The most buyer-friendly real estate market in Europe
Denmark has topped the ranking of European countries where it is most profitable to buy a home — despite being one of the most expensive nations in the EU in terms of overall cost of living. The country offers the most favorable income-to-real-estate price ratio for buyers.
According to a report by BestBrokers, the average price of a 100-square-meter apartment in Denmark is 114 net monthly salaries. For comparison, the same area would cost more than 150 salaries in Italy and more than 180 in Slovakia.
This figure reflects citizens' real purchasing power. The study, which covered 62 countries, took inflation, lending costs, and labor market stability into account.
Housing prices in Europe continue to grow
Despite the favorable picture in Denmark, the overall situation on the housing market in the EU remains tense. According to Eurostat, in the first quarter of 2025, housing prices in the EU increased by 5.7% compared to the same period in 2024. Rents also rose by 3.2%.
Most countries in Central and Eastern Europe are experiencing rapid price growth. In particular, apartments in Romania, Poland, and Hungary have risen in price by an average of 8-10% per year. Meanwhile, wages in these countries are growing more slowly, making real estate less affordable.
Why Denmark is ahead of the rest of Europe?
At first glance, it seems paradoxical that Denmark — a country where the total cost of living is 43% higher than the European average, according to Eurostat — has proven to be the most attractive for homeownership. However, several factors explain this:
- High average salary. Denmark ranks 7th in Europe in terms of income, which ensures high solvency of citizens.
- Market regulation. Mortgage programs in the country have fixed rates that protect buyers from market fluctuations.
- Stability. The real estate market does not show rapid fluctuations, which makes it possible to plan a home purchase for a long period of time.
"Housing affordability is not only about prices, but also about the ratio of income to expenses. The Danes have high purchasing power, which is why their situation compares favorably with the rest of the EU," BestBrokers emphasizes.
Which EU countries have the most expensive housing?
Switzerland, Slovakia, and the Czech Republic are at the bottom of the ranking. In these countries, citizens must spend over 180 net monthly salaries to purchase standard housing.
The situation in Switzerland is exacerbated by not only high prices, but also limited access to real estate for foreigners. Despite economic growth, apartment prices in the Czech Republic have almost doubled over the past five years.
This creates deep inequality between those who already own real estate and young people or newcomers who are forced to rent under unfavorable conditions.
What will housing prices be like by the end of 2025?
Analysts expect housing prices in Europe to increase by another 3-4% by the end of 2025, while rents may rise by 2%. This is due to limited supply, rising construction material costs, and pent-up demand.
In the Baltic countries, Poland, and Bulgaria, foreign interest in buying real estate is increasing domestic market pressure. Meanwhile, stabilization is expected in countries such as Spain and Portugal due to a decrease in tourist demand for housing.
"In the coming years, the determining factor will be not so much the price as access to mortgages. If central banks keep rates at a high level, demand will be restrained," said Markus Jensen, an analyst at Muno Real Estate investment platform.
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