The House Price Index is an important statistical indicator calculated by Eurostat. The index shows the change in prices of primary and secondary dwellings under contracts of sale and purchase during the period under study.
Eurostat collects and analyses quarterly house prices, rental values and reports from the statistical offices of EU member states.
Property price dynamics in the EU from 2011 to 2020
Between 2011 and 2015, the EU real estate market was relatively stable. Housing prices fell slightly in 2013, but have been rising steadily since 2014.
At the end of 2020, house prices increased in 23 out of 27 EU countries. Estonia and Luxembourg showed the biggest increase, while Greece, Italy, Spain, and Cyprus recorded price decreases.
Even the economic crisis and the coronavirus pandemic had no impact on prices. House prices in some countries fluctuated, but by the end of 2020 prices began to rise. In Greece, for example, the price increase slowed down by half compared to 2019. We talked about this in the article "Real estate prices in Greece in 2021".
House prices continued to rise in the first quarter of 2021. Luxembourg showed the highest dynamics: housing prices increased by 17% compared to the fourth quarter of 2020. Denmark ...+15.3%, Lithuania ...+12% and the Czech Republic ...+11.9% also stand out. Slight price declines were noted in Greece, Italy, Spain, and Cyprus.
Eurostat also noted that rental prices have risen in 25 EU countries: Estonia, Lithuania, and Ireland have the highest rates. In the region as a whole, rental prices increased by 15.3%.
EU house price index over the last 10 years
Property price dynamics in EU countries with investment programs
Six EU countries have public residence permit programs by investment: Austria, Cyprus, Greece, Malta, Portugal, and Spain. Eurostat has calculated an index for all of these countries except Greece. We have told you separately about house price dynamics in Greece and what prices are expected to be in 2021.
Here's a look at how property prices in five countries have changed from 2011 to 2020.
Increase in EU house prices over 10 years
|Country||House price index in 2011||House price index in 2020||Price fluctuations over 10 years|
|81,6||136,31||Growth of 70%|
|124,27||127,50||Growth of 2.5%|
|111,09||107,97||Drop of 3%|
|89,8||128,87||Growth of 43,5%|
|102,09||153,38||Growth of 50%|
The leaders were Austria and Portugal. Austria showed a price increase of 1.7 times and Portugal 1.5 times.
EU real estate is in demand from foreigners. Investors also more often choose the option to buy real estate in order to obtain a residence permit in the EU country. Because the real estate can be sold after 5 years and the investment can be recovered. For example, investors who bought a property under the residence permit program in Portugal in 2015 sold it for 1.5 times the price.
Immigrant Invest is a licensed agent for European residence permit programs by investment. If you want to move to one of the rated countries or travel freely in Schengen, seek advice from the experts of the investment programs.