European Real Estate Market – Where To Invest In Property In Europe
This article analyzes the current European real estate market using data from Deloitte, Eurostat and other sources. It compares property prices, housing affordability, new construction activity and residential transaction trends across key countries. The piece highlights where prices are rising or falling, which markets remain the most affordable, and where investors may find the strongest opportunities. It also covers Spain’s appeal, Central and Eastern European city prices, and forecasts for 2026, when a gradual recovery is expected as interest rates ease and market activity improves.
The current situation on the real estate market in Europe
Where to buy property in Europe in 2026? Will apartment prices fall? The European residential real estate market is going through a period of dynamic change and transformation. At Globihome we analyze the best countries to invest in real estate. According to the latest data from raportu Mordor Intelligence, the size of this sector is estimated at an impressive 2.04 trillion USD in 2025, with a forecast increase to 2.54 trillion USD by 2030, at a compound annual growth rate (CAGR) of 4.5%.
The real estate market in individual European countries differs from one another. In some countries you can still find cheap properties in Europe. For investors, developers and potential buyers, it is crucial to understand the current trends and future directions of development. In this article you will find Globihome's own analyses and data from international reports by Deloitte, Eurostat, Bankier or Mordor Intelligence.
Where are property prices in Europe rising, and where are they falling?
The European real estate market in 2023-2024 was characterized by significant variation in the pace of price growth. According to data from the 13th edition of the Deloitte Property Index - Overview of European Residental Markets report, some countries experienced spectacular increases, while others recorded declines.
The Deloitte report shows that in 2023 property prices rose in 15 of the 24 countries surveyed, confirming the overall upward trend in the European housing market despite economic challenges.
Property price growth in Europe:
- Hungary: increase by 13.3%
- Poland: increase by 12.1%
- Portugal: increase by 11.5%
- Czech Republic: increase by 9.3%
Where are property prices falling?
- Italy: decrease by 10.7%
- Israel: decrease by 4.6%
- Denmark: decrease by 3.8%
- Norway: decrease by 3.5%
Looking at the dynamics in local currencies, which gives a better picture of the actual changes, the largest increase in new apartment prices was recorded in Hungary (+10.56%), Norway (+9.05%) and Poland (+7.94%). On the other hand, the largest declines in transaction prices in local currency affected Denmark (-3.61%) and the United Kingdom (-3.29%).
The latest Eurostat data from Q3 2024 confirm further price growth in many EU countries. In Poland, property prices rose by an average of 14.4% year on year, which is the second-highest increase in the EU-27. A higher increase was recorded only in Bulgaria (16.5%). In the same period, the average price increase in the EU-27 countries was 6.5%, and in the euro area 4.1%.
Average property prices in European countries
The analysis of average transaction prices of new houses in 2024 shows significant differences between individual European countries. Below is a comparison of prices in EUR per square meter.
The highest property prices in Europe:
- Israel: 5439 EUR/m²
- Austria: 4920 EUR/m²
- Germany: 4700 EUR/m²
- France: 4538 EUR/m²
- Netherlands: 4266 EUR/m²
Average property prices in Europe:
- Spain: 2745 EUR/m²
- Hungary: 2605 EUR/m²
- Slovenia: 2610 EUR/m²
- Poland: 2219 EUR/m²
- Croatia: 2246 EUR/m²
- Italy: 2118 EUR/m²
The lowest property prices in Europe:
- Bosnia and Herzegovina: 1315 EUR/m²
- Greece: 1463 EUR/m²
- Romania: 1504 EUR/m²
The most expensive city in Europe in terms of price per square meter for a new apartment is Paris, where the average price is as much as 14 900 EUR/m². Second is Tel Aviv (13 886 EUR/m²), followed by Munich (10 900 EUR/m²).
Housing affordability in European countries
Despite rising prices in some countries, the purchasing power of residents varies significantly across European countries. The housing affordability index, expressed as the number of average annual gross salaries needed to buy a 70 m² apartment, shows large variation according to data from the Deloitte report:
- Czech Republic: 13.3 average annual salaries (least affordable)
- Slovakia: 12.7 average annual salaries
- Israel: 10.2 average annual salaries
- Ireland: 10.2 average annual salaries
- Hungary: 10.2 average annual salaries
- Serbia: 9.8 average annual salaries
- France: 9.8 average annual salaries
- Croatia: 8.3 average annual salaries
- Poland: 7.9 average annual salaries
- Bosnia and Herzegovina: 7.7 average annual salaries
- Netherlands: 7.2 average annual salaries
- United Kingdom: 7.2 average annual salaries
- Slovenia: 6.9 average annual salaries
- Greece: 6.8 average annual salaries
- Romania: 6.8 average annual salaries
- Italy: 5.3 average annual salaries
- Norway: 4.8 average annual salaries (best affordability)
- Denmark: 4.7 average annual salaries
In the Czech Republic, the average citizen needs as many as 13.3 gross average annual salaries to buy a standard new apartment of 70 m² - this is the worst result in all of Europe.
Where is the most housing being built in Europe?
The latest data from the Deloitte report show that France, Germany and Poland are among the leading countries with the highest number of newly built apartments. in terms of the number of apartments completed per 1,000 inhabitants, Ireland is the leader in Europe, just ahead of Israel and Poland. These three countries clearly dominate Europe in terms of the intensity of new residential construction.
