House prices in Europe may be on the verge of falling as the economic environment worsens and the commercial real estate sector is also at risk, the European Systemic Risk Board (ESRB), the EU's financial risk watchdog, said on Thursday. reported Reuters, informed BNR.

"The real estate cycle in several EU countries may be reaching a tipping point," the ESSR said in a statement.

"Transaction data and forecast household survey responses showing a decline in intentions to buy or build a home suggest that prices are increasingly likely to decline in the near term."

The European Systemic Risk Board added that a correction in the commercial real estate market could trigger investor losses, increase credit risk for bank and non-bank lenders and cause collateral values ​​to fall.

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