Where did housing prices and rents increase the most in 2024 in Europe? - Here's where Albania ranks!
The rising cost of living is the main cause of concern for European citizens, according to a 2024 Eurobarometer survey. The finding is perhaps not surprising as house prices continue to rise across the EU. In the fourth quarter of 2024, house prices in the region rose by 4.9%, while rents increased by 3.2% compared to the same period in 2023. During 2024, the annual growth of house prices in the EU was 3.3% and rents increased by 3.1%.
Price fluctuations varied across Europe, with some countries even experiencing declines. But which European countries experienced the highest increases in house prices and rents in 2024? According to Eurostat, in 2024, the average annual change in house prices across the EU ranged from a decline of 5.2% in Luxembourg to an increase of 16.5% in Bulgaria.
House prices fell in France and Germany in 2024
In addition to Luxembourg, house prices decreased in France (–3.7%), Finland (–3.5%), Germany (–1.6%) and Austria (–0.2%) in 2024. In addition to Bulgaria, significant price increases were seen in Poland (15.0%), Hungary (12.8%) and Croatia (10.4%). Large jumps were also recorded in Portugal (9.1%), Spain (8.5%), Ireland (8.5%) and the Netherlands (8.2%).
According to the ONS, average annual house price inflation in the UK was 4.6% in the 12 months to December 2024. Eastern and Southeastern Europe tend to dominate the top of the rankings, recording large increases, while Western and Northern European countries occupy the lower end.
Comparing the last quarters of 2024 and 2023, house price growth followed a similar pattern to the average changes for the whole year. Within the EU, Bulgaria recorded the highest quarterly growth with 18.3%, followed by Hungary (13.0%) and Portugal (11.5%).
Among the four largest EU economies, Spain had the highest growth at 11.3%, while France recorded a decline of 1.9% over the same period. Besides France, Finland (–1.9%) was the only other EU country to experience a decline. The year-on-year change in this quarter was 1.9% in Germany and 4.5% in Italy.
Turkey stands out as an extraordinary country
Turkey, which has experienced high inflation in recent years, stood out as an important outlier among non-EU countries on the list, including several candidate countries and EFTA members. In 2024, housing prices in Turkey increased by 41.5%, with a year-on-year increase of 28.5% recorded in the fourth quarter.
Rent growth lags slightly behind housing prices
In the EU, rent growth remained slightly below house price growth, both in the annual average for 2024 and in the year-on-year change for the last quarter. The average annual rent growth was 3.1%, while the year-on-year growth in the last quarter of 2024 was 3.2%. For house prices, these figures were 3.2% and 4.9% respectively.
Among EU countries, the average annual change in rents ranged from a 0.9% decline in Estonia to a 12.4% increase in Hungary. Estonia was the only country where rents decreased.
Eastern European and Balkan countries recorded the highest rent growth, while Western and Northern European countries experienced low or stagnant rent growth. The largest EU economies, Germany (2.2%) and France (2.3%), both recorded rent growth below the EU average, while Italy slightly exceeded it with 3.2%. As can be seen from the graphs below, our country ranks among the last countries, i.e. with the lowest increase in rents and house prices throughout 2024.
Annual rent change (2024)
Average annual change (2024 vs 2023)
Year-on-year change (Q4 2024 vs Q4 2023)
UK rents almost double house price growth
In the UK, rents rose at almost double the rate of house prices. Average private rents rose by 9.0% in the 12 months to December 2024, compared with a 4.6% increase in house prices over the same period. In the EU, year-on-year rent growth for the last quarter of 2024 ranged from 1.1% in Lithuania to 11.3% in Hungary.
Similar to housing prices, Turkey emerged as a clear outlier in rent growth, with even greater inequality. In 2024, the average annual rent increase reached 117.2%, while the year-on-year change in the last quarter was 109%.
To better understand property trends in Turkey, it is more useful to consider real (inflation-adjusted) changes, as wages have increased significantly even in nominal terms in recent years. For example, the nominal net minimum wage increased by 71% in 2024 compared to 2023.
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