In 2024, European real estate grows despite economic challenges. The Deloitte Real Estate Property Index 2024 reports double-digit housing cost increases. Here are the top ten nations with the highest growth.
Top-10 Countries with the Highest Real Estate Price Growth
Hungary – growth of 13.3%
Poland – growth of 12.2%
Portugal – growth of 11.5%
Greece – growth of 10.0%
Czech Republic – growth of 9.3%
Slovenia – growth of 8.8%
Ireland – growth of 7.9%
Spain – growth of 3.1%
Croatia – growth of 2.7%
Romania – growth of 3.0%
What’s Driving Real Estate Price Growth in Europe in 2024? Key Factors Explained
There are several key factors contributing to rising real estate prices in these countries:
Reduced Mortgage Affordability – In 2023, the European Central Bank raised interest rates, but in 2024, rates began to decline, leading to increased housing demand.
Limited Supply of New Housing – In countries like France (-22.6% new housing supply), Germany (-12.5%), and Hungary (-10.1%), a shortage of new properties is pushing prices upward.
Increased Investment Interest – Poland, Hungary, and Portugal have become new hotspots for international investors.
High Demand in Urban Areas – Demand for housing in capitals and major cities remains significantly higher than in rural areas.
Expansion of the Rental Market – As property purchase prices rise, demand for rental housing is increasing, further fueling price growth.
Environmental Standards and Energy Efficiency – A growing number of buyers are focusing on energy efficiency, which also increases property value.
Which Countries Remain the Most Expensive for Real Estate in 2024?
Israel remains the most expensive country in terms of real estate prices at 5,439 EUR/m². It is followed by Austria (4,920 EUR/m²), Germany (4,700 EUR/m²), France (4,538 EUR/m²), and the Netherlands (4,266 EUR/m²). Interestingly, Paris, Tel Aviv, and Munich remain the most expensive cities in Europe, with real estate prices reaching 14,900 EUR/m² and higher.
Impact of Rising Real Estate Prices on Buyers in Europe: Affordability Concerns in 2024
As property prices continue to climb, affordability remains a key concern for buyers across Europe. First-time homebuyers are particularly affected, as rising costs make it harder to save for down payments. In response, many are turning to alternative housing options such as co-living spaces or smaller apartments.
Government policies are also playing a role in managing affordability. Several European countries have introduced tax incentives and subsidies to assist first-time buyers. Additionally, rental market regulations are being strengthened to ensure fair pricing for tenants.
How Developers Are Responding to 2024 Market Trends in European Real Estate
Real estate developers are adapting to the changing market by focusing on high-density, mixed-use developments in urban centers. Many are also investing in sustainable and energy-efficient construction methods to meet new environmental standards. Prefabricated housing and modular construction are gaining traction as cost-effective and faster alternatives to traditional building methods.
European Real Estate Investment Opportunities in 2024: Emerging Markets and Growth Areas
With property values on the rise, real estate investment remains a lucrative opportunity for both domestic and international investors. Countries experiencing rapid price growth, such as Hungary and Poland, are attracting foreign capital, particularly in the rental and commercial property sectors.
Investors are also looking at emerging secondary cities where property prices are lower but expected to appreciate over time. This trend is evident in cities such as Cluj-Napoca in Romania and Porto in Portugal, where demand for housing continues to outpace supply.
Future Outlook for the European Real Estate Market: Trends and Predictions for 2025
According to Deloitte experts, the real estate market may slow down in 2025 due to cautious banking policies and a potential price correction in some Western European countries. Meanwhile, Eastern European countries (Poland, Hungary, Romania) will remain zones of active growth due to increasing demand and investment activity.
Additionally, environmental trends will continue to impact the market. Several EU countries are already introducing new energy efficiency standards, which will raise the cost of "green" housing but may also lead to depreciation of outdated properties.
Thus, the European real estate market remains an attractive asset despite economic challenges and tighter lending conditions. The issue of housing affordability for citizens remains unresolved, particularly in countries with the highest price growth rates.
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