How many properties are being built in Europe:
- Ireland: 6.19 units per 1000 inhabitants
- Israel: 5.88 units per 1000 inhabitants
- Poland: 5.86 units per 1000 inhabitants
In terms of the absolute number of apartments completed in 2023, the leaders were:
- France: over 373 thousand apartments
- Germany: 245 thousand apartments
- Poland: over 220 thousand apartments
Where are cheap properties in Europe?
Raport Polskiego Instytutu Ekonomicznego z IV kwartału 2024 roku shows the variation in apartment prices in major cities in Central and Eastern Europe:
- Prague (Czech Republic): 5.6 thousand EUR/m² - the most expensive city
- Brno (Czech Republic): 4.6 thousand EUR/m²
- Warsaw (Poland): 4.3 thousand EUR/m²
In the fourth quarter of 2024, the real estate market in Central and Eastern Europe recorded significant apartment price increases, with Poland and the Czech Republic standing out from other countries. In Gdańsk, apartment prices rose by an average of 14% year on year, as did in the Czech cities of Plzeň and Brno, where a 13% increase was recorded. Double-digit increases were also observed in Warsaw, Bratislava, Prague, and Liberec. In the same period, Estonia recorded the slowest price growth, hovering around 1% in both Tallinn and Tartu. The highest property prices were observed in the Czech Republic, where in Prague the average price per square meter was 5.6 thousand EUR, exceeding prices in Warsaw (4.3 thousand EUR) and Brno (4.6 thousand EUR). In Bratislava, prices exceeded 4 thousand EUR per square meter, while in other major cities in Central and Eastern Europe prices ranged from 2.2-4 thousand EUR per square meter.
Apartment prices in Spain
Spain is currently one of the most attractive real estate markets in Europe, as confirmed by the latest data on foreign investment in the country.
According to data Registradores de España, the share of property purchases in Spain by foreigners amounted to 14.48%. Among the most frequent buyers were nationals of the United Kingdom (8.57%), Germany (6.67%), the Netherlands (5.91%), Morocco (5.30%), France (5.28%), Romania (5.17%), and Italy (4.76%).
The highest share of transactions concluded by foreigners was recorded in the Balearic Islands (32.8%), Valencia (29.6%), the Canary Islands (24.5%), Murcia (22.8%), Catalonia (16.5%), and Andalusia (14%).
The most popular regions of Spain for property investment:
According to data from the fourth quarter of 2024, the average price per square meter was 2745 EUR, which represents an increase of 2.4% compared with the previous quarter. Importantly, these prices exceeded the levels from 2007, reaching a new all-time high, being 12.5% higher than at the peak of the previous real estate boom. This increase was driven by both the resale market, which recorded a 1.6% rise, and the new-build market, where prices increased by 3.7%. This trend reflects growing demand for real estate.
Market experts note that after the Russian invasion of Ukraine, Spanish developers observed increased interest in apartments among citizens of Poland, Ukraine and the Baltic states. Many buyers from Central Europe cite the "security motive" as an important factor when purchasing property in Spain.
Residential transactions in Europe
2023 brought a decline in the number of residential transactions in most EU countries. According to Eurostat data published in the report, the number of transactions fell in 13 of the 16 EU countries for which data are available. The largest declines were recorded in:
- Luxembourg: -43,3%
- Austria: -26,4%
- Hungary: -24,5%
- Finland: -24,5%
Only three countries recorded an increase in the number of transactions:
- Cyprus: +31%
- Poland: +3,9%
- Ireland: +0,6%
Global residential transactions have also seen declines in recent years. In the second quarter of 2024, the first signs of stabilization appeared, however, at a total of 175 bn euro over the last 12 months, the volume remains 33% lower than in the second quarter of 2023.
According to the report "European Residential Markets 2024/2025" published by PATRIZIA, Europe’s share is stabilizing at around 22% of global transaction volume, down from over 30% in 2020-2021, but a significant improvement compared with the low point in 2023.
Property prices in Europe 2026
According to analysts, in 2026 a gradual increase in the number of transactions on the European real estate market can be expected. Further interest rate cuts should ease pressure on the sector and restore moderate growth.
The international advisory firm CBRE forecasts a 15% increase in investment activity in real estate in the United Kingdom and other major European markets. The company described 2025 as a "turning point" for the real estate sector.
Premium real estate in Europe
Agency Knight Frank in its forecasts for premium real estate for 2025 indicates Stockholm, Marbella and Madrid as growth leaders. The estimated increase in premium property prices in these locations exceeded 5%.
The Deloitte Property Index 2024 report also presents forecasts for changes in European housing markets. Experts predict that the main areas of change will concern:
- Approach to ESG criteria (31% of respondents)
- Rental market legislation (25%)
- Planning regulations (25%)
- Mortgage lending regulations (19%)
In the German market, transaction values are forecast to increase to EUR 40-42 billion in 2026, which would mean further growth compared with EUR 35 billion in 2024.
Real estate agencies in Europe
The European real estate agency market in 2023 looked as follows according to data Report Linker:
Number of real estate agencies in Europe:
- France: 64 780
- Spain: 47 220
- Italy: 35 390
- Germany: 32 310
The largest year-on-year increase in the number of real estate agencies was recorded in Portugal (5.69%).
Frequently asked questions where is the best place to invest in real estate in Europe?
Summary
Despite a slowdown in some countries, forecasts for 2026 indicate a gradual market recovery, supported by expected interest rate cuts.
For investors and potential buyers further decisions by central banks regarding interest rates and the overall economic situation in individual countries will be key. If you want to learn the details for a specific country, see our recommended articles below.
