Homes in Europe are increasingly being snapped up for large sums by major investors and investors. This emerges from a study by the Greens in the European Parliament.
Large investors purchased homes in the Netherlands worth 15 billion euros over the past ten years; across the entire EU, they now own homes worth over 1.7 trillion euros. The bought properties are then rented out at substantial profit margins, driving up house prices.
GreenLeft MEP Kim van Sparrentak earlier drafted a report on behalf of the European Parliament on how Europe can ensure more affordable housing. ”This broad study shows how large investors handle the scarce housing space.
Homes are becoming investment objects to make large profits from, rather than places to live. Instead of countering this, current EU rules actually facilitate this trend. The EU must recognize that it has a role in guaranteeing affordable housing as a fundamental right.”
The researchers mapped real estate transactions in various cities across Europe. They discovered that the buying up of homes is rapidly increasing. Large investors now own three times as much real estate in Europe as they did ten years ago. “We see that home and rental prices are already soaring, while the study shows that the real increase in buying up is still ongoing. We need clear rules for investors, as well as an occupancy obligation and a rent ceiling.”
According to the Greens, housing should be treated as a special asset class within the (tax-related) social taxonomy plans of the European Commission.