Denmark comes in at no.3 on a list of countries that have experienced the biggest drop in housing prices since 2007, after Ireland and Spain.
A new report by mortgage lender Realkredit Danmark shows that prices in eurozone countries have remained relatively stable over the past five years, and even risen in neighbouring Nordic countries, Norway, Sweden,and Finland.
Senior Realkredit economist Christian Hilligsøe Heinig said the figures show very clearly that the housing bubble in this country was far greater than in most other countries.
“Prices have fallen by around 20 per cent since they topped in 2007, the biggest drop in 70 years,” he said, adding that the housing market downturn has ‘without doubt’ had negative repercussions for economic growth. “Homeowners have seen a collective DKK640bn disappear into thin air, which continues to put a damper on growth, At least there’s growing recognition that an unstable housing market is expensive not only for homeowners, but for society and the financial sector too,” said the economist.
Ireland has the unfortunate honour of topping the list with an average price decrease of 45 per cent.