European housing price growth across EU countries in 2025

Housing prices in the European Union rose 5.5% in 2025, according to Eurostat data. Growth rates varied widely across member states, with several countries recording increases above 10%.

What drove the rise in 2025

Euronews cited improved financing conditions as a key factor behind the gains in 2025, particularly the stability of interest rates after volatility in 2023-2024. Michael Polzler, CEO of REMAX Europe, said the steadier rate environment encouraged buyers who had delayed home purchases to return to the market.

Biggest movers by country

Hungary led EU housing price growth in 2025, with a 21.2% increase. Kate Everett-Allen, head of European housing research at Knight Frank, said Hungary’s homebuyer subsidy programs in recent years helped stimulate demand for owner-occupied housing as well as real estate investment.

Other standout increases included Portugal (+18.9%), Croatia (+16.1%) and Spain (+12.9%). Everett-Allen argued that strong foreign investor demand is a common factor in these markets, supported by continued demand from lifestyle buyers, second-home purchasers and overseas investors, including remote workers and retirees, with activity particularly concentrated in coastal and urban areas.

Portugal: demand concentrated in key areas

In Portugal, price growth was concentrated in coastal and urban areas where demand was highest. Polzler pointed to supply constraints, especially in Lisbon, Porto and surrounding areas, along with government support measures, as drivers of the increase.

Portugal’s government introduced a state-backed guarantee program for young people buying their first home, allowing mortgages up to 100% of the home value. The guarantee equals 15% of the loan value, which Polzler said has provided a major boost to demand.

More markets above 10%

Beyond Hungary, Slovakia, Bulgaria, Latvia, Lithuania and Czechia also recorded housing price growth above 10% in 2025.

Regional momentum and macro context

Everett-Allen said Central Europe and Eastern Europe, together with the Iberian Peninsula (Spain and Portugal), have been standout markets over the past 12–18 months. She linked this performance to stronger GDP growth in those regions compared with the rest of Europe, alongside infrastructure investment and capital inflows, lifestyle-driven demand, and longer-term economic prospects.

Where prices fell and how major economies performed

Not all European countries saw price increases in 2025. Finland was the only country among 29 European markets to record a decline, with housing prices down 3.1%.

Among the four largest EU economies, Spain posted the strongest growth at +12.9%. Italy rose 4.1%, Germany increased 3%, and France recorded only 1% growth.

France and Germany: different headwinds

Polzler said the French property market is still recovering from the sharp correction in 2023 and 2024, when mortgage rates rose and inflation significantly affected demand.

Everett-Allen added that Germany’s housing market is more influenced by low interest rates, weak income growth and the prominence of the rental sector, alongside high legal costs associated with home ownership.