The cost of a square meter in the European Union has begun to decline. Demand for real estate is increasing, even with high interest rates on loans. The European Statistical Committee summed up the first quarter of 2023 and named the countries with the highest rise in housing prices.

According to the European Statistical Committee, the beginning of 2023 was marked by a decline in property prices. Compared to the fourth quarter of 2022 in the first quarter of 2023, the average cost of a square meter decreased by 0.7%. Meanwhile, rents in the EU countries grew on average by 0.9%.

TOP countries where real estate prices have risen:

  • Croatia (14.0%),
  • Lithuania (+13.1%)
  • Bulgaria (+9.5%)

Top countries where prices fell:

  • Sweden (-6.9%),
  • Germany (6.8%),
  • Denmark (6.2%),
  • Finland (-5.1%),
  • Luxembourg (1.5 per cent)

Eleven Member States experienced price declines compared to the previous quarter. The largest increases were in Denmark (+2.5%), Hungary (+2.2%), Croatia, and Cyprus (both +2.0%). The largest declines were registered in Luxembourg (4.1%), Germany (-3.1%), and Finland (1.8%).

table for calculating the value of real estate in European Union (EU) countries

In terms of overall trends in housing prices over a longer period, Eurostat reported that housing prices had risen in 24 EU countries since 2010. They more than doubled in Estonia (+200%), Hungary (+180%), Lithuania (+146%), Latvia (+132%), Luxembourg (+126%), the Czech Republic (+123%) and Austria (+122%). The decline was observed in Greece (14%), Italy (-9%), and Cyprus (-2%).

A comparison of the cost of living in the ten largest capitals worldwide