House prices across Europe continued their steady climb at the end of 2025, with growth holding firm despite signs of slowing momentum in some markets.
According to new data from Eurostat, residential property prices rose by 5.1% in the euro area and 5.5% across the European Union in the fourth quarter of 2025 compared with the same period a year earlier. This marks a continuation of the trend seen in the previous quarter, when annual growth reached similar levels.
On a quarterly basis, however, the pace of growth eased slightly. Prices increased by 0.6% in the euro area and 0.8% across the EU between October and December, suggesting a gradual cooling after stronger gains earlier in the year.
Diverging trends across Europe
While most EU countries saw house prices rise, the picture across the bloc remains uneven.
Out of the Member States with available data, only Finland recorded an annual decline, with prices falling by 3.1%. In contrast, several countries in Central and Southern Europe posted double-digit growth.
Hungary led the surge with a striking 21.2% increase year-on-year, followed by Portugal at 18.9% and Croatia at 16.1%. These figures highlight ongoing demand pressures and limited housing supply in these markets.
Short-term movements show mixed signals
Compared with the previous quarter, price movements were more mixed. Three countries—France, Finland and Estonia—recorded declines, while prices remained flat in Cyprus.
Elsewhere, growth continued, with Slovenia posting the strongest quarterly increase at 5.1%, followed by Hungary (4.2%) and Portugal (4.0%).
Broad trend remains upward
Despite regional disparities and some quarterly slowdowns, the overall trajectory of Europe’s housing market remains upward. Many countries have experienced sustained price growth throughout 2025, driven by structural factors such as housing shortages, rising construction costs and resilient demand.
The data also show that while price increases are becoming more moderate in some Western European markets, stronger growth persists in parts of Central and Eastern Europe.
Looking ahead, Eurostat is set to publish its next update, covering the first quarter of 2026, on 2 July 2026—offering further insight into whether the market is stabilising or continuing its upward trajectory.