|Unit||EUR per m², NSA|
|Adjustments||Not Seasonally Adjusted|
Residential property prices, which have a significant effect on household spending and indebtedness, the mortgage market,investment development and ultimately also on financial and monetary stability in the medium and long term.
As regards monetary stability, the development of residential property prices has a significant impact on economic activity and on price changes overall. Growth in apartment prices is providing a boost to economic activity since investment in housing is on the rise and the wealth effect generated by increasing residential property prices is stimulating household consumption. That said, the intensity with which these effects are being felt varies between areas and depends on the extent to which houses and apartments are in private ownership.
From the view of financial stability, real estate is one of the main forms of security for loans. That is why a downturn in real estate prices together with a deterioration in the ability of households to make loan repayments could threaten the stability of the banking system and give rise to serious macroeconomic consequences.
• Data is to be collected on a quarterly basis and made accessible for up to 90 days after the reference period.
• When processing data, the recommended harmonised methodology is to be used for the qualitative adjustment of the collected data, including the use of appropriate weight schemes for ensuring the statistical representativeness of the collected data.
• Construct an overall indicator of residential property prices and a partial indicators according to the following three aspects:
1) New and existing residential property;
2) Residential property in urban and extra-urban areas;
3) Residential property broken down into houses and apartments.
Often a combination of sources are used in order to collect reliable data. The reliability of data on real estate prices is affected by other factors besides the variety of sources, for example:
• the non-uniformity of data with regard to its geographic aspects, in other words its coverage,
• insufficient and different structuring of data according to apartment type,
• differences in the way real estate is sold (for cash, or under a loan),
• the weight schemes used to ensure that the original data is representative,
• different collection periods, and so on.
The data will be updated quarterly, up to 60 day after the reporting quarter.