Hungary Posts EU’s Highest House Price Growth

Hungary recorded the largest annual increase in house prices in the European Union in the third quarter of 2025, according to Eurostat data. Residential property prices in the country rose by 21.1% compared to the same period a year earlier.

The sharp rise places Hungary at the top of the EU ranking, significantly outpacing other member states and highlighting continued strong demand in the domestic housing market.

EU House Price Trends in Q3 2025

Following Hungary, the strongest year-on-year increases were reported in Portugal at 17.7%, Bulgaria at 15.4%, Croatia at 13.8%, and Spain at 12.8%. These markets continue to benefit from constrained supply and resilient buyer demand, particularly in key urban centers.

Finland was the only EU country to record a year-on-year decline in house prices, with a 3.1% decrease compared to the third quarter of 2024.

Quarterly Changes Across the EU

On a quarterly basis, Latvia registered the highest increase in Q3 2025, with house prices rising by 5.2%. Slovakia followed with a 4.9% gain, while Portugal recorded a 4.1% increase.

The largest quarterly declines were observed in Luxembourg, where prices fell by 3.1%, followed by Finland at 2.2% and Slovenia at 1.1%.

Diverging Market Dynamics in Europe

The strong performance in Hungary and parts of Central and Southern Europe reflects limited housing supply, sustained investment demand, and inflationary pressures that have pushed up construction and financing costs.

At the same time, varying price trends across the EU underscore the uneven nature of Europe’s residential property cycle, with some markets continuing to expand while others enter corrective phases.

As experts at International Investment report, Hungary’s rapid house price growth increases the risk of localized overheating, though continued demand and structural supply constraints may limit the scale of any potential correction. Investors are advised to monitor macroeconomic conditions and interest rate developments across the EU when assessing opportunities.