The rising price of residing is the highest space of concern for European residents, in keeping with a 2024 Eurobarometer survey.
The discovering is probably unsurprising as the worth of housing continues to extend throughout the EU. Within the fourth quarter of 2024, home costs within the area elevated by 4.9%, whereas rents rose by 3.2% in comparison with the identical interval in 2023. Over the course of 2024, the annual development in EU home costs was 3.3%, and rents noticed a 3.1% improve.
Value fluctuations different throughout Europe, with some nations even experiencing declines. However which European nations skilled the best will increase in home costs and rents in 2024?
Based on Eurostat, in 2024, the annual common change in home costs throughout the EU ranged from a lower of 5.2% in Luxembourg to a rise of 16.5% in Bulgaria.
Home costs declined in France and Germany in 2024
Along with Luxembourg, home costs decreased in France (–3.7%), Finland (–3.5%), Germany (–1.6%), and Austria (–0.2%) in 2024.
Except for Bulgaria, important worth will increase have been seen in Poland (15.0%), Hungary (12.8%), and Croatia (10.4%).
Giant jumps have been additionally recorded in Portugal (9.1%), Spain (8.5%), Eire (8.5%), and the Netherlands (8.2%).
Based on the ONS, common annual home worth inflation within the UK was 4.6% within the 12 months to December 2024.
Jap and Southeastern Europe are likely to dominate the highest of the rankings, displaying giant will increase, whereas Western and Northern European nations occupy the decrease finish.
Evaluating the ultimate quarters of 2024 and 2023, home worth rises adopted an analogous sample to the entire yr common modifications. Throughout the EU, Bulgaria recorded the best quarter-on-quarter improve at 18.3%, adopted by Hungary (13.0%) and Portugal (11.5%).
Among the many EU’s 4 largest economies, Spain noticed the best rise at 11.3%, whereas France registered a decline of 1.9% over the identical interval. Alongside France, Finland (–1.9%) was the one different EU nation to expertise a lower.
Yr-on-year change on this quarter was 1.9% in Germany and 4.5% in Italy.
Turkey stands out as a major outlier
Turkey, which has skilled excessive inflation lately, stood out as a major outlier among the many non-EU nations on the checklist, together with some candidate nations and EFTA members.
In 2024, home costs in Turkey surged by 41.5%, with a year-on-year improve of 28.5% recorded within the fourth quarter.
Lease will increase barely lag behind home costs
Within the EU, hire will increase remained barely beneath home worth development, each within the annual common for 2024 and within the year-on-year change for the ultimate quarter.
The annual common improve in rents was 3.1%, whereas the year-on-year rise within the final quarter of 2024 stood at 3.2%. For home costs, these figures have been 3.2% and 4.9%, respectively.
Amongst EU nations, the annual common change in rents ranged from a decline of 0.9% in Estonia to a rise of 12.4% in Hungary. Estonia was the one nation the place rents decreased.
Jap European and Balkan nations recorded the best hire will increase, whereas Western and Northern European nations skilled low hire development or stagnation.
The EU’s largest economies, Germany (2.2%) and France (2.3%), each recorded hire will increase beneath the EU common, whereas Italy barely exceeded it at 3.2%.
UK rents almost doubled home worth development
Within the UK, rents rose at almost twice the speed of home costs. Common personal rents elevated by 9.0% within the 12 months to December 2024, in comparison with a 4.6% rise in home costs over the identical interval.
Within the EU, year-on-year hire will increase for the ultimate quarter of 2024 ranged from 1.1% in Lithuania to 11.3% in Hungary.
Just like home costs, Turkey emerged as a transparent outlier in hire will increase, with a fair higher disparity. In 2024, the annual common improve in rents reached 117.2%, whereas the year-on-year change within the last quarter was 109%.
To raised perceive property tendencies in Turkey, it’s extra helpful to contemplate actual (inflation-adjusted) modifications, as wages have additionally risen considerably in nominal phrases lately. As an example, the nominal web minimal wage elevated by 71% in 2024 in comparison with 2023.