In order to compile the House Price Index, Eurostat compares the prices of new and resale houses under sales contracts. This is the average figure for all EU countries.
Dynamics of prices for residential real estate in the EU
The average cost of residential properties grew until the end of the second quarter of 2011. Then the debt crisis began in the region, against the backdrop of which property prices fell. Since the beginning of 2015, the cost of residential real estate began to rise sharply.
House price growth continues into 2022, with the index up 10.5% year-on-year in the first quarter. And the increase in the average cost of housing for 12 years amounted to 44.7% in the European Union.
Rental prices for residential real estate have been growing steadily since 2010: during this time, rent has risen in price by 16.9%. In the first quarter of 2022, rent growth was 1.4% compared to the same period last year.
Price index for residential property and its rent in the EU from 2010 to 2022
All EU countries showed a positive trend in prices: in 17 of them, prices increased by more than 10% per year in March 2022. Residential real estate grew the most in value in the Czech Republic, Estonia and Hungary. The smallest rise in prices is observed in Finland, Italy and Cyprus. But for Cyprus and Italy, this is a success: last year, the average cost of housing in these countries fell.
Dynamics of housing prices in the EU in the first quarter of 2022
|Country||Price increase compared to Q1 2021|
How prices for residential real estate have changed in countries with investment programs
The index from Eurostat presents data on three EU countries in which investors can obtain a residence permit for the purchase of real estate. These are Portugal, Malta and Cyprus. Eurostat also calculated an index for Turkey, which offers foreigners citizenship by investment.
Turkey has become the undisputed leader: the cost of residential properties increased by 110% in the first quarter of 2022 on an annualized basis and by 641.35% over the past 12 years.
Dynamics of housing prices in countries with investment programs
|Country||Compared to Q1 2021||Compared to 2010|
|Turkey||+ 110%||+ 641,35%|
|Portugal||+ 12,9%||+ 70,12%|
|Malta||+ 6,7%||+ 53,25%|
|Cyprus||+ 1,1%||- 7,92 %|
The Central Bank of Turkey updated the residential property price index in February 2022. During the year, housing prices rose by 96.4% on average in the country.
Turkish home sales increased by 21.7% in the first quarter of 2022 compared to the same period in 2021. Among foreigners, demand increased by 45.1%, while they bought 4.5% of properties from all sales.
House prices in Portugal rose by 12.9% in the first quarter of 2022. Such data are provided by the National Institute of Statistics, INE. The number of foreign investors who bought real estate in the country increased by 79.1%.
Apartment prices in Malta rose by 6.1% in the first quarter of 2022, according to the country's National Statistical Office. The increase in house prices amounted to 9.5%.
The Central Bank of Cyprus confirms the data of Eurostat: the cost of residential real estate on the island rises in price for the first time in the last two years. Property prices rose 0.7% in the first quarter of 2022 and 1.5% year on year.
Eurostat has not published data on residential property prices in Greece. According to the latest data from the Central Bank, the cost of Greek properties increased by 75.8% from 2007 to the first quarter of 2022.
How to get citizenship in Turkey or residence permit in Portugal, Greece, Malta and Cyprus
To obtain citizenship, a residence permit or permanent residence for the purchase of real estate, you need to take part in the state investment program. Investors will need to pass due diligence, confirm the legality of income and compliance with the terms of the program.
The government of each state sets its own requirements for the minimum value of real estate.
Turkish citizenship - investments from $400,000. Investors can purchase housing or commercial facilities, a piece of land, a share in a real estate project. After three years, the object is allowed to be sold.
Residence permit in Portugal – investment from €280,000. This amount is provided for the purchase of an object older than 30 years in a sparsely populated area of the country. If an investor wants to buy a newer residential or commercial property, he needs to buy a property worth from €500,000 in other areas.
Residence permit in Greece - investments from €250,000. An investor can buy any object on the primary or secondary real estate market. If parents or grandchildren are included in the application, the minimum investment will increase to €500,000.
Permanent residence in Malta - investments from 300,000 €. To obtain a permanent residence permit, an investor buys a property worth:
- from €300,000 in the south of Malta or the island of Gozo;
- from €350,000 in other regions of the country.
The investor also has the right to rent property in the amount of 10,000 or €12,000 per year, depending on the region. The property will need to be rented for five years.
Permanent residence in Cyprus - investments from €300,000. An investor can buy one or two primary properties. He also pays VAT at a rate of 19%, but when buying a single home for his own residence, the rate is reduced to 5%.
Investment property in Turkey, Portugal, Greece, Malta and Cyprus
Immigrant Invest is a licensed agent for government programs in the EU and the Caribbean. If you want to become a resident of Portugal, Greece, Cyprus, Malta or obtain citizenship in Turkey, please contact investment program experts for advice.