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Price divergence in the EU
House prices in the European Union (EU) experienced a slight drop of 0.3% in the fourth quarter of 2023, compared to the third quarter, according to data published by Eurostat. This is the first time that house prices have fallen in two years, after a sustained period of growth.
In contrast, rents in the EU continued to increase in the fourth quarter of 2023, with an increase of 0.6% compared to the previous quarter. This marks a 3.0% annual increase in rental prices.
Divergent evolution
House prices and rents in the EU have followed divergent trajectories since 2011. While rents have risen steadily, house prices have experienced fluctuations, including falls and faster increases.
Historical increases
Compared to the fourth quarter of 2010, house prices in the EU have increased by 48%, while rents have risen by 23%. House prices have more than doubled in Estonia, Hungary, Lithuania, Latvia, the Czech Republic, Austria and Luxembourg.
Differences between countries
Eurostat data also reveals significant differences between EU countries. Among those for which data is available, house prices rose more than rents in 19 countries. On the other hand, decreases were observed in Italy (-8%) and Cyprus (-3%).
Rents increased in 26 EU countries, with the largest increases in Estonia (+207%), Lithuania (+172%) and Ireland (+102%). The only country with a drop in rental prices was Greece (-19%).
For more information, you can consult the Eurostat publication.
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