The entire first half of last year house prices rose, but now the real estate market in Denmark significantly reduce them, reports the portal Global Property Guide. Because of weak economic growth coupled with problems in the banking sector, most of the housing market in Denmark have chosen a strategy expectations.
Related article: Information about GreeceIn the II quarter of 2010, residential property has risen by almost 3% in comparison with IV quarter of 2009. In III quarter average price per square meter in apartments fell by 1,4% and amounted to more than 18 thousand Danish crowns per square meter (About ? 2500). However, compared with 2009, prices rose by 6%.
The motion of the real estate market generally reflects the economic situation in the country. Denmark's GDP increased from 0,7% in I quarter of 2010 to 1,5% in II quarter. However, by the end of the year growth has slowed.
Problems in the banking sector of the country led to the fact that in 2010 the population was issued the lowest number of mortgage loans in 10 years. In February 2011 in Denmark, another bank went bankrupt - Amagerbanken. It was the eighth largest bank in terms of deposits and lending.
With the global financial crisis in 2008, 11 financial institutions in Denmark were financially incapacitated. Overall, however, the financial system in the country remains stable, says Central Bank of Denmark.