Which countries are experiencing the fastest real estate price growth? Data for the world and separately for the European Union. 

In the second quarter of 2023, interest rates on loans, which had previously skyrocketed in almost all countries, fell from 10.9% to 3%. This trend is leading to an increase in housing costs globally.

Other factors are also contributing to this trend:

  • Population growth. The increase in the number of people in need of housing puts pressure on the market, raising demand and prices.
  • Supply shortage. The lack of available properties also raises prices. Limited supply encourages competition among buyers.
  • Construction delays. Delays in new construction projects can exacerbate the housing shortage, driving up the cost of existing properties.

This is how housing prices in popular investment countries have risen by the second quarter of 2023 (according to Knight Frank):

Country

Annual dynamics of nominal prices in %

Turkey

96%

Lithuania

15%

Croatia

14%

Greece

14%

North Macedonia

12,9%

Mexico

11,5%

Hungary

9,7%

Bulgaria

9,5%

Estonia

9,2%

Cyprus

9,0%

Experts predict that in future markets, demand will strongly exceed supply, and prices will especially start to rise at the end of 2024.

How things are going in the European Union

As for the EU, in the second quarter of this year, housing prices there increased by 0.3%, and rents increased by 0.7% in quarterly terms. Such data are shared by Eurostat.

The annual dynamics look different: housing prices decreased (by 1.1%), but rent prices increased by 3%. If we analyze a longer period, over the past 13 years, the cost of housing in the EU countries has increased by 46% and rent by 21%.

The record-breakers in the growth of housing prices among the EU countries are Estonia (+211%), Hungary (+180%), Lithuania (+152%), Latvia (+144%), the Czech Republic (+122%), Luxembourg, and Austria (+120% in both). Negative growth was noted in Greece (-14%), Italy (-8%), and Cyprus (-3%).