Beating Inflation with Real Estate: The Best Performing Cities in Europe (2024 Analysis)
Veronika Mamontova
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Frequently Asked Questions
Which European cities had the highest real estate returns compared to inflation in 2024?
Athens, Lisbon, and Zagreb delivered the strongest real wealth gains in 2024, with property prices rising well above local inflation levels. Zurich also provided stable inflation protection with low volatility.
Is real estate a good hedge against inflation in Europe?
Yes - but only in select markets. Cities with strong demand, limited supply, and rent indexation (like Lisbon and Athens) proved that property can beat inflation, while others saw flat or negative real returns.
How did inflation affect real estate prices in Europe in 2024?
In 2024, inflation across Europe dropped to ~2–3%. While some cities matched or outpaced this (Lisbon +11%, Athens +8.2%), others like Berlin saw stagnant prices, meaning real returns depended on location.
What factors make a city’s real estate inflation-resistant?
Key factors include index-linked rents, limited housing supply, strong local demand, and currency stability. These elements helped cities like Zurich and Lisbon protect investor wealth in 2024.
Where in Europe should I invest in real estate to protect against inflation?
Based on 2024 data, look to Athens, Zagreb, Lisbon, or Zurich - all showed strong or stable property growth relative to inflation. Each offers different risk/reward profiles for inflation-conscious investors.