Europe offers an array of unique places to live and work, but where are real estate prices rising the fastest? According to research by the European Commission, the cost of buying new
property increased by 45% from 2010 to 2022, and from 2015 onwards, this growth has accelerated. Despite the pandemic, the European property market maintained positive growth, driven by ultra-low interest rates and increased demand.
The latest figures by Eurostat show that fifteen countries recorded an annual increase in real estate prices in the third quarter of 2022, with Estonia leading the charge with the highest increase at 24.2%. Hungary followed with an annual growth rate of 21%, and Lithuania came in third with a growth rate of 19.3%.
Tallinn, the capital city of Estonia, performed exceptionally well, with real estate prices increasing across the country. Homeowners looking for real estate in Tallinn would pay over €2,300 per square metre, on average. The eastern part of Budapest has also seen the fastest growth in Hungary's property market, driven by high demand and a lack of supply. Lithuania's real estate market reached record levels in 2021, and apartment prices in the secondary market grew by 10%, according to Delfi reports.
In the UK, London continued the trend of growing real estate prices, with the average house price increasing by 15% to £687,621 (around €781,000), compared to flats growing only by 3.5% to £409,812 (around €465,000).
The slow supply of new homes and house price increases in big cities mean that rental prices in European cities have also been climbing. According to Eurostat's data, it can take over 20 years on average wages to buy a flat in Prague, Bratislava, and Paris. In contrast, those in Dublin, Brussels, and Nicosia could step on the property ladder in less than 10 years.
Getting on the property ladder in Europe can be a challenge depending on where you want to move, but where do people want to move to? The Expat Insider 2022 revealed Portugal to be a popular destination, with its sunny beach houses, while Brussels offers luxury flats.
In conclusion, while the European property market has maintained positive growth, prices have been rising at varying rates in different countries. Estonia, Hungary, and Lithuania have experienced the highest increases in real estate prices, while London has continued the trend of growing prices in the UK. However, getting on the property ladder can be a challenge depending on where you want to move, and it can take over 20 years on average wages to buy a flat in certain cities. Photo by Bpa at English Wikipedia.