EU house prices suffer first quarterly fall since 2015

House prices EU
(Source: Eurostat)

House prices in the EU fell for the first time since the upward trend began in 2015, Eurostat data showed. The prices were 1.5% lower in the final quarter of 2022 compared with the third quarter of the same year, following a decline in 15 of the bloc’s 27 member states as high interest rates brought an end to a nearly decade-long boom in residential property markets.

Meanwhile, rents continued their upward trajectory (+0.6% compared with the third quarter of 2022). House prices and rents in the EU followed a similar increasing path between 2010 and the second quarter of 2011. However, after this quarter, house prices and rents have evolved differently. While rents increased steadily throughout this period up to the fourth quarter of 2022, house prices fluctuated considerably.

After a sharp decline between the second quarter of 2011 and the first quarter of 2013, house prices remained more or less stable between 2013 and 2014. After a rapid rise in early 2015, house prices increased faster than rents until the second quarter of 2022. In the third quarter of 2022, house prices increased at the same pace as rents (both +0.7% compared with the second quarter of 2022).

From 2010 until the fourth quarter of 2022, rents increased by 19% and house prices by 47%.

House prices more than doubled in Estonia, Hungary, Lithuania, Luxembourg, Latvia, Austria and Czechia

When comparing the fourth quarter of 2022 with 2010, house prices increased more than rents in 18 EU countries.

Over this period, house prices increased in 24 EU countries and decreased in three. They more than doubled in Estonia (+199%), Hungary (+174%), Lithuania (+142%), Luxembourg (+136%), Latvia (+133%), Austria (+126%) and Czechia (+125%). Decreases were observed in Greece (-14%, see methodological notes), Italy (-9%) and Cyprus (-4%).

For rents, prices increased in 26 EU countries and decreased in one, with the highest rises in Estonia (+216%) and Lithuania (+160%). The only decrease was recorded in Greece (-23%).