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Press release on the results of the EEA-wide assessment by the European Systemic Risk Board of residential real estate sectors in the European Union, Iceland, Liechtenstein and Norway

The European Systemic Risk Board (ESRB) today published the results of the 2021 EEA-wide assessment of medium-term risks and vulnerabilities in residential real estate sectors of the European Union (EU) Member States, Iceland, Liechtenstein and Norway.

In 2019, the ESRB issued warnings to five countries (Czech Republic, France, Germany, Iceland and Norway) and recommendations to six countries (Belgium, Denmark, Finland, Luxembourg, Netherlands and Sweden). The recommendations set out concrete steps deemed necessary by the ESRB in the scope of macroprudential policy and other policies to address the risks and vulnerabilities identified at this level. They were addressed to the authorities of the countries that in 2016 received warnings against the build-up of systemic risks in residential real estate sectors and whose risk levels have remained unchanged or worsened.

In today’s released ESRB assessment, the risk associated with the residential real estate sectors remained high in five countries (Denmark, Luxembourg, Netherlands, Norway and Sweden), medium in 19 countries and low in the remaining countries subject to assessment. Following this assessment, the ESRB issued warnings to five countries (Bulgaria, Croatia, Hungary, Liechtenstein and Slovakia) and recommendations to two countries (Austria and Germany).

Portugal was assessed as medium risk and the macroprudential policy implemented by the Banco de Portugal was deemed to be fully appropriate and sufficient to mitigate the risks identified. 

The report on the assessment, the warnings and the recommendations are available on the ESRB website.