EU House Prices Rise 4.7% Year-on-Year in Q2 2026, Eurostat Reports

European Property Growth Cools to 4.7%

European Union house prices rose 4.7% year-on-year in the second quarter of 2026, according to data published by Eurostat, slowing down from a 5.1% annual increase recorded in the first quarter of the year. Compared with the first quarter of 2026, residential property prices across the 27-member bloc increased by 1.2%.

Euro Area Values Match Moderation Trend

In the euro area, house prices increased by 4.0% in the second quarter of 2026 compared with the same period of the previous year, showing a deceleration from the 4.6% annual growth rate registered in the first quarter. On a quarterly basis, euro area house prices rose 1.1% from the first quarter to the second quarter of 2026.

Tracking the Broader Residential Index

The House Price Index measures price changes for all residential properties purchased by households, including flats, detached houses, and terraced houses, covering both newly built and existing properties regardless of previous ownership. National Statistical Institutes compile individual country figures, while Eurostat aggregates the data using gross domestic product market prices expressed in Purchasing Power Standards.

Sharp Divergence Across National Markets

Market conditions varied significantly across member states during the second quarter of 2026. Portugal recorded the strongest annual price increase at 16.5%, followed closely by Bulgaria at 15.5% and Lithuania at 14.3%.

Additional notable yearly gains were observed in Slovakia (13.6%), Croatia (12.7%), both Spain and Romania at 12.1%, Latvia (11.4%), and Hungary (10.2%). Conversely, annual declines were registered in only three countries: Finland dropped 2.7%, Luxembourg fell 2.2%, and France decreased 0.8%.

On a quarterly basis, prices fell in just two member states during the second quarter, with Hungary declining 1.4% and France dropping 0.8%. Lithuania posted the highest quarterly increase at 5.0%, followed by Bulgaria at 4.5% and Romania at 4.4%. Additional quarterly increases included Latvia at 3.9%, Portugal at 3.6%, Estonia at 3.5%, Spain at 3.4%, Austria at 3.3%, Slovenia at 3.0%, and Denmark at 2.8%.

Purchase Costs Outpace Rental Inflation

Across the 18 EU countries with available data, property values climbed at a quicker pace than rental rates when comparing the second quarter of 2026 to the 2025 yearly average. Over the same timeframe, EU house prices increased by 4.1% and rents rose 2.6%.

While house prices fell in Finland (-1.5%) and France (-1.4%) when measured against the 2025 average, rents increased across every EU country. The largest rent increases over that period were registered in Romania at 41.2%, Croatia at 22.1%, and Slovenia at 10.2%. The smallest rent rises occurred in Estonia and Finland at 0.1% each, along with Luxembourg at 1.2%.

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