SHARE
COPY LINK
For members

PROPERTY

REVEALED: Where in Europe have house prices and rent costs increased the most?

Is it time to buy a property in Italy, Cyprus or Greece? House prices have shot up across Europe in recent years but there are major differences between certain countries.

REVEALED: Where in Europe have house prices and rent costs increased the most?
Italy is one of the few countries where property prices have decreased compared to 2010. (Photo by Nils Schirmer on Unsplash)

House prices have risen by an eye-watering 45 percent, and rents by 17 percent, across the EU since 2010, the latest figures released by the EU statistical office Eurostat reveal.

However, there are major differences among countries. In Austria, house prices have more than doubled and rents have increased by 45 percent compared to over a decade ago. In other countries, they have stalled or declined over the same period.

Greece is a notable example, with prices plummeting by 23 percent and rents by 25 percent between 2010 and 2021.

In Italy, house prices have fallen over overall since 2010 although like much of the EU they have been rising again in recent years.  Rent prices in Italy have registered only a modest increase, while Spain has recorded very small rises in both rents and house prices.

Here is the situation in the countries covered by The Local, according to Eurostat.

Finding a new home abroad?

Between 2010 and the first quarter of 2022, house prices have more than doubled in Austria (+114 percent) and have grown even more in Estonia, Hungary, Luxembourg, the Czech Republic, Latvia and Lithuania.

READ ALSO: EXPLAINED: What you need to know about buying property in Germany

In Germany, house prices shot up by a hefty 94 percent, in Sweden by 92 percent and in Norway by 91 percent.

Denmark (59 percent) and France (29 percent) also recorded double-digit growth.

Spain was the country with the smallest rise, 3 percent, among those countries covered by The Local.

Over the same period, prices have declined in Italy (-10 percent), Cyprus (-8 percent) and Greece (-23 percent).

READ ALSO: EXPLAINED: The hidden costs of buying a home in Italy

According to Italian real estate agency Tecnocasa, house prices in the country are now 29 percent lower than in 2010, even though a slow upward trend started in 2017. Only Milan bucks the trend, with an 8.5 percent increase between 2010 and 2021.

The reasons behind these data, according to Fabiana Migliola, director of Tecnocasa’s research unit, are dwindling salaries and low capital availability, with most buyers being able to afford properties of up to €250,000.

“Of course, a modest growth of real estate and lower prices compared to many other countries inside and outside of Europe make our country attractive to investors,” Migliola said. “This is a phenomenon we have recorded above all in the holiday home market, as 2021 signalled an increase in the number of holiday homes purchased by foreign buyers, especially from the US, France and Eastern Europe.”

2022 could be a year of adjustment, she continued, but rising interest rates could have an impact on buyers who finance their home purchases with a mortgage.

Looking at prices, the agency forecasts a recovery with a rise between 2 and 4 percent, with high demand currently from Italians.

Scaffolding on a high-rise apartment block

Austria has seen the highest average rent increase over the last 12 years. (Photo: Tobias SCHWARZ / AFP)

Where is it cheaper to rent?

Rents have not risen quite as much as house prices, but they have risen steadily since 2010.

Between 2010 and 2022, rent increased by 17 percent on average across the EU. The highest growth among the countries covered by The Local was in Austria, with a whopping 45 percent rise. Denmark (21 percent), Sweden (21 percent), Germany (17 percent) and Switzerland (10 percent) also experienced a double-digit rise.

READ ALSO: Property: How to find a rental flat when you arrive in Austria

Increases were more modest in Italy (7 percent), Spain (5 percent) and France (8 percent).

The highest growth was in Estonia (177 percent), Lithuania (127 percent) and Ireland (77 percent).

On the other hand, in Greece, rents decreased by a quarter over the period, and Cyprus recorded a -1 percent.

The problem of affordability

While average increase rates only give a partial picture of the real estate market, an additional indicator cited by Eurostat is the housing cost overburden rate, the percentage of people spending 40 percent or more of their disposable income on housing.

