Europe’s Home Sales Return to Growth

Europe’s housing market recovered part of its lost momentum in 2025, with transaction numbers increasing in most countries that supplied comparable data. Slovenia recorded the fastest growth, France passed one million sales, and declines were limited to Croatia, Bulgaria and Poland. The return of buyers, however, coincided with further price increases and did not resolve the continent’s affordability problem.

Sales increased across most reporting EU markets

The official dataset covers 18 European Union countries that voluntarily supplied housing transaction statistics. Sales increased in 15 of those countries and declined in three.

A broader Euronews comparison covers 20 European markets, including countries outside the EU, and reports growth in 17 of them. The result should therefore not be described as covering every European country or used to calculate a complete continent-wide transaction total.

The statistics cover purchases of new and existing apartments and houses where the buyer is a household. Commercial property, land and some transactions between companies are excluded.

Reporting is voluntary, meaning that comparable figures were available for France and Spain but not for several other major markets, including Germany and Italy.

Slovenia records the fastest increase

Housing transactions in Slovenia increased by 29.9%, the strongest result among countries with available data. Lithuania ranked second with growth of 22.8%, followed by Austria at 21.4% and Belgium at 20.2%.

Double-digit gains were also recorded in Luxembourg at 18.6%, Hungary at 17.3%, the Netherlands at 13.9%, Denmark at 12.7%, France at 11.2% and Portugal at 10.5%.

Latvia gained 9.2%, Finland 9% and Norway 8.3%. Sales in Spain increased by 5.4%.

Croatia recorded the largest decline at 4.1%. Transactions fell by 2.5% in Bulgaria and by 1.1% in Poland. Croatia was the only country in the comparison where sales declined in both 2024 and 2025.

Percentage growth conceals market size

A high annual growth rate does not necessarily indicate a large housing market. Slovenia led the ranking in percentage terms but recorded only about 11,000 transactions, the lowest absolute total among countries for which volumes were available.

France was the largest market, with more than one million homes changing hands during the year. The Netherlands recorded approximately 265,000 transactions.

Hungary, Belgium, Portugal and Norway each registered between 130,000 and 160,000 sales.

Percentage changes can be particularly volatile in smaller markets. A relatively modest increase in the number of properties sold can produce a large annual rate. Market comparisons therefore need to account for population, housing stock and absolute transaction volumes as well as percentage growth.

Low comparison bases amplified the recovery

The 2025 increase followed a prolonged slowdown caused by more expensive borrowing and deteriorating affordability. Housing transactions fell in 13 of the 16 reporting EU countries in 2023.

Conditions began to improve in 2024, when sales increased in 12 countries and declined in six. The steepest falls that year were recorded in Slovenia at 17.7%, Croatia at 13.9% and France at 9.4%.

Slovenia’s increase of almost 30% in 2025 therefore partly represents a rebound from the previous year’s contraction. France also returned to approximately its 2023 transaction level after its 2024 decline was followed by growth of 11.2%.

The recovery started earlier in Luxembourg, Hungary and the Netherlands. Transactions increased by 47.1%, 34.8% and 17% respectively in 2024 and continued to rise, at slower rates, in 2025.

Lower policy rates brought buyers back

The gradual easing of monetary policy was one factor behind the recovery. The European Central Bank’s deposit facility rate stood at 3% at the beginning of 2025. Several reductions brought it to 2% in June, where it remained until the end of the year.

Changes in policy rates do not pass through to mortgage borrowers immediately or equally across countries. Lending conditions depend on bank competition, interest-rate fixation periods, borrowers’ finances and the design of national mortgage systems.

The composite cost of new housing loans in the euro area was approximately 3.3% in both June and November 2025. Borrowing remained considerably more expensive than before the inflation and energy shock, but greater rate stability gave households more certainty and allowed some postponed demand to return.

Higher sales coincided with rising prices

The recovery in transaction numbers did not make homes cheaper. EU house prices were 5.5% higher in the fourth quarter of 2025 than a year earlier. Annual growth remained at 5.1% in the first quarter of 2026.

At the end of 2025, Hungary recorded the strongest annual house-price increase at 21.2%, followed by Portugal at 18.9% and Croatia at 16.1%.

Croatia illustrates the difference between market activity and prices. Transaction numbers fell by 4.1% in 2025, yet house prices were 14.3% higher in the first quarter of 2026 than a year earlier.

Fewer sales do not automatically produce lower prices. Restricted supply and continued demand for particular types of housing can support valuations even when the number of buyers declines.

France recovers without a price surge

France recorded one of the clearest market reversals. Transactions fell by 9.4% in 2024 before rising by 11.2% in 2025 and exceeding one million homes.

Prices were almost unchanged. Between the first quarters of 2025 and 2026, French housing values increased by only 0.1%.

The combination of stable prices and rising transactions may indicate that buyers returned after postponing purchases during the high-rate period. Sellers may also have adopted more realistic valuations as expensive credit restricted purchasing power.

Spain maintained positive sales growth for a second consecutive year. Its 5.4% increase was more moderate than Slovenia’s or Austria’s, but it suggested comparatively resilient demand rather than a sudden rebound from a severe decline.

Restricted construction continues to limit supply

Lower financing costs revived demand faster than the construction industry could expand housing supply. High material, labour, land and financing expenses continue to delay or prevent new projects.

The imbalance creates a difficult outcome for buyers. More households regain access to mortgages, but the number of available homes does not increase at the same pace. Competition can then push prices higher and offset some of the benefit from cheaper borrowing.

For investors, rising transaction numbers can improve liquidity by making properties easier to sell. For owner-occupiers, stronger activity is not necessarily positive when returning demand accelerates price growth.

As International Investment experts report, the 2025 figures confirm a recovery in European housing turnover but do not indicate that the housing crisis is ending. Transactions increased after two years of weak activity, while prices continued to climb and construction failed to close the supply gap. The greatest risk lies in markets where sales and prices are both increasing at double-digit rates: lower mortgage costs may translate into further price inflation rather than improved affordability. The comparison also remains incomplete because several major European economies do not provide data for this voluntary dataset.

FAQ: European home sales

In how many European countries did home sales increase?

Sales rose in 15 of the 18 EU countries covered by the official dataset. A broader comparison of 20 European markets found increases in 17 countries.

Which country recorded the strongest sales growth?

Slovenia ranked first with an increase of 29.9%, followed by Lithuania at 22.8%, Austria at 21.4% and Belgium at 20.2%.

Which country recorded the most transactions?

France was the largest reporting market, with more than one million homes sold in 2025.

Where did home sales decline?

Transactions fell by 4.1% in Croatia, 2.5% in Bulgaria and 1.1% in Poland.

Why did sales recover in 2025?

Demand was supported by lower and more stable interest rates, improved certainty for borrowers and the return of households that had postponed purchases when mortgages were more expensive.

Did higher sales cause house prices to fall?

No. EU house prices increased by 5.5% annually in the fourth quarter of 2025. Several countries recorded double-digit price growth.

Why does the dataset not cover all of Europe?

Countries provide housing transaction statistics voluntarily. Comparable data are unavailable for several major markets, including Germany and Italy.

What qualifies as a housing transaction?

The data cover purchases of new and existing apartments and houses where the buyer is a household.