Eastern European Property Prices Still Falling

Experts believe that much Western European property has fallen to it’s lowest however Eastern European property prices are still set to fall further.

Researchers at Jones Lang LaSalle believe that residential property prices in Bulgaria and Romania in particular still have a way to fall- perhaps even up to a further 20%. Foreign property investors have already backed out of the investment market worldwide leading to a lack of demand. Couple with difficult and tight lending conditions, many who are looking to buy overseas property have found that it is increasingly difficult to get mortgages and loans.

Many believe that when it comes to Eastern European property – which is often seen as more risky than many Western European country properties – investors are taking a ‘wait and see’ attitude and are looking for a relaxing of lending conditions and indicators that the market has reached it’s lowest point before they start investing in property again.

In contrast, the property markets in the UK, Ireland and Spain are said to have reached their lowest point and many experts believe that these countries will start to see their property markets growing again, paving the way for the rest of Western Europe. Lending in these countries has loosened a little and confidence, particularly in the capital cities, is growing. However it is anticipated that a full property market recovery will take another two years.

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