The most expensive cities for buying real estate are Paris and Munich, while prices per square meter in Bulgaria, for example in Varna and Burgas, are considerably lower. The European real estate market is seeing a rise in rents and increased demand, especially in the residential sector, due to limited supply of new housing units.
Cities such as Barcelona, Lisbon, Berlin, Madrid, and Milan are among the most attractive for buyers due to good rental yields and quality of life. Also, some Eastern European cities like Riga, Warsaw, and Podgorica show very high rental yields and significant price increases.
Across Europe, real estate prices have been rising, with an average increase of about 48-53% over the last ten years, with certain countries like Hungary experiencing up to a threefold increase. However, in some countries like Finland, prices have been more stable.
The European real estate market is expected to continue growing, driven by lower interest rates, limited supply of new properties, and interest from institutional investors, especially in the rental housing segment.
If needed, I can provide further details on specific real estate markets, prices, trends, and investment opportunities in certain European countries or cities.
Expected price movement of real estate in the European Union until 2028 predicts gradual growth but with differences between countries. The general trend points to continued price growth, though at a lower rate compared to previous years, with expected slowing momentum compared to the period from 2015 to 2023.
Projections and trends:
According to the latest data, in the period from 2024 to 2026, house price growth in most European Union countries is forecasted at 2 to 4 percent annually, reflecting stabilization after an intense growth period. In some countries like Germany, the United Kingdom, and Denmark, such moderate growth is expected under stable economic factors and favorable credit conditions.
Main factors and influences:
Future price movement is mainly influenced by:
Due to rising construction costs and limited new supply, real estate prices will likely remain stable or slightly increase.
Economic factors such as stable or favorable interest rates, wage growth, and low unemployment will contribute to further demand.
Regional differences and political factors, like regulations and market restrictions, could cause oscillations or slow growth in individual countries.
Specific forecasts for individual countries:
Germany and the United Kingdom expect moderate growth of about 2 to 4 percent annually until 2028, while the market will remain influenced by high prices and limited supply.
Ukraine and Poland may show stronger growth due to higher investment interest and economic recovery.
France and some southern countries like Italy will have slower growth or price stagnation due to political uncertainty and limited supply.
Summary:
Overall, it is expected that real estate prices in the European Union during the period until 2028 will show low to moderate growth, with an average projection of 2 to 4 percent annually, with pronounced regional variations and influences from numerous economic and political factors.
