The cost of buying a home in Europe is rising rapidly. Find out why Portugal and Bulgaria have seen the sharpest price increases and in which EU countries real estate prices have fallen
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Housing prices in Europe continue to show sharp fluctuations: while in some regions buying real estate is becoming increasingly less affordable, in others prices are falling slightly. According to Euronews data for the second quarter of 2026, the average annual increase in residential real estate prices in the EU was 4.7%. This significantly exceeds the overall inflation rate, which stood at 3.2% during the same period.
In which EU countries did housing prices rise the most?
Overall, in nine of the 29 European countries, the annual jump in housing prices exceeded 10%. Portugal and Bulgaria were the absolute leaders in terms of the rate of growth in price per square meter.
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Portugal and Bulgaria—Leaders in Price Growth
Portugal (+16.5%): The main reason for this surge is a supply shortage amid high demand. According to Mikka Kalmet, a real estate expert at Global Property Guide, a lack of new construction, active foreign investment, and a tourism boom are putting serious pressure on the market, especially in Lisbon, Porto, and coastal areas.
Bulgaria (+15.5%): Bulgaria’s real estate market is growing thanks to rising incomes, relatively cheap mortgages, and high buyer interest in housing as a means of preserving and investing capital.
Other countries with high rates of real estate price increases
Significant increases in housing prices have also been recorded in the following countries:
Lithuania — 14.3%
Slovakia — 13.6%
Croatia — 12.7%
Spain — 12.1%
Romania — 12.1%
Latvia — 11.4%
Hungary — 10.2%
EU Countries Where Housing Prices Have Fallen
Despite the general upward trend in prices, buying real estate has become more affordable in three EU countries compared to last year.
Price declines were recorded in the following countries:
Finland (-2.7%)
Luxembourg (-2.2%)
France (-0.8%)
Why Are Housing Prices Falling in Finland and France
As Mikko Kalmet notes, the real estate market in Finland is being held back by modest economic growth, low consumer confidence, and the effects of high mortgage interest rates.
In France, the price decline is driven by the high cost of mortgage financing, widespread housing affordability issues, and economic uncertainty, which often leads buyers to postpone purchases.
Real Estate Price Trends Adjusted for Inflation
When assessing real growth in housing prices (adjusted for inflation), the average increase across the EU was 1.5%.
Real Price Growth in European Countries
In many regions, real housing prices significantly outpaced inflation:
Portugal — 12.1%
Slovakia — 9.4%
Bulgaria — 9.1%
Lithuania — 8.8%
Spain — 8.3%
Latvia — 7.9%
Denmark — 7.7%
Hungary — 7.7%
Croatia — 7.5%
In particular, housing prices in real terms fell in six European countries. The largest decline in real prices was recorded in Luxembourg—6.4%. In France, real prices fell by 3.2%, and in Germany—by 2%.
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