Europe Housing Prices – Growth in 2025

Rising property prices across Europe marked the second quarter of 2025

In the second quarter of 2025, according to Euronews, a significant increase in property prices was recorded across Europe, confirming the seventh consecutive annual rise. The average growth in the European Union amounted to approximately 5.4% year-on-year, indicating a continuation of the market recovery trend following recent challenges.

The most notable increases were observed in Central, Eastern, and Southwestern Europe. Portugal (17.1%), Bulgaria (15.5%), and Hungary (15.1%) recorded the highest annual growth rates. Likewise, Croatia (13.2%), Spain (12.8%), Slovakia (11.3%), and the Czech Republic (10.5%) posted double-digit increases, confirming the broader European trend of rising demand and prices.

The main drivers behind this growth include a combination of limited supply, rising construction costs, relatively lower interest rates in certain segments, and continued strong demand for residential property. These factors indicate market pressures affecting all participants — from buyers to investors. For some, this means faster decision-making, while for others it presents an opportunity for growth, albeit with caution.

On the other hand, growth was not uniform across all countries: for example, Finland experienced a decline in property prices, highlighting how regional conditions and economic policies can affect market dynamics. Such variations confirm that the European property market remains uneven, depending on local regulatory frameworks, supply, and demand structures.

In conclusion, while the average EU growth of around 5% reflects a stable trend, double-digit increases in certain states signal stronger momentum and greater risk. Timely adaptation to local market conditions is key to success in the development and distribution of real estate in the current economic environment. More details are available in the article on Euronews.