Housing Prices in the EU Are Rising Faster Than Inflation: Where Prices Have Risen the Most
9 July 10:43
In the first quarter of 2026, housing prices in European Union countries rose by 5.1% year-over-year, while rents increased by 3%. Both figures exceeded the average inflation rate in the EU, which stood at 2.3%. Euronews reported this, citing data from Eurostat, according to
According to the publication, housing prices rose in nearly all EU countries. The only exception was Finland, where prices fell by 2% over the year.
Where housing prices are rising the fastest
Portugal led the way in terms of price growth, with housing costs rising by 17.8%. The top five also included:
- Bulgaria — 14.8%;
- Slovakia — 14.4%;
- Croatia — 14.3%;
- Spain — 12.8%.
Among the largest economies of the European Union, Spain recorded the highest rate of real estate price increases. At the same time, prices in France remained virtually unchanged (0.1%), rose by 1.4% in Germany, and by 5.2% in Italy.
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Double-digit growth was also recorded in Lithuania (11.9%), Hungary (11.2%), Latvia (10.9%), and the Czech Republic (10.1%).
Growth Outpaces Inflation
As Euronews notes, in a number of countries, housing prices rose about 10 percentage points faster than consumer prices. This is particularly true for Portugal, Bulgaria, Slovakia, Croatia, and Spain.
At the same time, Romania and Iceland were exceptions, where inflation outpaced the rise in housing prices.
Rents also continue to rise
On average across the EU, rents increased by 3% over the year, though some countries saw significantly higher rates.
Croatia was the clear leader, with rents rising by as much as 39.1%.
It was followed by:
- Bulgaria — 10.5%;
- Iceland — 8.4%;
- Romania — 8.4%;
- Greece — 8.1%.
Among the EU’s largest economies, Italy saw the highest rent growth (3.8%), while in Spain it was 2.5%, in Germany — 2.2%, and in France — 1.9%.
Why Real Estate Prices Are Rising
Mikk Kalmet, an expert at Global Property, explained that the main reasons for the price increases remain high construction costs, a shortage of new housing, and sustained demand that continues to outpace supply.
Furthermore, according to Eurostat, in 2025, households in the EU spent an average of 18.9% of their disposable income on housing, and in some countries, this figure exceeded 30%.
As reported by
