Explosion on the real estate market in Europe: Hungary rises above 20% in housing prices, Romania – above the EU average
House prices in the European Union continued to rise in the last quarter of 2025, but the pace remained uneven across countries. At EU level, the average increase was 5.51%, according to Eurostat, as financing conditions improved and buyers returned to the market after a period of high interest rates.
Specialists explain this trend by the stabilization of interest rates, which brought back to purchase some of those who had postponed real estate purchases in previous years.
Hungary, the leader in price increases in the EU
Hungary recorded the highest annual growth rate housing prices, of 21.2%. Analysts attribute the advance to government programs to subsidize real estate purchases, which have stimulated both domestic demand and investment.
In the euro area, the largest increases were recorded in Portugal (+18.9%), Croatia (+16.1%) and Spain (+12.9%).
International demand played a key role, supported by lifestyle migration, holiday home purchases and foreign investment, including from digital nomads and retirees.
In Portugal, price pressure was amplified by limited supply in the major cities of Lisbon and Porto, but also by loan guarantee programs for young people.
Increases of over 10% were also recorded in Slovakia (12.8%), Bulgaria (12.6%), Latvia (11%), Lithuania (10.8%) and the Czech Republic (10.4%).
The region has been supported by economic growth and infrastructure investments, which has kept demand high in the real estate market.
Romania, above the EU average
Romania reported an increase of 6.7%, above the European average of 5.5%, but below the level of some countries in the region.
Comparatively, Denmark recorded an advance of 7.6%, and Ireland of 7%.
Finland is the only market analyzed where house prices fell, by 3.11% year-on-year.
Germany recorded modest growth of 3%, and France of only 1%, with both markets continuing to recover after corrections in 2023–2024.
Source:adevarul.ro
