Key points and trends are highlighted:
1. General trends:
- After a sharp fall in house prices in 2011–2013, a recovery began in 2015. This growth continued until the third quarter of 2022.
- A period of price decline began in the fourth quarter of 2022, which lasted for two consecutive quarters.
- In 2023, house prices began to rise again in the second and third quarters, but there was a slight decline in the fourth quarter.
- In 2024, prices continued to rise.
2. Annual growth rates:
- The highest annual growth rate of the HPI was recorded in the first quarter of 2022 (+9.8% for the euro area and +10.5% for the EU).
- The minimum values were recorded at the beginning of 2013 for both areas.
- From 2016 to 2019, there was stability in annual growth rates (from +3.5% to +5.0%).
3. Inflation impact:
- Deflated HPI shows that between 2010 and 2014, house prices did not keep up with inflation.
- Since 2015, prices began to grow faster than inflation, but in 2023, in the context of high inflation, there was a decline of 7.1% in annual deflated house prices.
4. Regional differences:
- In the third quarter of 2024, 4 countries showed an annual decline in prices, while 22 countries showed positive dynamics.
- The largest decline was recorded in France, Finland and Luxembourg, while the largest growth was observed in Bulgaria, Poland and Hungary.
5. Quarterly changes:
- On a quarterly basis, in 2024, prices increased in 24 countries and decreased in 2.
These data and analyses show how the residential property market in the Eurozone and the EU has changed over a range of time periods, and highlight the need to take inflation into account for a more accurate analysis of house price changes.
The following conclusions can be drawn from the information provided:
1. From 2016 to 2021, house prices in the EU increased faster than inflation. In 2022, house prices increased slower than inflation. In 2023, house prices increased less than inflation in 22 EU countries and increased more than inflation in 5 EU countries (Bulgaria, Greece, Croatia, Lithuania and Portugal).
2. From 2010 to Q3 2024, rents in the EU increased by 26.0% and house prices by 54.1%. In Q3 2024, rents increased by 3.2% and house prices by 3.8% in the EU compared to Q2 2023.
3. In Q3 2024, rents in the EU increased by 0.9% and house prices increased by 1.4% compared to Q2 2024.
4. House prices and rents in the EU followed a similar pattern between 2010 and Q2 2011, but have evolved differently since then. While rents have increased steadily, house prices have followed a more volatile pattern, with periods of decline followed by rapid increases.
5. House prices have increased more than rents in some EU countries. From 2010 to the third quarter of 2024, house prices have increased more than rents in 20 EU countries. Over the same period, house prices have more than tripled in Hungary and Estonia, and more than doubled in Lithuania, Latvia, the Czech Republic, Austria, Portugal, Bulgaria and Luxembourg.
6. From 2010 to the third quarter of 2024, rents have increased in 26 EU countries. The highest increases were recorded in Estonia, Lithuania, Ireland and Hungary.
7. The weights for calculating house price indices are calculated based on the GDP of the previous year and the HPI index of the fourth quarter of the respective countries.
8. The HPI indices for the euro area and the EU are calculated as a weighted average of the national HPI indices. The weights used in 2024 are based on 2023 GDP and the 2023 Q4 HPI.
9. The 2023 GDP and the 2023 Q4 HPI were used to calculate the country weights used to calculate the 2024 EU HPI indices.
10. Eurostat publishes separate indices for newly built and existing housing. The distinction between newly built and existing housing is relevant because of the often different price dynamics.
1. General trends:
- After a sharp fall in house prices in 2011–2013, a recovery began in 2015. This growth continued until the third quarter of 2022.
- A period of price decline began in the fourth quarter of 2022, which lasted for two consecutive quarters.
- In 2023, house prices began to rise again in the second and third quarters, but there was a slight decline in the fourth quarter.
- In 2024, prices continued to rise.
2. Annual growth rates:
- The highest annual growth rate of the HPI was recorded in the first quarter of 2022 (+9.8% for the euro area and +10.5% for the EU).
- The minimum values were recorded at the beginning of 2013 for both areas.
- From 2016 to 2019, there was stability in annual growth rates (from +3.5% to +5.0%).
3. Inflation impact:
- Deflated HPI shows that between 2010 and 2014, house prices did not keep up with inflation.
- Since 2015, prices began to grow faster than inflation, but in 2023, in the context of high inflation, there was a decline of 7.1% in annual deflated house prices.
4. Regional differences:
- In the third quarter of 2024, 4 countries showed an annual decline in prices, while 22 countries showed positive dynamics.
- The largest decline was recorded in France, Finland and Luxembourg, while the largest growth was observed in Bulgaria, Poland and Hungary.
5. Quarterly changes:
- On a quarterly basis, in 2024, prices increased in 24 countries and decreased in 2.
These data and analyses show how the residential property market in the Eurozone and the EU has changed over a range of time periods, and highlight the need to take inflation into account for a more accurate analysis of house price changes.
The following conclusions can be drawn from the information provided:
1. From 2016 to 2021, house prices in the EU increased faster than inflation. In 2022, house prices increased slower than inflation. In 2023, house prices increased less than inflation in 22 EU countries and increased more than inflation in 5 EU countries (Bulgaria, Greece, Croatia, Lithuania and Portugal).
2. From 2010 to Q3 2024, rents in the EU increased by 26.0% and house prices by 54.1%. In Q3 2024, rents increased by 3.2% and house prices by 3.8% in the EU compared to Q2 2023.
3. In Q3 2024, rents in the EU increased by 0.9% and house prices increased by 1.4% compared to Q2 2024.
4. House prices and rents in the EU followed a similar pattern between 2010 and Q2 2011, but have evolved differently since then. While rents have increased steadily, house prices have followed a more volatile pattern, with periods of decline followed by rapid increases.
5. House prices have increased more than rents in some EU countries. From 2010 to the third quarter of 2024, house prices have increased more than rents in 20 EU countries. Over the same period, house prices have more than tripled in Hungary and Estonia, and more than doubled in Lithuania, Latvia, the Czech Republic, Austria, Portugal, Bulgaria and Luxembourg.
6. From 2010 to the third quarter of 2024, rents have increased in 26 EU countries. The highest increases were recorded in Estonia, Lithuania, Ireland and Hungary.
7. The weights for calculating house price indices are calculated based on the GDP of the previous year and the HPI index of the fourth quarter of the respective countries.
8. The HPI indices for the euro area and the EU are calculated as a weighted average of the national HPI indices. The weights used in 2024 are based on 2023 GDP and the 2023 Q4 HPI.
9. The 2023 GDP and the 2023 Q4 HPI were used to calculate the country weights used to calculate the 2024 EU HPI indices.
10. Eurostat publishes separate indices for newly built and existing housing. The distinction between newly built and existing housing is relevant because of the often different price dynamics.
