Europe and the 'unlucky horseshoe'

A significant number of European residential property markets are starting to recover with both sales and prices increasing, according to a new report the Royal Institution of Chartered Surveyors.

The worst performing markets of 2009 were Ireland, Spain, Greece, and most central and eastern European countries. The Baltic States were hit particularly hard with price falls ranging from 27% to 53% in 2009. Together, these countries form a geographic ‘unlucky horseshoe around the edges of Europe', according to reports author, Professor Michael Ball.

Over supply is likely to hold back recovery in some countries, most notably in Spain, Cyprus and Ireland where both unsold holiday homes and primary residences could bring these markets further problems, the report also points out.

According to Land Registry statistics, the number of property sale contracts deposited by non-Cypriots in 2009 was down 73% on the 2008 figure and down by 84% on the number deposited in 2007.

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