Housing prices in the EU are rising again: where will the biggest increases be seen in 2025?

In the second quarter of 2025, housing prices in the EU rose again, with Portugal, Bulgaria, and Hungary leading the way. Find out how prices have changed in different EU countries and what influences the real estate market

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In the second quarter of 2025, housing in the European Union rose in price again. According to Eurostat, the housing price index rose by 5.1% in the eurozone and by 5.4% in the EU as a whole compared to the same period last year. This indicates a recovery in the real estate market after several quarters of relative stability.

The EU housing market continues to grow: latest data

Compared to the first quarter of 2025, housing prices rose by another 1.7% in the eurozone and 1.6% in the EU. This trend indicates a gradual but steady increase in demand for housing, both among local residents and investors who view real estate as a safe asset in times of economic uncertainty.

Most EU countries are seeing a positive trend, with demand for housing exceeding supply, especially in large cities and tourist regions. At the same time, construction costs continue to rise due to higher energy and building material prices.

Read also: How much of your salary does rent eat up – ranking of European cities

Where housing prices have risen the most

Among EU member states for which data is available, 25 countries showed annual growth in housing prices, while only one country recorded a decline.

The highest price increases were observed in:

● Portugal — +17.2%

● Bulgaria — +15.5%

● Hungary — +15.1%

The top ten also included Croatia (+13.2%), Spain (+12.8%), Slovakia (+11.3%), the Czech Republic (+10.5%), the Netherlands (+9.5%), Lithuania (+8.8%), and Ireland (+7.7%).

In most of these countries, the market is influenced by several factors at once: growth in tourism, investment flows into real estate, and increased demand among migrants and freelancers who choose the EU for long-term residence.

Where prices fell

The only country where housing prices fell was Finland, where prices dropped by 1.3%. Experts attribute this to a decline in demand for housing in the northern regions of the country and moderate economic activity after the pandemic period.

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Quarterly changes

Compared to the first quarter of 2025, prices fell in only two countries: France (-0.2%) and Belgium (-0.1%). In the rest of the EU member states, housing prices continued to rise, most notably in Portugal (+4.7%), Luxembourg (+4.5%), and Croatia (+4.4%).

These figures confirm that demand for housing remains high in regions with a developed tourism sector and a stable economy, where investors are actively buying both residential and commercial real estate.

What affects prices

Several factors influence price growth:

● limited supply of new properties due to slow construction rates;

● rising rents, which encourage people to buy their own homes;

● inflationary processes, which force investors to invest in stable assets;

● the tourist appeal of certain EU countries, which increases demand for apartments and short-term rentals.

Analysts note that although growth rates remain moderate, the EU real estate market is showing signs of a sustained recovery, and housing prices are likely to continue to rise in the second half of the year.

Tip: If you are planning a trip to the EU, don't forget about medical insurance — it is mandatory for traveling abroad. You can take out insurance quickly and conveniently on the Visit Ukraine website — the policy is valid in all EU countries and covers emergency medical care, treatment, hospitalization, and transportation to the hospital if necessary.

We remind you! Real estate prices in Europe vary tenfold — from luxury apartments in Luxembourg and Paris to affordable options in Albania and Greece. Read about which cities have the most expensive apartments and where you can buy real estate at the lowest price in our previous article.

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