An analysis of the evolutions of real estate market and purchasing power within the European Union

Abstract

The paper analyzes the influence of the purchasing power on the evolution of the real estate market in the EU countries, based on the developments of GDP per capita, purchasing power parities, House Price Index and production in construction in period 2008-2013 in the EU countries. The research reveals that the evolution of GDP per capita significantly influences the evolution of House Price Index, and the price index at his turn influences the evolution of production in construction. Finally, is made a grouping of EU countries into four categories and are discussed the prospects of Real Estate market developments in the EU countries.