Flat prices tripled in this European country

For more than a decade, Europe has experienced a rapid rise in real estate prices. In the first quarter of 2025, housing prices increased by an average of 5.7% year over year, while rents rose by 3.2%. Compared to the fourth quarter of 2024, purchase prices increased by 1.4%, while rental rates increased by 0.9%.

However, this is just the tip of the iceberg. According to Eurostat, house prices in the EU have increased by 57.9% and rents by 27.8% in the 15 years since 2010. However, in some countries, the growth has been even more impressive, ranging from +100% to over +250%.

Buying a home: where prices have tripled

Real estate prices are rising in most EU countries, but at very different paces. Of the 26 countries with available data, housing prices have risen more than rents in 21 of them. Particularly strong growth occurred in Central and Eastern Europe.

• Hungary: +260% since 2010;
• Estonia: +238%;
• Lithuania: +194%;
• Latvia: +154%;
• Czech Republic: +147%;
• Portugal: +130%;
• Bulgaria: +125%;
• Austria: +113%;
• Poland and Luxembourg: +102% each;
• Slovakia: +100%.

Thus, in many of these countries, housing prices have more than doubled, and in some cases even tripled.

An exception to the rule: why Italy has fallen in price

Italy is the only EU country where housing prices have fallen by 4% since 2010. This may be due to structural problems in the market, such as an abundance of old housing, population decline in some regions, and a difficult economic situation.

Amidst a general rise in prices across Europe, Italy has emerged as a "stable island" that could attract investors seeking relatively affordable properties.

Rental: growth that hurts your pocket

Unlike the purchase market, which has declined, rents have increased in nearly all EU countries, except Greece. The largest increase in rental rates occurred in Eastern Europe.

• Estonia: +220%;
• Lithuania: +184%;
• Hungary: +124%;
• Ireland: +115%.

Meanwhile, Greece is the only country where rents have decreased, by a rather significant 11%. Experts attribute this decline in demand to economic crises and changes in tourist behavior, which had previously stimulated the short-term rental market.

Why prices are rising: top reasons

Analysts identify several reasons for the record growth in housing prices:

1. Economic inequality between countries. In Eastern European countries such as Hungary, Estonia, and Lithuania, rising prices are partly due to rapid economic development and an influx of foreign investment in real estate.
2. Lack of supply. In many cities, the demand for housing exceeds the supply, especially in popular metropolitan areas such as Vienna, Lisbon, and Warsaw.
3. Inflation and rising construction costs. Rising prices for construction materials and labor make new projects more expensive, which is reflected in the final cost of housing.
4. Low interest rates in the past have also contributed to the increase in housing prices. Although mortgage rates are expected to rise in 2025, low rates in previous years have stimulated demand for housing, driving up prices.

Trends on the horizon

Eurostat does not predict a short-term decline in prices. In fact, it expects slow but steady growth. Meanwhile, many EU governments are revising tax policies, introducing restrictions on speculators, and launching affordable housing programs.

For potential buyers or renters, housing in Europe remains a valuable asset whose price is constantly rising, a trend worth considering.

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