Strongest Annual Growth Among Member States
Portugal saw the highest increase in house prices among EU countries in the first quarter of 2025, according to data from Eurostat. Compared to the same period last year, prices rose by 16.3%, far above the EU average of 5.7% and the euro area’s 5.4%. Only Finland recorded a decrease, with prices falling by 1.9%.
This sharp rise places Portugal ahead of Bulgaria (15.1%) and Croatia (13.1%), which also saw significant annual increases.
Top 3 Fastest EU Price Increases in 2025 Q1
These are the three countries with the highest real estate price increases in Q1 2025. Notice Portugal’s steady and accelerating growth over the past four consecutive quarters. See the full table on Eurostat.
Country | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 |
Portugal | 7.8% | 9.8% | 11.6% | 16.3% |
Bulgaria | 15.1% | 16.5% | 18.3% | 15.1% |
Croatia | 10.0% | 13.1% | 10.1% | 12.3% |
Quarterly Data Also Shows Significant Rise
House prices in Portugal also grew strongly over the short term. Between the last quarter of 2024 and the first quarter of 2025, prices increased by 4.8%, the second-highest rise in the EU after Hungary’s 5.2%. Croatia followed closely with a 4.5% increase.
By contrast, some countries recorded declines. Slovenia saw the largest drop at 2.0%, followed by Luxembourg (-1.2%) and Finland (-1.0%). On average, prices rose by 1.4% across the EU and 1.3% in the euro area.
Why Are Prices Rising So Quickly?
Several other factors may be contributing to the rapid increase in Portugal, including limited housing supply, strong demand in urban areas, and a continued steady increase in AL and short term rentals. In cities like Funchal, Lisbon and Porto, prices have been rising steadily, putting continued pressure on residents.
Incomes have not kept up with house prices, for many, buying a home is now out of reach.
Carla Ferreira, economist at the University of Porto
As housing prices continue to rise faster than inflation in many real estate markets - especially in Portugal - policymakers must take action to avoid further long-term problems for democracy and average-income families.
Source: Eurostat
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