The housing market in the European Union continues to see upward pressure in early 2025, with both house prices and rents rising notably.
According to data published by Eurostat, house prices in the EU increased by 5.7% in the first quarter of 2025 compared with the same period in 2024. Rents also rose, albeit more modestly, by 3.2% year-on-year.
On a quarterly basis, prices were up by 1.4% compared to the fourth quarter of 2024, while rents rose by 0.9%. These figures highlight a continuing trend of housing costs outpacing wage growth in many parts of the EU.
Taking a longer-term view, house prices across the EU have soared by 57.9% since 2010, while rents have grown by 27.8%. Rents have risen at a steady pace over the years, whereas prices have shown more volatility. A sharp rise in house prices occurred between 2015 and late 2022, followed by a brief dip and a period of stabilisation. However, since 2024, prices have resumed their upward climb.
Looking at individual member states, house prices have outstripped rent increases in 21 out of the 26 countries for which data is available. Since 2010, Hungary has seen the most dramatic rise in property prices, with a staggering 260% increase. Estonia follows closely with a 238% rise, while Lithuania, Latvia, Czechia, and Portugal all saw prices at least double over the same period.
In contrast, Italy was the only EU country where house prices actually fell, dropping by 4%. Meanwhile, rents increased in nearly all EU countries, with Estonia once again leading the pack with a 220% rise. Lithuania, Hungary and Ireland also recorded rent hikes of over 100%. Greece stood out as the only country to experience a fall in rental prices, down by 11% since 2010.
House prices development in EU Member States
These latest figures reaffirm the continued pressure on housing affordability across much of Europe, with both buyers and renters facing increasingly higher costs.
