An IMGlobalWealth.news Report
Barely six months after interest rates began to fall and buyer sentiment improved across much of Europe, the continent’s housing markets are showing sharp differences in pace. The main battleground is in the volume of transactions and the direction of prices.
Overall, home sales across the European Union grew by around 10 percent year on year in the second quarter of 2025, according to Eurostat. Yet this headline figure conceals major variation between countries. Four states recorded declines: Ireland, down by 10 percent; Malta, by 6.2 percent; Hungary, by 5.7 percent; and Finland, by 5.6 percent. At the other end of the scale, Luxembourg posted an extraordinary rise of 86.6 percent, albeit from a small base, followed by Slovenia with 34.8 percent and Lithuania with 24.4 percent.
“Differences in policy, affordability, and supply remain the key factors shaping the road ahead”
Experts attribute these disparities to three main factors: affordability, supply, and the timing of monetary easing. In Ireland, the ten per cent decline reflects stretched affordability and persistently low levels of supply, according to Kate Everett-Allen of Knight Frank. Meanwhile, countries such as Portugal and Belgium have seen government schemes aimed at helping first-time buyers stimulate demand, though often with the side effect of pushing prices higher.
Across the euro area, the European data reveal a generally positive picture. House prices rose by 5.1 percent year on year in the second quarter of 2025, and by 5.4 percent across the EU as a whole. Portugal led the table, with prices increasing by roughly 17 percent compared to the previous year. Bulgaria and Hungary followed closely, each with growth above 15 percent. In contrast, major economies such as Germany experienced a more modest rise of around 3 percent.
France remains the largest market by transaction numbers, recording nearly 245,000 home sales during the second quarter of 2025. The Netherlands ranked second, with approximately 63,700 transactions. While official Eurostat data is not yet available for Germany and the United Kingdom, reports indicate that falling mortgage rates in Britain have supported higher volumes, whereas Germany continues to struggle with low building permits and restricted supply.
In summary, Europe’s housing market is recovering but unevenly. Countries such as Portugal, Bulgaria, and Slovenia are leading the rebound, while Ireland, Malta, Hungary, and Finland continue to lag. Differences in policy, affordability, and supply remain the key factors shaping the road ahead.
