Real Estate - Eastern Europe | Statista Market Forecast

In Eastern Europe, the Real Estate market market is expected to reach a value of US$11.91tn in 2024.
The market is largely dominated by Residential Real Estate, projected to have a market volume of US$9.22tn in the same year.
It is anticipated that the market will experience a steady annual growth rate of 5.16% from 2024 to 2029, resulting in a market volume of US$15.31tn by 2029.
When compared globally, United States is forecasted to generate the highest value in the Real Estate market sector, with a projected value of US$132.0tn in 2024.
Due to a rapidly growing economy and increasing foreign investment, the real estate market in Eastern Europe, particularly in countries like Poland, is experiencing a surge in demand and property prices.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Eastern Europe is experiencing significant growth and development in recent years. Customer preferences, along with local special circumstances and underlying macroeconomic factors, have contributed to the trends in this market. Customer preferences in Eastern Europe have shifted towards real estate investment due to several factors. Firstly, the region offers relatively affordable property prices compared to other parts of Europe. This affordability has attracted both local and international investors looking for opportunities to enter the market. Additionally, Eastern Europe is known for its rich cultural heritage and picturesque landscapes, making it an attractive destination for those seeking holiday homes or second residences. Trends in the market indicate a growing demand for residential properties in Eastern Europe. The region has witnessed an increase in urbanization, with more people moving to cities for better job opportunities and improved living standards. This has led to a surge in demand for apartments and houses in urban areas. Additionally, the rise of remote work and digital nomadism has also contributed to the demand for properties in Eastern Europe, as individuals seek affordable and well-connected locations to work and live. Local special circumstances in Eastern Europe have further fueled the growth of the Real Estate market. Many countries in the region have implemented favorable policies and incentives to attract foreign investors. These include tax benefits, residency programs, and simplified procedures for property acquisition. Such initiatives have encouraged both individuals and businesses to invest in the Eastern European real estate market, leading to increased construction activities and property development. Underlying macroeconomic factors have also played a significant role in the development of the Real Estate market in Eastern Europe. The region has experienced stable economic growth in recent years, with increasing GDP and improving business environments. This has boosted consumer confidence and purchasing power, driving the demand for real estate. Additionally, low interest rates and easy access to financing have made it more feasible for individuals and businesses to invest in properties, further stimulating the market. In conclusion, the Real Estate market in Eastern Europe is witnessing significant growth and development due to customer preferences, local special circumstances, and underlying macroeconomic factors. The affordability of properties, along with the region's cultural heritage and picturesque landscapes, has attracted both local and international investors. The growing demand for residential properties, fueled by urbanization and remote work trends, has further contributed to the market's expansion. Favorable policies and incentives, coupled with stable economic growth and low interest rates, have made Eastern Europe an attractive destination for real estate investment.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Eastern Europe

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