The rise in the cost of living continues to be the main source of concern for citizens of the European Union. According to the Eurobarometer from 2024, it is the cost of living that has been highlighted as the greatest source of stress among Europeans, and the increase in real estate prices and rents significantly contributes to this feeling of insecurity.
In the last quarter of 2024, house and apartment prices in the European Union rose by 4.9 percent compared to the same period the previous year. Rents increased by 3.2 percent during the same period. For the entire year, the average increase in real estate prices in the EU was 3.3 percent, while rents rose by 3.1 percent, according to Eurostat data.
Unequal Growth
The increase in real estate prices has not been uniform across all member states. While some countries, such as France and Germany, recorded a decline in the value of residential units, Eastern and Southeastern Europe led the growth. The highest annual increase was recorded in Bulgaria, where prices rose by 16.5 percent. Poland followed with a growth of 15 percent, and Hungary with 12.8 percent. Croatia is also among the countries with the most pronounced increase, with an annual growth of 10.4 percent. High growth was also recorded in Portugal (9.1 percent), Spain and Ireland (both 8.5 percent), and the Netherlands (8.2 percent).
In contrast, in France, real estate prices fell by 3.7 percent, in Germany by 1.6 percent, in Austria by 0.2 percent, while the largest decline was recorded in Luxembourg, at 5.2 percent. These differences confirm a clear pattern: Western and Northern Europe are experiencing slower growth or decline, while Eastern Europe is facing accelerated price increases.
Croatia among the most expensive
Croatia, with an annual growth of 10.4 percent, is among the five EU countries with the highest increase in housing prices. This trend confirms the growing problem of housing affordability, especially in larger cities and tourist-attractive areas.
Rents have increased at a slightly slower pace compared to the real estate market, but still significantly burden households, particularly in Central and Eastern European countries. The largest increase was recorded in Hungary, where rents rose by 12.4 percent. According to unofficial estimates from market analysts, the annual growth of rents in Croatia ranged between 8 and 10 percent. High increases were also recorded in Romania and Bulgaria, while in Germany and France, the rates were below average – 2.2 and 2.3 percent, respectively. Italy recorded a growth of 3.2 percent. Estonia was the only member state where rents fell, by 0.9 percent.
