Property prices could come under pressure in Europe

October 16, 2007

Property prices in central and eastern Europe could come under pressure, but there is no “bubble” in the region, Patrick Butler, chief financial officer of Raiffeisen Zentralbank (RZB), said on Monday.“In certain segments, there is the chance of certain market distortions, (but) I wouldn’t use the word bubble,” Butler told the Reuters Central European Investment Summit in Vienna.

Butler said the desire of people in the region to own property, particularly their own home, and the need for investment should not be underestimated.

The region had not seen the overbuilding experienced by some other countries and the only sector where there could be real pressure on prices was among holiday homes built to meet demand from British investors. Reuters Reports

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