Residential Property Markets in CESEE EU Member States

Focus on European Economic Integration Q1/12

23 Pages Posted: 4 Aug 2013

See all articles by Antje Hildebrandt

Antje Hildebrandt

Bank of Finland - Institute for Economies in Transition (BOFIT)

Reiner Martin

Joint Vienna Insitute; European Central Bank (ECB)

Katharina Steiner

Oesterreichsiche Nationalbank (OeNB)

Karin Wagner

Oesterreichische Nationalbank

Date Written: February 1, 2012


This paper provides an overview of residential property market developments in ten Central, Eastern and Southeastern European (CESEE) EU Member States over the last 10 to 15 years, featuring price developments, housing conditions, affordability, housing financing and policy measures targeting residential property markets. The descriptive cross-country approach particularly focuses on the period of the economic and financial crisis by capturing the recent boom and bust of residential property prices across the whole region. We observe that high levels of home ownership and low costs of external housing financing were related to rising residential property prices. Besides the small size of the rental market, rising demand for affordable good-quality housing suggests that price developments during the forthcoming catching-up of residential property markets are likely to be dynamic. In this respect, policy action in different areas should increasingly attempt to keep a lid on housing market developments in CESEE.

Keywords: residential property market, housing finance, regulation of housing markets, CESEE countries

JEL Classification: E3, F36, P2, P5, R21, R31

Suggested Citation

Hildebrandt, Antje and Martin, Reiner and Steiner, Katharina and Wagner, Karin, Residential Property Markets in CESEE EU Member States (February 1, 2012). Focus on European Economic Integration Q1/12, Available at SSRN:

Antje Hildebrandt

Bank of Finland - Institute for Economies in Transition (BOFIT) ( email )

Helsinki 00101

Reiner Martin

Joint Vienna Insitute ( email )

Mariahilferstrasse 97
Wien, A-1090

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314

Katharina Steiner (Contact Author)

Oesterreichsiche Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna, A-1011

Karin Wagner

Oesterreichische Nationalbank ( email )

Otto-Wagner Platz 3
POB 61
Vienna 1011

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