House prices in Europe: countries with the biggest increases
- Redação Mudei e Agora
- Oct 15
- 3 min read
Recent Eurostat data reported by Euronews shows that in the second quarter of 2025, house prices in Europe grew by an average of 5.4% year-over-year, with seven countries recording nominal increases exceeding 10%. Among them, Portugal leads with a 17.1% appreciation, followed by Bulgaria, Hungary, Croatia, Spain, Slovakia, and the Czech Republic.
This overview reveals that European real estate appreciation remains strong and heterogeneous, with marked regional disparities.
European Overview and Regional Disparities
Moderate growth in the European aggregate: the average increase of 5.4% indicates a sector that continues to appreciate, albeit less intensely than some “hot” markets.
Markets with outstanding performance:
• Portugal: +17.1% (the largest of the group) — reinforcing the strong appetite for real estate in the country, especially in coastal areas and growing inland cities.
• Bulgaria (15.5%), Hungary (15.1%), Croatia (13.2%), Spain (12.8%), Slovakia (11.3%), and the Czech Republic (10.5%): all with double-digit increases, highlighting local supply, tourism, and foreign investment pressures.
Markets with modest or even declining growth:
• France (+0.5%) and Sweden (+0.7%) were below average;
• Cyprus saw growth of only 1%;
• Finland recorded a decline of -1.3% year-over-year.
Large economies with subdued performance:
• Germany saw growth of +3.2%
• Italy: +3.9%
• Other markets – more saturated or with credit constraints – showed less dynamism.
Factors Fueling Disparities
Strength of Foreign Investment and Tourism: "Destination" markets such as Portugal, Spain, and Croatia attract international buyers and second-home buyers, encouraging higher valuations.
Local Housing Shortage: In regions where housing stock doesn't keep up with demand (whether due to slow licensing or a lack of land), prices soar.
Economic Growth and Wages: In Eastern European countries, faster economic gains allow for higher percentage real estate price increases.
Tax and Regulatory Policies: Incentives for acquisition, investment-friendly regimes, or golden visa schemes can inflate local demand.
Market Maturity Differences: Consolidated and expensive markets—Paris, London, Stockholm—tend to appreciate less because they have already incorporated value; less mature markets have more room for appreciation.
Implications for Investors and Agents
Catch-up Opportunity in Emerging Markets: Eastern or Southern EU countries still offer room for appreciation for buyers seeking more aggressive returns.
Greater risk of a local bubble: rapid appreciation requires caution regarding the sustainability of income, credit, and the balance between supply and demand.
Geographic diversification as a strategy: for real estate portfolios, distributing operations between quirky emerging markets and more stable markets can balance risk and return.
Monitoring credit and monetary policy: changes in interest rates or financing restrictions can curb the momentum of appreciation in these more volatile markets.
Focus on niche secondary markets: smaller cities or inland areas may offer less competition and lower absolute prices, with potential for marginal appreciation.
Conclusion
The European housing price outlook reinforces that the real estate market remains a driver of investment and appreciation, especially in countries where supply and demand are imbalanced. For a specialized blog, these data suggest fundamental reflections: where are the best investment targets? What is the risk of reversal? How to structure strategies that accommodate this heterogeneity?
Investors and industry players should pay attention not only to absolute growth, but also to the sustainable trajectory of target markets, the buyer profiles driving the increase, and local policies that could alter the balance.
Source: Euronews — “House prices across Europe: Which countries have the highest rises”