Eurozone real estate market diverges as Latvian house prices rise contrary to overall trend
European Housing Market Trends Q1 2024: A Snapshot
The European housing market has shown a mixed picture in the first quarter of 2024, with some countries experiencing significant growth while others have seen a decline.
Poland registered the largest increase in house prices compared to the same quarter of the previous year, with a rise of 18.0%. This growth was followed closely by Bulgaria, which saw a 16.0% increase, and Lithuania with a 9.9% rise.
Norway, on the other hand, recorded the highest growth in house prices in the first quarter of 2024. The market was driven by strong increases in cities like Oslo, where multifamily housing prices surged by 5.6% compared to the previous quarter. This growth was attributed to a continuing shortage of housing supply.
However, not all European countries have seen positive growth. Among the Member States for which data are available, seven showed an annual decrease in house prices in the first quarter of 2024. The largest falls were registered in Luxembourg (-10.9%), Germany (-5.7%), and France (-4.8%).
In the EU as a whole, house prices rose by 1.3% in the first quarter of 2024 compared to the same quarter of the previous year. However, this growth was less than the 1.8% increase seen in the fourth quarter of 2023. The euro area followed a similar trend, with house prices falling by 0.4% in the first quarter of 2024 compared to the same quarter of the previous year, and a 0.1% decrease compared to the fourth quarter of 2023.
Looking at quarterly changes, the highest increases were recorded in Bulgaria (+7.1%), Hungary (+5.1%), and Poland (+4.3%). Conversely, the largest falls in house prices compared to the previous quarter were registered in Denmark (-2.5%), France (-2.1%), and Slovakia (-1.7%).
In the second quarter of 2024, house prices decreased in eight Member States compared to the third quarter. However, Belgium bucked this trend, with house prices increasing by 0.7% compared to the third quarter. Latvia also saw an increase in house prices, with a 2.7% rise compared to the final quarter of 2023.
Among the Member States for which data are available, two showed a decrease in house prices in the second quarter of 2024. This indicates a potential slowdown in the housing market in some parts of Europe.
In conclusion, while the European housing market has shown some positive growth in the first quarter of 2024, the picture is not uniform across all countries. Some countries, like Poland and Bulgaria, have seen significant increases, while others, like Luxembourg and France, have experienced declines. As we move into the second quarter of 2024, it will be interesting to see how these trends continue to evolve.
