monetary policies in individual countries, through which governments and central banks responded to the outbreak of the coronavirus pandemic.
Real estate prices rose the fastest in the Czech Republic, by 22 percent year-on-year. Quarter-on-quarter, house and apartment prices in the Czech Republic rose by 7.3 percent. Cyprus recorded the lowest year-on-year growth in real estate prices, at 2.2 percent.