MORTGAGE LENDING MARKET IN EUROPE: DYNAMICS AND FEATURES

Abstract

The housing market is an important part of any country's economy. The article analyses the main trends in the development of the mortgage lending market in Europe: general dynamics, development of individual segments, lending volumes, interest rates, construction volumes, resource prices, etc. The purpose of this article is to analyse current trends in the development of the housing market. Graphical and statistical analysis methods are used to visualise the trends in investment in residential construction in Europe in 2020-2022, to identify the main external and internal factors behind the market's decline, and to outline development prospects for the coming years. practical implications. Practical implications. The housing investment market is under the influence of new external destabilising factors (pandemic, military aggression), as well as the pressure of factors such as the economic crisis, widespread digitalisation, the fight against black markets, etc. The results of the analysis have identified the main factors currently affecting the European property market: the aftermath of the invasion of Ukraine, a sharp rise in energy prices, rising inflation and interest rates, a slowdown in economic activity and political uncertainty at global, regional and national level. In general, the development of the housing investment market is characterised by the following trends: high interest rates on mortgage loans; tightening of financing conditions and bank standards, reducing the availability of mortgage loans; slowdown in economic growth and rapid inflation; higher prices for energy and building materials, construction costs and, as a result, an increase in house prices; slowdown in bank lending to households buying houses. Value/originality. An urgent task of modern economic science and practice is the search for ways to attract additional financial resources, mechanisms to ease the financial burden of payments for investors, to reduce and distribute investment risks. It is these circumstances that have determined the growth of the housing investment market segment associated with such innovative forms of investment as digital lending and crowdfunding. According to forecasts, the global digital lending market will grow by up to 12% per year until 2026.