Slowed Growth of Housing Prices in the EU and Eurozone

The growth of housing prices in the EU and Eurozone significantly slowed in the third quarter of 2022, and it also eased in Croatia, although it remained above the European average, a report from Eurostat revealed on Tuesday.

On an annual basis, housing prices in the EU rose by 7.4 percent in the third quarter, following a revised growth of 9.8 percent in the period from April to June, statisticians determined.

In the Eurozone, prices increased by 6.8 percent in the summer quarter, after a 9.2 percent jump in the period from April to June.

All EU countries for which Eurostat had data recorded annual price growth in the third quarter, except for Denmark, where prices fell by 2.4 percent.

The highest increase in property prices was recorded in Estonia, at 24.2 percent. This was followed by Hungary and Lithuania with price increases of 21 and 19.3 percent, respectively.

In Croatia, housing prices in the third quarter were 14.8 percent higher than in the same period the previous year. In the previous quarter, they increased by 13.6 percent on an annual basis.

Slovakia recorded almost the same percentage increase during the period from July to September.

The most modest increase was in Sweden, at only 1.1 percent.

Eurostat did not have data for Greece.

Croatia alongside Slovakia

A comparison with the spring quarter shows a price increase of housing in the EU and Eurozone of 0.9 and one percent, respectively.

In the second quarter, prices had risen by 2.3 percent in the EU and by 2.2 percent in the Eurozone.

Properties became more expensive compared to the second quarter in 20 EU member states, with the strongest increase in Cyprus, at 5.8 percent. This was followed by Bulgaria and Austria with price increases of 4.1 and four percent, respectively.

In Croatia, housing prices from July to September rose by 2.8 percent compared to the second quarter when they increased by 3.7 percent.

Slovakia recorded the same percentage increase in the third quarter, and Ireland and Portugal were close with price increases of 2.9 percent, and France where prices increased by 2.7 percent.

The largest decline in prices was recorded in Denmark, at 3.8 percent.

Properties also became cheaper in Sweden, by 3.1 percent, and in Finland, by 1.3 percent. This was followed by Romania with a price drop of 1.2 percent, and Italy and Germany where prices fell by one and 0.4 percent, respectively.