READ ALSO: 5 of the most affordable places to buy property in France

Despite its plummeting house prices and rents, Greece had the highest rate in 2020, with one in three people (33.3 percent) spending 40 percent or more of their income on housing.

Other European countries with a high-cost overburden rate are Denmark (14 percent) and Switzerland (14 percent).

Just below the 10 percent line stand Norway and Germany (9 percent), Spain (8 percent), Sweden (8 percent) and Italy (7 percent).

Despite the significant rise, Austria has a relatively low-cost overburden rate, at 6 percent.

How has Brexit impacted British buyers?

For British citizens, Brexit may have added difficulties to the purchase of properties in EU locations. Countries such as Austria have specific restrictions for non-EU citizens and where there are no restrictions, higher taxes and new immigration rules may result in fewer British buyers entering the market.

In Spain, it was reported this week that purchases by British residents, which used to make up almost a quarter of all transactions (24 percent), now only account for 12 percent.

However, a recent survey among 900 British buyers found that only 4 percent had given up plans to purchase a property abroad due to the difficulties caused by Brexit and the Covid-19 pandemic. Some 11 percent went ahead as planned last year and 85 percent are still planning to buy.

Useful links:

This article is published in cooperation with Europe Street News, a news outlet about citizens’ rights in the EU and the UK.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Seven gorgeous Swedish holiday homes for less than a million kronor

Fancy owning a beautiful red wooden cottage in Sweden for the same price as a shed in London or New York? It's the best time in years for foreigners to buy property in the Nordic nation, thanks to the weak krona.

Seven gorgeous Swedish holiday homes for less than a million kronor

With its chilly winter climate, famously expensive restaurants and unfamiliar language, Sweden might not seem like the obvious place to move to or buy a holiday home in. But if you’re paying in foreign currency, now may be the time to buy.

Swedish properties offer owners the chance to enjoy some of Scandinavia’s most pristine lakes and deep green forests alongside historic towns and villages. Plus Sweden has longer days and more sunlight than much of Europe during the summer months, when temperatures can regularly climb to 25 degrees in the south.

In general, Swedes look for holiday homes closer to the coast and nearer to major cities, so prices are much lower inland near smaller towns. Central Skåne is a good bet for warmer weather and easy access from the rest of Europe, but if you want really cheap prices you should head further north.

Here is an entirely impartial selection of properties costing less than a million kronor (at the time of publication: €90,084, $96,691, £79,023).

Andåsen 152, Härjedalens municipality

This red wooden summer house in Härjedalen, northern Sweden complete with its own sauna is a steal at just 450,000 kronor (€40,380). Although the property ad states that it only has two rooms, you’ll actually have access to two wooden cottages.

The first has one bedroom, as well as an open plan kitchen/living area with a woodburner and an open fireplace, and the second has a large reception room with windows in three directions as well as your very own woodburning sauna.

If that wasn’t enough, you’ll also have access to a guest cottage with space for up to four people to sleep.

The cottages are located by Andåssjön lake, on a small hill surrounded by forest and ten minutes away from a sandy beach with a bathing spot and space for you to put your boat.

Andåsen lies a half an hour drive from Härjedalen-Sveg airport which has direct connections to Stockholm’s Arlanda airport. Why not spend a few days in the Swedish capital before heading out into nature for the summer?

Sandy beaches on Seskarö in northern Sweden. Photo: Simon Eliasson/TT

Seskarö, Haparanda

This one-story three bedroom house on the market for 850,000 kronor (€76,615) is suitable as a summer house or permanent residence. The house lies on the island of Seskarö, 24 kilometres southwest of Haparanda in northern Sweden.

Just a stone’s throw from the beach, this summer house provides easy access to swimming and fishing spots, as well as a number of restaurants on the island.

Although it comes into its element in the summer – there’s a garden with enough space for growing vegetables – this house also has a cosy open fireplace and a sauna to keep you warm during the winter.

Seskarö is around an hour and a half by car from Luleå, which has direct flights to Stockholm.

