Market Trends of Europe Home Mortgage Finance Industry
Increased Number of Salaried Individuals is Driving the Market Growth
The increasing number of business-class or salaried individuals are now opting for housing mortgage loans owing to the realization that residential rental payments are equivalent to the EMIs is primarily driving the housing mortgage market in Europe. Furthermore, various schemes formed by developers or builders, and the government, such as late EMI payments and construction-linked plans, lead to market growth.
Increase in Demand for Housing Over the Years is Driving the Growth of the Market
The high demand for housing reflected the low-interest rate environment combined with changing preferences of consumers due to the COVID--19 pandemic. The European banks' strong capital and liquidity positions have enabled them to fulfill, to a great extent, the demand for housing, expanding their exposures toward mortgage loans. The supply of housing was unable to keep up with the demand due to a lack of housing investments in previous years, construction constraints, and supply-chain disruptions caused by the pandemic. This, in turn, resulted in a much high growth rate in house prices.
