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EU Property Bubbles

Many nations in europe have had a property bubble, but only Ireland has officially had a bubble pop. Spain is currently in process of acknowledging their bubble pop, but many other nations in the eurozone appear to have had similar-looking housing price growth yet have not officially acknowledged their bubble price moves.

The different eurozone nations were split into two groups; states with property bubbles, and states without. Criteria for a bubble is property prices doubling within 10 years. The selection was relatively easy in most cases - the only borderline case was Italy, where they had property prices rise "only" 66% over 8 years. There are two notable cases: Belgium, where prices have gone up 243% since 1998 and are still at that lofty level, and France, where prices have risen 263%, and no correction has yet occurred.

The data comes from the ECB, but is collected by each member nation. They are index values, with the 100 value set generally to one of the years between 2007-2008. Some of these series update annually, some monthly, and some quarterly. It is a mix of data; some use only existing homes, others use existing and new homes. Data availablity varies between nations; every attempt was made to select the best series. To provide a "bubble baseline", the US Case Shiller 10-city index has been normalized with early 2006=100 and added to each graph.

bubbles-rpp chart

nobubbles-rpp chart