Key facts
- Home sales rose in 17 of 20 European countries in 2025.
- Slovenia saw the sharpest percentage increase in home sales.
- France recorded over one million home transactions in 2025.
- Belgium and Austria experienced annual sales growth exceeding 20%.
- Croatia's home sales declined for the fourth consecutive year.
- Croatia's rents increased by 39.1% between Q1 2025 and Q1 2026.
Europe's housing market demonstrated renewed vigor in 2025, with home sales increasing in 17 out of 20 surveyed countries, according to Eurostat data. Lower borrowing costs and improved financing conditions are credited with reviving demand, even as property prices continued to rise across much of the continent.
Slovenia led the continent in percentage growth for home sales, while France surpassed one million transactions, marking a significant turnaround from previous years. Belgium and Austria were among the countries that experienced annual sales growth exceeding 20%, with Lithuania also reporting strong gains. Other nations like Luxembourg, Hungary, the Netherlands, Denmark, and Portugal also saw double-digit increases.
Conversely, Croatia experienced a decline in home sales for the fourth consecutive year, despite significant increases in rents and property prices. Bulgaria and Poland also recorded slight decreases in sales. Real estate advisors noted that while broader European market activity strengthened, domestic factors continued to influence Croatia's market performance.
Factors influencing the market recovery included stabilizing interest rates, which provided greater predictability for buyers who had postponed purchases. However, high construction costs and limited new building activity continued to constrain housing supply across Europe.