Croatia in the Top 5 EU Countries for Apartment Price Growth

Housing prices in the European Union continued to rise in the second quarter of 2025, marking the seventh consecutive annual increase. According to Eurostat data, compared to the same period last year, nominal prices increased in all member states except Finland, while after adjusting for inflation, real prices rose in 21 out of 26 countries.

Such data shows that despite the decline in purchasing power and the increasing difficulty for young people to enter the real estate market, the pressure on prices is still not decreasing.

Seven countries with growth exceeding 10 percent

The average annual growth of house prices in the EU was 5.4 percent, with seven countries recording double-digit jumps. The highest growth was recorded in Portugal (17.1 percent), Bulgaria (15.5 percent), and Hungary (15.1 percent). Following are Croatia (13.2 percent), Spain (12.8 percent), Slovakia (11.3 percent), and the Czech Republic (10.5 percent).

In contrast to the trend, Finland is the only country where prices fell, by 1.3 percent compared to last year. A slight growth of less than 1 percent was recorded in France (0.5 percent), Sweden (0.7 percent), and Cyprus (1 percent).

Among the major EU economies, growth was more modest. For instance, Germany recorded 3.2 percent, and Italy 3.9 percent.

Outside the EU, Turkey continues to lead. According to the latest available data from the fourth quarter of 2024, prices there jumped by as much as 28.5 percent, the highest growth in Europe.

Real growth led by Portugal and Bulgaria

When adjusted for inflation, or presented in “real” terms, real estate prices in the EU increased on average by 2.8 percent. The highest real growth was again recorded in Portugal (14.3 percent) and Bulgaria (14.1 percent), both above 14 percent. Following are Hungary and Spain (9.2 percent) and Croatia (8.9 percent), which also approached double-digit growth.

– Portugal has experienced a price explosion due to strong demand from foreign buyers – especially digital nomads and expatriates who take advantage of tax incentives and residency programs – while at the same time, a chronic shortage of new apartments further fuels growth – stated Mikk Kalmet from Global Property Guide for Euronews Business.

A similar situation is recorded in Bulgaria, where, according to the Deloitte Property Index 2025 report, ‘economic growth, favorable loans, and optimism regarding entry into the euro area’ further stimulated demand.

A decline in real prices was recorded in five countries, mostly mild. The largest drop was in Finland (–2.6 percent), followed by Sweden (–1.7 percent) and Romania (–1.2 percent), while changes in France (–0.1 percent) and Austria (–0.3 percent) were minimal. In Italy (1.8 percent) and Germany (0.7 percent), growth was below 2 percent.

Five-year growth – Portugal ahead, Croatia follows

Looking over a longer period, between the second quarter of 2020 and 2025, real estate prices increased the most in Portugal, by as much as 40.6 percent. Following it are Croatia (29.9 percent), Hungary (29.4 percent), Lithuania (28.8 percent), Bulgaria (25.1 percent), Estonia (22.5 percent), and Slovenia (20.3 percent).

– Portugal continues to benefit from popularity among foreign buyers and investors, and the non-habitual resident (NHR) tax incentive program has further stimulated the market – said Alex Koch de Gooreynd from Knight Frank. He added that alongside traditional centers like Lisbon, Porto, and the Algarve, more buyers are turning to quieter areas like Alentejo.

At the opposite end of the scale is Finland, with a decline in real prices of 18 percent, followed by Romania (–13.7 percent) and Sweden (–10 percent). According to Kalmet, the reasons are a combination of weak economic growth, rising unemployment, and higher interest rates that have reduced the affordability of housing loans. The stock of unsold new apartments further pressures the market, especially in the wider Helsinki area.

Among the four largest EU economies, only Spain (+14 percent) records growth, while prices in Germany (–8.5 percent), France (–6.1 percent), and Italy (–3 percent) have fallen.

– Markets like Spain, Croatia, and Greece continue to benefit from international buyers, tourism, and relatively lower prices compared to Northern Europe. However, rising interest rates are slowly cooling prices in certain cities – concludes Kalmet.

On the broader European market, Turkey remains an extreme example; from the end of 2019 to the end of 2024, nominal prices increased by 1,175 percent, while inflation during the same period was around 500 percent, according to Eurostat.