The EU real estate market continues to grow, as **EU real estate prices** rose despite global economic challenges. According to a report from Eurostat, average house prices in the EU increased by 5.5% year-on-year in the fourth quarter of 2025. In the eurozone, prices rose by 5.1%, while rental rates across the union grew by 3.2% during the same period.
Short-term dynamics show more moderate growth compared to the third quarter of 2025. House prices increased by 0.8% and rents rose by 0.6% on a quarterly basis.
Buying Outpaces Renting
Eurostat analysis for the decade between 2015 and 2025 shows why European real estate remains a primary investment tool. During this period, the purchase price of housing in the EU surged by 64.9%, while rents increased by only 21.8%.
In 25 EU countries, the growth rate of property prices significantly exceeded rent increases. Hungary was the absolute leader of the decade, with house prices nearly quadrupling (+290%). Prices more than doubled in 12 other states, including Portugal (+180%), Lithuania (+168%), and Bulgaria (+157%).
The rental market also saw universal increases, with rates rising in all 27 EU countries over the ten-year period. The leaders in rent growth were Hungary (+109%), Lithuania (+88%), Ireland (+76%), and Poland (+76%).
EU Real Estate Prices: Hot Markets and Baltic Stability
By the end of 2025, several nations in Eastern and Southern Europe recorded double-digit annual growth in house prices. The top six fastest-growing markets were:
- Hungary: +21.2%
- Portugal: +18.9%
- Croatia: +16.1%
- Spain: +12.9%
- Slovakia: +12.8%
- Bulgaria: +12.6%
The situation in the Baltic states remains mixed but shows a steady upward trend. In Latvia, housing prices rose by 11% over the year, double the EU average. Lithuania recorded growth of 10.8%, and Estonia saw a 5.5% increase.
The Finland Anomaly
During the fourth quarter of 2025, prices rose in 22 EU countries, with Slovenia seeing the largest quarterly jump at 5.1%. Prices in Cyprus remained flat. Slight quarterly declines were noted in France (-0.7%) and Estonia (-0.3%).
However, Finland remains a distinct exception in the European market. It is the only country in the EU where prices have seen a sustained decline. In the fourth quarter of 2025, housing there became 3.1% cheaper year-on-year. Furthermore, Finland was the only EU state where real estate prices fell over the last decade, dropping 3% since 2015.