Hultsfred, Småland

This four-bedroom house in the small town of Hultsfred in Småland could be yours for 795,000 kronor (€71,357). Hultsfred is a popular town during the summer with nearby lakes providing great opportunities for swimming and walking, with Knästorp nature reserve on your doorstep.

The house, located in central Hultsfred, has recently been renovated with a modern kitchen and two bathrooms perfect for a large family. It’s not classified as a summer house, which means you’d be able to live here all year round if you wanted.

It takes around two hours to reach Hultsfred via train from Linköping, which has direct flights to all major Swedish airports, as well as Toulouse and Amsterdam.

Småland is known for its lakes and forests. Photo: August Dellert/imagebank.sweden.se

Yxenhaga, Småland

These red cottages situated in the summer house resort of Yxenhaga in Småland are surrounded by nature, with forests and lakes within walking distance. The cottages are now on sale, with a mix of one bedroom, two bedroom and studio cottages on offer. Prices range from 725,000 kronor (€65,160) for a one bedroom cottage to 1,050,000 kronor (€94,370) if you want to buy a one-bed and studio cottage together.

Despite their location on a summer resort, these cottages are classed as all-year residencies, meaning you can stay in them whenever you like – even full time, if you wanted.

These cottages are very family friendly with playgrounds on the resort site, and there are many activities on offer in the surrounding area, such as canoeing, fishing, swimming, ball games and even a sauna with a view of the water.

Jönköping is the closest town, with the bus from nearby Kinnebro – a fifteen minute cycle ride away – taking around 40 minutes.

The closest major international airport is in Gothenburg, which can be reached in two hours by car or three and a half hours by public transport.

Vittsjö, Skåne

This charming two-bedroom torp cottage, priced at 795,000 kronor (€71,357) and built in 1915, is situated 6.5 kilometres outside the Scanian town of Vittsjö with a view over forests, fields and meadows. It takes around 10 minutes to walk down to Öresjön lake for a swim.

The Skåneleden bike route runs through Vittsjö, making this a great option for cycle enthusiasts. Photo: Apelöga/imagebank.sweden.se

Despite its location out in the countryside, it takes under two hours to get to Vittsjö from Copenhagen Airport via train through Hässleholm, making this a great choice for a summer house if you live in the rest of Europe and would like to be able to get here in under a day.

Slite, Gotland

This little summer house in Slite on the island of Gotland has one room and a kitchenette, as well as a little veranda with a view of the sea. It’s on the market for 950,000 kronor (€85,450), and can be rented out to earn some money when you’re not using it.

Just a stone’s throw away from Gotland’s only archipelago, this is the perfect summer house if you like spending time on the water, with daily boat tours available to book during summer.

There are a number of activities on offer within walking distance, such as a tennis court, sports hall, ice skating rink, mountaine bike routes and walking trails. You can also rent kayaks and bikes in the resort.

The association also offers a floating sauna which can be rented for 50 kronor.

There is a direct bus from Slite to Visby, which takes one hour, and direct flights from Visby airport to Stockholm, Gothenburg, Malmö and Norrköping airports.

Fårösund, Gotland

A timeshare in this tip-top summer house in Northern Gotland, where you would be able to stay for five weeks a year, is currently on the market for 450,000 kronor (€40,495).

This house has three bedrooms, one bathroom and a guest toilet, as well as a smaller building for guests. It also has ample outside space with two gardens, a sheltered inner courtyard and a patio with sea views.

Fårö island off the coast of northern Gotland. Photo: Simon Paulin/imagebank.sweden.se

The house is by Kronhaga beach in Fårösund, a small town with restaurants, shops, cafes and other amenities. Suitable for relaxation or active holidays, there are walking trails, tennis and padel courts nearby, as well as Fårö island – the home of late Swedish filmmaker Ingmar Bergman – which can be reached by an eight-minute ferry ride.

Fårösund is an hour and a half away from Visby by direct bus, or just under an hour by car.

SHOW COMMENTS