House prices across the EU saw a 5.5% increase in the fourth quarter of 2025 year-over-year, with several nations recording gains exceeding 10%. Industry experts attribute this surge to improving financing conditions and stabilizing interest rates, which have brought buyers back into the market.
Hungary topped the list with a remarkable 21.2% annual rise in house prices, fueled by subsidized homeownership schemes and strong investor activity. Portugal and Croatia followed with significant gains of 18.9% and 16.1%, respectively. Spain also reported a robust 12.9% increase.
These strong performances in Portugal, Croatia, and Spain were bolstered by high international demand, lifestyle migration, and significant investment. Limited supply, particularly in key urban and coastal areas, combined with government support measures like guarantees for first-time buyers, further propelled price growth.
Other countries experiencing over 10% house price growth included Slovakia (12.8%), Bulgaria (12.6%), Latvia (11%), Lithuania (10.8%), and Czechia (10.4%). Central and Eastern Europe, along with Iberia, have been standout performers, benefiting from infrastructure investment and capital inflows.
Among the EU's largest economies, Spain saw the most significant rise. Italy recorded a 4.1% increase, Germany a 3% rise, while France experienced a modest 1% increase as its market continues to recover from a correction in previous years.