The European property market has undergone dramatic changes over the past decade, with rising building costs, increasing mortgage rates, and a surge in property investment driving prices to record highs across the EU and beyond.
Biggest Price Rises in Europe
Hungary
- Property prices tripled since 2015
- In Budapest: apartment prices now range from €250,000 to €1.5 million
Iceland
- Prices have risen 2.5x since 2015
- Reykjavík region: average purchase price ~€558,000
- Despite slowing demand, YoY inflation was 8% as of March 2025
Other Countries with Major Increases:
- Lithuania, Portugal, Czech Republic, Bulgaria, Estonia, Poland: All saw property prices more than double since 2015
Finland
- At the bottom of the list: Prices only slightly higher than a decade ago
- In Helsinki: 75 sqm flat costs around €400,000 – €500,000
Turkey’s Unique Position
- Property prices are now 17x higher than in 2015
- Istanbul: A typical 2-bedroom flat costs ~€120,000
- But inflation is ~38% YoY and average salaries remain low (~€600/month)
Rent Increases: Which Countries Saw the Biggest Hikes?
According to Eurostat, EU-wide rents rose by 26.7% between 2010 and Q4 2024. But several countries far exceeded this:
Top 5 Rent Surges
- Estonia: +212%
- Lithuania: +175%
- Iceland: +120%
- Hungary: +114%
- Turkey: 8.8x higher than in 2010
Most Affordable Rental Market:
- Greece: Rents are 13% cheaper than in 2010
Average age when people leave their parental home Eurostat
Housing Costs Including Utilities: Who Pays the Most?
From 2015 to March 2025:
- Estonia: Housing costs more than doubled
- Poland & Czech Republic: +80%
- Spain: Smallest rise at just over 20%
- Ireland: Highest costs in the EU vs average
- Bulgaria: Lowest housing costs, under 40% of EU average
Property Investment by GDP
According to Eurostat (2023):
- Cyprus: Property investment = 8.6% of GDP
- Italy: 7%
- Germany: 6.9%
- France: 6.4%
- Poland: Lowest at 2.2%, followed by Greece at 2.3%
Average housing investment across the EU in 2023 was 5.8% of GDP (~€1 trillion).
Takeaway for Investors & Homebuyers Whether you’re exploring rental yields, long-term capital appreciation, or lifestyle investments, understanding how each country’s property market has evolved is essential. For tailored advice and EU-focused opportunities, contact Piccadilly Estates today.
Reference: MSN
