Scandinavian countries experienced positive housing growth in 2009, as Europe’s markets begin a slow recovery.

House prices in Europe are showing signs of recovery according to the latest European House Review from RICS, with low interest rates and reviving economies helping to bolster the market.

RICS – the Royal Institute of Chartered Surveyors – launched its latest Review in Brussels where it said that a significant number of European housing markets were starting to perk up in 2009, and a continued revival could be expected in 2010.

Despite the recession continuing a strong-hold on most of the world’s economies, some countries across Europe experience sharp price rises. Norway, Finland and Sweden’s house prices rose by 12%, 8% and 7% respectively. RICS said that prices in countries which may have seen marginal falls for the year such as Germany and France are starting to stabilise and beginning to see small growth.

However, vulnerable economies such as Ireland, Spain and Greece are amongst the worst performing markets of 2009 and experienced house price declines of between 27% and 53% for the year. RICS said that together with the Baltic States, these countries “form an unlucky horseshoe around the edges of Europe.”

“Huge problems remain unfortunately,” commented Professor Michael Ball who wrote the report.

“Housing markets around the fringe of Europe are still dragging down economies in a vicious circle and all European housing markets continue to face credit constraints and great uncertainty.”

Last month the Nationwide Building Society said that UK house prices had fallen for the first time in 10 months in February, blaming the poor weather which may have put off potential buyers. However, analysts are not taking this news too seriously as the upward trend in house prices continue to gain momentum.