Housing prices in Europe are rising rapidly: where will real estate prices rise the fastest in 2026?

Real estate prices in Europe continue to rise rapidly, with annual price increases exceeding 20% in some countries. The market is being driven primarily by investors, international demand, and economic growth. Learn more about where housing prices are rising the fastest in 2026

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The European housing market in 2025 is showing steady growth, although the pace varies significantly from country to country. Prices are rising fastest in tourist destinations and areas attractive to investors, while in some countries growth remains moderate or even negative.

The difference between Central and Eastern European countries and the so-called “Big Four” of the EU is particularly noticeable. Data for the last quarter show a clear trend: demand for housing continues to outpace supply, which is driving prices upward.

Where is housing becoming more expensive the fastest: the leading countries?

The real estate market in Europe is growing unevenly, but several countries are significantly outpacing others in terms of price increases. These countries are characterized by a combination of several factors: high demand, investor activity, and government incentives.

Hungary — +21.2%

The highest rate in Europe. The growth is linked to government programs supporting home purchases and active investor interest, especially in Budapest.

Portugal — +18.9%

One of the most overheated markets. Demand is driven by foreign buyers and investors, particularly due to the country’s popularity among expats and digital nomads.

Croatia — +16.1%

Prices are rising due to the country’s appeal to tourists and real estate purchases by foreigners, especially along the coast.

Spain— +12.9%

Stable demand from international buyers and market recovery following previous downturns are driving price growth.

Central and Eastern Europe: steady double-digit growth

Countries in this region do not always top the rankings, but they demonstrate steady and rapid price growth. The main reasons are economic development, an influx of investment, and the so-called “catch-up effect,” where markets gradually align with more expensive EU countries.

1. Slovakia — +12.8%

2. Bulgaria — +12.6%

3. Latvia — +11%

4. Lithuania — +10.8%

5. Czech Republic — +10.4%

Other European countries: moderate price growth

In most European countries, the housing market remains stable, but without sharp spikes. Here, prices are rising more slowly, indicating a more balanced supply and demand.

- Denmark — 7.6%

- Ireland — 7%

- Romania — 6.7%

- Netherlands — 6.2%

- Malta — 6.1%

- Cyprus — 6%

- Slovenia — 5.8%

- Norway — 5.7%

- Estonia — 5.5%

- Switzerland — 3.9%

- Austria — 3.7%

- Belgium — 3.5%

- Iceland — 3.3%

These figures are typical of more mature markets, where there is no longer a sharp “catch-up” effect, and prices depend more on macroeconomic factors, income levels, and access to credit.

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The EU’s “Big Four”: Different Growth Rates

The largest economies of the European Union are showing significantly different trends in the real estate market. While some countries maintain active growth, others have already shifted to a more subdued trajectory.

1. Spain — +12.9%. The only one of the “four” where the market is growing rapidly. The main driver is international demand and popularity among investors and buyers of vacation properties.

2. Italy — +4.1%. Moderate growth, characteristic of a stable but not overheated market.

3. Germany — +3%. Following a period of correction, the market is showing a cautious recovery.

4. France — +1%. The lowest growth rates among major economies indicate de facto price stagnation.

Thus, even among the leading EU economies, the situation varies significantly: from active growth to a near-complete market standstill

What to consider before buying a home in Europe?

The real estate market in Europe remains dynamic and varies greatly by country. In some countries, prices are rising at double-digit rates, while in others they are stabilizing or even falling. Therefore, before buying, it is important to assess not only current prices but also the factors influencing the market.

First and foremost, you should consider demand trends—especially from foreign investors—the country’s economic situation, mortgage availability, and prospects for future price growth. In tourist destinations, housing prices are rising faster, but the risk of market overheating is also significantly higher there. At the same time, countries in Central and Eastern Europe may offer more affordable options with potential for further growth.

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