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2021/08/03 / Erste Group Research

Dearer housing faces new green challenges

Housing markets face own bottlenecks and challenges

House prices in several CEE countries have risen briskly over the past decade, denting their affordability to some extent. Demand-supply mismatches persist and on top of these challenges, the housing market faces a new and ambitious green policy initiative – the Renovation Wave for Europe.

There are several steps countries could take to improve some of the present bottlenecks - including rental markets development, adjusting the tax setup or addressing building permits and red tape issues.

Making housing more energy efficient, sustainable and dignified should be a key part of the reform agenda.Renovation of both private and public buildings is a key initiative needed to meet the EU’s 2030 emission reduction target.

It has also been identified as a flagship area in the Union’s Recovery and Resilience Facility and the EU has an ambitious plan known as the Renovation Wave for Europe.
However, it will require vast investments and also public support, as the measures come with non-negligible short-term costs. Thus, compensation policies and state support for lower-income households are of vital importance. The challenge of greener housing proves admirable, though worth undertaking cautiously.

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General information

AuthorErste Group Research
Product nameCEE Economies Special Report
Topic in focusMacro/ Fixed income
Economy in focusCEE, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia
Currency in focusCroatian Kuna, Czech Koruna, Euro, Hungarian Forint, Polish Zloty, Romanian Leu
Sector in focus-


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