Euro Zone Housing Market Is Heating Up

The euro zone housing market is heating up, increasing the chances of a correction in both the residential and commercial segments, the European Central Bank said in a stability report. With families building up savings during pandemic and increasingly working from home, demand for property is on the rise, pushing house price growth to over 7%, its fastest rate since 2005. Construction cannot keep up with demand and the residential market is especially hot in countries such as Germany, France and the Netherlands. On a positive note, the ECB added that the risk of a surge in corporate bankruptcies, a major fear a year ago, has eased, even as some government support measures have now been removed.