The decade-long European residential bull run is coming to an end and the sector will remain unstable for most of 2023.

Catella Residential Investment Management’s latest Markets Overview report says that the wide gap in price expectations between buyers and sellers remains in place in many European locations, maintaining valuation uncertainty. At the same time, interest rate hikes continue to stall investors who rely on financing. By the end of 2022, transaction volumes had fallen sharply in numerous submarkets within the European residential real estate market. The manager expects the general conditions on the European transaction markets for residential real estate to remain tense for the rest of 2023.

According to Catella, the average purchase price for a condominium in Europe in the first quarter of 2023 was €5,235 per square metre. The current price range across the continent, stretches from €1,720 per square metre in Lahti, to €15,250 per square metre in