Home sales in Europe: Where did they rise most in 2025?

European Property Transactions Show Broad Recovery in 2025

Strong Growth Across Multiple Markets

usagevpn.com – The European real estate sector demonstrated renewed vitality throughout 2025, with residential transactions expanding in the majority of nations despite persistent upward pressure on property valuations. According to Eurostat figures, the variation in annual sales performance proved substantial, spanning from a 4.1 percent contraction in Croatia to an impressive 29.9 percent surge in Slovenia. Belgium and Austria emerged as particularly strong performers, both achieving annual sales growth exceeding twenty percent. The European Central Bank has identified real estate as the primary component of household wealth within the eurozone, though buyer motivations differ considerably. While numerous purchasers acquire properties for personal residence, a growing segment views real estate as a vehicle for investment purposes.

Key Drivers Behind Market Expansion

Several interconnected factors shape residential property transactions across the continent. Mikk Kalmet, a real estate advisor at Global Property Guide, explained to Euronews Business that mortgage affordability, prevailing interest rates, household income levels, employment conditions, consumer confidence, and available housing supply all play critical roles. The stabilization of Euribor and other banking interest rates during late 2024 provided greater predictability for potential buyers who had previously hesitated amid economic uncertainty. This shift in financing conditions appears to have released pent-up demand accumulated during the period of elevated borrowing costs.

Lithuania led with a 22.8 percent increase, followed by Austria at 21.4 percent and Belgium at 20.2 percent. Luxembourg achieved an 18.6 percent rise, while Hungary recorded 17.3 percent growth. The Netherlands experienced a 13.9 percent increase, Denmark saw 12.7 percent expansion, France registered 11.2 percent growth, and Portugal achieved 10.5 percent. Latvia, Finland, and Norway each approached the ten percent threshold with increases of 9.2 percent, 9 percent, and 8.3 percent respectively.

Markets Experiencing Contraction

Croatia stood out as the sole nation recording declines across both 2024 and 2025, with sales falling for the fourth consecutive year. Bulgaria and Poland also experienced modest reductions, registering declines of 2.5 percent and 1.1 percent respectively. This represents a notable improvement from 2024, when six countries witnessed falling home sales compared to just three in 2025. Kalmet emphasized that Croatia's persistent downturn highlights how domestic factors continued influencing market performance despite the wider European recovery trend.

The Adriatic nation presents an interesting paradox. While transaction volumes declined, property valuations surged dramatically. House prices climbed 14.3 percent between the first quarters of 2025 and 2026, marking the fourth-highest increase across Europe. Rental markets experienced even stronger momentum, with rents rising 39.1 percent over the same timeframe, representing the continent's most robust rental growth.

Transaction Volumes and Market Size

Among the fourteen nations with available data, France dominated in absolute terms, recording over one million residential sales in 2025. French property valuations remained remarkably stable, increasing by merely 0.1 percent between the first quarters of 2025 and 2026. The Netherlands saw 265,000 homes change ownership, while Hungary, Belgium, Portugal, and Norway each recorded between 130,000 and 160,000 transactions. Slovenia, despite posting the highest percentage growth, recorded the lowest volume at just 11,000 sales.

Kalmet observed that percentage increases often appear more pronounced in smaller markets, though countries like Slovenia, Lithuania, Belgium, and Hungary demonstrated particularly strong performance. Meanwhile, high construction costs and constrained building activity continue to limit housing supply across much of Europe, potentially supporting future price appreciation even as transaction volumes fluctuate.