Real Estate in Europe: How Housing Prices Changed in 2024.

The EU Real Estate Market Shows Signs of Stabilization and Growth

According to Eurostat, the real estate market of the European Union shows signs of stabilization and growth. In the second quarter of this year, housing prices in the EU increased by 1.9% compared to the previous quarter, and rent went up by 0.7%. In annual terms, growth amounts to 2.9% for the sales market and 3% for rentals.

These figures indicate a significant recovery after instability observed since the end of 2022. Notably, from 2010 to the second quarter of 2024, rental payments in the EU have risen by 24.8%, while housing prices have soared by 51.8%.

Experts attribute this revival in the real estate market to the reduction in interest rates and stabilization of the economic situation. This has led to the return of investors to the European real estate market, although the situation remains heterogeneous in different EU countries.

Price Growth in Housing is Most Noticeable in the Baltic and Central European Countries

In recent years, the most significant growth in housing prices has been noted in the Baltic and Central European countries. The leading country in this regard is Estonia, where prices have increased by 232%. It is followed by Hungary with a 218% increase, Lithuania with 178%, and Latvia with 146%. These figures significantly exceed the EU average.

It should also be noted that rental payments have also substantially increased, especially in Estonia, where prices rose by 203%. The same high growth was observed in Lithuania, Ireland, and Hungary. Except for Greece, where a reduction in rental prices was recorded, rental rates continue to rise in other countries.

Dynamics of Real Estate Prices in Different EU Countries

In the second quarter of 2024, the largest drop in prices was recorded in Luxembourg (-8.3%), Finland (-4.8%), and France (-4.6%). On the contrary, the highest price increases are seen in Poland (+17.7%), Bulgaria (+15.1%), Lithuania (+10.4%), and Croatia (+10.0%).

Forecasts for the EU Real Estate Market

Experts forecast further revival of the real estate market in most EU countries. Particularly, investment growth is expected in the Netherlands' real estate market and again in the residential real estate market in Denmark. Italy also shows increased investor interest in the hotel business.

Moreover, over the past 6 months, apartment rentals in Kyiv have significantly increased, with a growth of 55.53%.