Essay - Changes in Real Estate Prices in the European Union Due...

CHANGES IN REAL ESTATE PRICES ***** THE EUROPEAN UNION DUE TO ACCESSION COUNTRIES OPENING OF REAL ***** MARKETS

Abstract

This work in research reviews an extensive amount of literature ***** order to understand what impacts have been witnessed ***** housing prices in the European Union due to entering of the latest accession countries into ***** EU. Housing prices are on the rise of a signific*****nt nature however, within *****e year of a country's ***** ***** the ***** ***** ***** prices generally stabilize. Presently, the demand for housing in the EU accession countries exceeds the supply.

***** IN ***** ESTATE PRICES IN THE ***** UNION ***** TO ***** COUNTRIES ***** OF REAL ESTATE MARKETS

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The objective of this work is to research the changes in real estate ***** in the European Union due to accession of ***** such as Poland, Spain and Romania ***** the changes in real estate prices in these countries resulting from their accession in***** the *****.

Introduction

***** report entitled: "Real Estate Boom Shatters East European's Dreams" states that real estate prices have: "...*****n as much as 100 percent ***** the eight *****mer communist ***** that joined in the EU ***** 2004, driven by buyers from Western Europe. Many local residents with less than a quarter the buying power of ***** neighbors, have been locked out ***** the market, adding to frustration ***** EU membership and eroding support for budget cuts needed to adopt the euro." (Gomez, 2006) The price surge is stated to have "triggered investors concerns ***** the bubble will burst as interest rates rise, saddling banks with bad loans. The boom has ***** fueled ***** floating-rate mortgages as low as 4.4 percent, but now central banks are lifting ***** across the region." (Gomez, *****)

Background of ***** Study

***** Economic and Social Department of the EU in its FAO Corporate Document Repository *****: "*****an Accession ***** Land Tenure Data in Central and Eastern Europe" states that: "A market economy requires that *****s should normally be set by market forces rather ***** by government. It implies ***** there ***** ***** private ownership of the means of production, ***** individuals and companies deciding how ***** are to be used, ***** a legal system that enables property rights to be enforced. There must ***** competitive markets and well-developed private capital ***** in which finance can be raised and collateral taken in the event ***** default. A functioning market economy requires an efficient property market in which real estate can ***** purchased, sold, rented ***** ***** as collateral for loans. This includes agricultural land and natural resources ***** well as residential, commercial ***** industrial land and buildings. Otherwise, there can be no free movement of labor or enterprises ***** ***** mobility ***** capital. Restrictions on the ***** or renting of real ***** limit the movement of people, businesses and investment." (FAO, 2006)

***** of the efficiency problems encountered in relation to rural land *****s

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Date of report

Efficiency problems

***** countries

2000-02

Lack ***** security of