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2/7/07

This is Money: Poland leads property boom

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Poland leads property boom

The European housing market shrugged off forecasts of a slowdown in 2006, with solid house price performance recorded across the continent, according to a new report.The Royal Institution of Chartered Surveyors (Rics) said the UK outperformed the other 'big four' Euro-zone states but that the highest annual inflation was seen in Scandinavia and Central and Eastern Europe.

Annual house price inflation dropped to 7% in France (12% in 2005), fell back to 4% in Italy (5% in 2005), while the market remained stagnant in Germany. Prices in Spain rose 10% compared to 15% in 2005 while values in Portugal actually fell slighty after climbing only 2% in 2005. Scandinavia continued to show impressive house price inflation, recorded at around 22% in Denmark, 17% in Norway and 11% in Sweden. But they failed to catch up on growth in parts of Central and Eastern Europe. House prices in Poland rose by 33%, having already risen 28% in 2005.

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