Housing prices in the EU have risen by nearly 65% over the past decade, far outpacing the growth in rent. In some countries, property prices have tripled or quadrupled, and the market has returned to growth after a brief downturn. Learn more about where housing prices are rising the fastest and what’s happening in the market in 2026

The real estate market in the European Union has undergone a dramatic transformation over the past decade. Housing prices are rising rapidly, outpacing household incomes and placing increasing pressure on buyers and renters.

After a brief downturn in 2023, the market returned to growth, and demand in major cities remains consistently high. Against this backdrop, the gap between housing price trends and rental trends has become a key trend in the European market.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

Are you planning to buy real estate abroad? Before concluding a deal, it is important to consider not only the price per square meter, but also tax liabilities, restrictions for foreigners, title checks, and additional costs. Visit World's real estate lawyers will help you analyze the property, assess legal risks, and accompany you at all stages of the transaction: from the initial consultation to the signing of the contract. Get professional support and confidence in every step.

How have housing prices and rents changed in the EU from 2010 to 2025?

Real estate market trends in the EU over the past 15 years show a clear gap between housing prices and rents. While both indicators moved relatively in sync in the early 2010s, the situation changed after 2015—housing began to rise in price much faster.

A particularly sharp spike occurred after 2020. The pandemic, cheap loans, and rising demand led to a market overheating in 2020–2022. In 2023, growth rates temporarily slowed, but prices began rising again starting in 2024.

Key indicators for the period 2015–2025:

- Housing prices in the EU rose by +64.9%

- Rent increased by +21.8%

- Housing prices rose faster than rent in most EU countries

- In 2025, the market returned to stable growth after a brief correction

The trend also holds on an annual basis: in the fourth quarter of 2025, housing prices rose by 5.5%, while rents increased by 3.2% compared to the same period in 2024.

Housing and rent price trends in the EU, Q1 2010 — Q4 2025. Source: Eurostat

In our previous article, we provided a ranking of the most expensive European capitals for buying a home in 2026.

Where housing prices are rising the fastest: leading countries in the EU

Despite the pan-European growth, the real estate market in the EU is developing unevenly. While prices rose by nearly 65% on average, some countries saw housing prices increase by multiples.

Prices rose the fastest in Central and Eastern European countries, as well as in destinations popular for investment and tourism. It is these markets that are currently shaping the new map of European real estate.

Leaders in housing price growth (2015–2025):

1. Hungary – +290%

2. Portugal – +180%

3. Lithuania – +168%

4. Bulgaria – +157%

In some countries, housing prices have more than doubled, indicating strong investment demand and a shortage of supply. At the same time, there are exceptions: for example, Finland became the only EU country where a decline in housing prices (-3%) was recorded during this period.

Another important trend is that in 25 EU countries, housing prices rose faster than rent. This confirms that the purchase market reacts more actively to changes in demand and investment flows.

Changes in housing prices and rent in EU countries, 2015–2025. Source: Eurostat

Housing Rents in the EU: Stable but Slower Growth

Unlike the purchase market, the rental segment in the EU is developing more predictably. Even during periods of downturn or overheating in the real estate market, rental rates do not show sharp fluctuations, rising gradually.

Over the past decade, rents have risen in all EU countries without exception. This indicates stable demand for housing, especially in major cities, where buying property is becoming increasingly less affordable.

Largest rent increases (2015–2025):

1. Hungary – +109%

2. Lithuania – +88%

3. Ireland – +76%

4. Poland – +76%

Despite this, rent growth rates lag significantly behind housing price trends. As a result, the gap between the cost of buying and renting is gradually widening.

Interestingly, even during periods when the home-buying market slowed down, rents continued to rise. This makes it a more resilient segment, less dependent on short-term economic fluctuations.

To learn more about the best countries in Europe to live and work in 2026, please follow the link.

Why are housing prices in Europe continuing to rise?

Despite short-term fluctuations, the overall trend in the EU real estate market remains unchanged—prices continue to rise. This is due to a combination of several structural factors that simultaneously influence both demand and supply.

One of the key reasons is the limited supply of available housing, especially in major cities and capitals. New construction cannot keep up with demand, creating a constant shortage. The situation is exacerbated by rising costs of building materials and labor, forcing developers to raise prices.

At the same time, the market maintains steady interest from investors and buyers. Even after a temporary downturn in 2023, demand quickly recovered and began putting upward pressure on prices again as early as 2024. Demographic factors also play a role: major cities continue to grow, increasing the need for housing.

As a result, even moderate growth in demand leads to a noticeable increase in prices, as supply cannot keep up with the new conditions.

In our previous article, we told you where in Europe it will be the cheapest to buy real estate in 2026.

What should be taken into account in 2026?

The European real estate market is entering a new phase following a period of active growth. Despite a certain slowdown in 2023, the overall trend persists, and prices remain high.

In 2026, the situation appears mixed: growth rates may vary depending on the country and city. The greatest pressure on prices remains in major urban centers, where demand consistently outstrips supply.

At the same time, in some countries, markets are just catching up to this trend, showing faster growth rates.

Renting continues to be the more predictable segment, but prices are gradually rising here as well. As a result, the difference between buying and renting is becoming increasingly noticeable, causing many to postpone their decision to purchase a home.

The coming years will largely depend on construction rates and the economic situation. If the housing shortage persists, the market will continue to face pressure from the demand side.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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