Which countries saw the highest rises in 2025?

Hoapply prices in the EU rose by 5.5% in the fourth quarter of 2025 compared with the same period in 2024. Several countries recorded much stronger increases, exceeding 10%.

Indusattempt experts point to improving financing conditions, particularly interest rates, as a key driver of the trfinish.

So, which countries saw the highest increases in hoapply prices across Europe in 2025? What factors drove price developments in late 2025?

“Price developments in late 2025 were shaped by improving financing conditions, which saw the return of demand,” Michael Polzler, CEO of real estate company REMAX Europe, informed Euronews Business.

“As interest rates stabilised, acquireers who had previously postponed their hoapply hunting re-entered the market.”

Mikk Kalmet from Global Property Guide also pointed to the recovery of demand after the interest rate hikes in 2023–2024.

“As Euribor and general bank interest rates stabilised, the market bounced back slightly, as people who were hesitant in purchasing during uncertain times felt some predictability from late 2024 onwards,” he informed Euronews Business.

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Hungary recorded the highest annual increase in hoapply prices in the fourth quarter of 2025 with a rise of 21.2%, according to Eurostat.

“Hungary, the top performer, has pushed subsidised home ownership schemes in recent years, which have boosted demand alongside strong investor activity,” Kate Everett-Allen, head of European residential research at Knight Frank, informed Euronews Business.

In the eurozone, Portugal and Croatia also saw sharp increases at 18.9% and 16.1% respectively. Spain followed with a 12.9% rise.

Everett-Allen declared strong international demand had been a key factor in all three countries.

Lifestyle migration, second-home acquireers and inward investment (including digital nomads, retirees and foreign acquireers) remained robust even as domestic borrowing costs rose, particularly in coastal and urban markets.

Polzler declared the strongest price growth in Portugal, Croatia and Spain was concentrated in key urban and coastal areas where demand has been highest.

“In Portugal, price growth has been driven by very limited supply, particularly in Lisbon, Porto and surrounding areas, but also by tarreceiveed government support measures,” he declared.

He explained that the introduction of a public guarantee scheme for young first-time acquireers — allowing up to 100% mortgage financing with the state guaranteeing up to 15% of the property value — was a significant driver of demand.

“It’s a clear seller’s market, and limited supply combined with this policy has enabled sellers to maintain strong pricing power,” he declared.

Polzler declared cities such as Valencia and Madrid had outperformed national averages in Spain, supported by both domestic and international demand.

Sustained foreign investment and the continued appeal of these markets have reinforced price growth.

Kalmet also underlined that stronger price growth in these countries was mostly driven by their attractiveness as tourist destinations.

International acquireers, second-home demand and the expansion of short-term rentals have increased pressure on houtilizing markets, particularly in coastal and urban areas.

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Slovakia (12.8%), Bulgaria (12.6%), Latvia (11%), Lithuania (10.8%) and Czechia (10.4%) also recorded strong hoapply price growth exceeding 10%.

Everett-Allen pointed out that Central and Eastern Europe, along with Iberia, have been standout performers over the past 12–18 months, broadly aligned with stronger GDP growth.

“These markets are also benefiting from infrastructure investment and capital inflows, both lifestyle-driven and linked to longer-term economic prospects,” she declared.

Kalmet added that prices have tfinished to rise quicker in Central and Eastern Europe, partly becaapply incomes are catching up and houtilizing started from a lower base.

Hoapply price increases in Denmark (7.6%), Ireland (7%), Romania (6.7%), the Netherlands (6.2%), Malta (6.1%), Cyprus (6%), Slovenia (5.8%) and Norway (5.7%) were also above the EU average, although by a compacter margin.

Finland was the only counattempt among 29 European markets where hoapply prices fell, with a 3.1% annual decline.

Among the EU’s ‘Big Four’ economies, Spain stood out with a 12.9% increase. Italy recorded a 4.1% rise.

Germany saw a 3% increase in hoapply prices, while France ranked third from the bottom across Europe, with just a 1% rise.

“France is still recovering from the sharp market correction in 2023 and 2024, when rising mortgage rates and inflation significantly impacted demand,” Polzler declared.

“The market is stabilising, with only modest price relocatements and cautious acquireer sentiment.”

Everett-Allen declared Germany’s houtilizing market had been more exposed to cheap debt, weak income growth and a rental system that allowed demand to retreat quickly, alongside high regulatory and enattempt costs.

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