Europe’s housing market regained significant momentum throughout 2025, a year characterized by a broad recovery in activity even as property prices continued their upward trajectory across most of the continent. According to Mikk Kalmet, a real estate advisor at Global Property Guide, the uptick in transactions suggests that buyers are responding to improved financing conditions and the release of demand that had been postponed during the previous period of higher interest rates.
As Euribor and other bank interest rates stabilized, individuals who had previously hesitated due to market uncertainty gained greater predictability from late 2024 onwards.
Data from Eurostat highlights diverse market performances, with annual changes in sales ranging from a 29.9% increase in Slovenia to a 4.1% decline in Croatia. While Slovenia recorded the highest percentage growth, it also saw the lowest absolute volume of sales at 11,000 units. Several smaller markets, including Lithuania, Belgium, and Hungary, also experienced robust growth, though experts note that percentage fluctuations can appear more pronounced in smaller economies.
Lithuania saw sales rise by 22.8%, followed by Austria at 21.4% and Belgium at 20.2%.
Double-digit growth was also observed in Luxembourg (18.6%), Hungary (17.3%), the Netherlands (13.9%), Denmark (12.7%), France (11.2%), and Portugal (10.5%). Meanwhile, Latvia (9.2%), Finland (9%), and Norway (8.3%) experienced increases nearing 10%. Among the continent's largest economies, France led the way with over one million homes sold in 2025, marking a notable turnaround from a decline in 2024.
In the Netherlands, 265,000 homes changed hands, while Hungary, Belgium, Portugal, and Norway each recorded sales volumes between 130,000 and 160,000.
Despite the general recovery, some nations faced continued challenges. Croatia, Bulgaria, and Poland recorded sales declines of 4.1%, 2.5%, and 1.1% respectively. Notably, Croatia experienced a decline for the fourth consecutive year, remaining the only country to record drops in both 2024 and 2025, which suggests that domestic factors continue to influence its market performance. Spain, representing another major economy, maintained resilience with a 5.4% increase in sales.
The European Central Bank identifies real estate as the primary source of household wealth within the eurozone. While market activity has strengthened, structural issues persist; Kalmet noted that high construction costs and limited building activity continue to restrict the supply of available homes across the region.
Additionally, while sales volumes have increased, price stability remains varied, with French house prices rising by only 0.1% between the first quarters of 2025 and 2026.
