In the second quarter of 2026, house prices across the European Union rose by 4.7% compared to the same period in the previous year, Euronews reports, citing Eurostat data. In Germany, prices recorded a nominal increase of 0.6%, while inflation-adjusted figures reflect a 2% decline.
- According to figures cited by Euronews, annual housing price growth stood at 4.7% across the EU and 0.6% in Germany.
- The strongest price surges among 29 examined European nations were registered in Portugal (+16.5%) and Bulgaria (+15.5%).
- Finland, Luxembourg, and France recorded year-on-year price declines.
Diverging Price Trends Across Europe
Euronews reports that nine out of 29 European countries registered double-digit annual price growth in the second quarter of 2026. The report lists the following nominal price changes before adjusting for inflation:
| Country or Region | Year-on-Year Change |
|---|---|
| Portugal | +16.5% |
| Bulgaria | +15.5% |
| Spain | +12.1% |
| EU Total | +4.7% |
| Italy | +4.0% |
| Germany | +0.6% |
| France | −0.8% |
| Luxembourg | −2.2% |
| Finland | −2.7% |
According to Euronews, Finland, Luxembourg, and France were the only countries in the surveyed sample where prices fell year-on-year.
Impact of Inflation Adjustments
The outlet compares the nominal EU price growth of 4.7% with an inflation rate of 3.2%, reporting a real price increase of 1.5%. For Germany, Euronews highlights a real property price decline of 2% once adjusted for inflation, despite nominal gains.
Consequently, the nominal and inflation-adjusted trends for Germany moved in opposite directions during the recorded period.
Expert Perspectives on Market Disparities
Global Property Guide expert Mikk Kalmet, quoted by Euronews Business, attributes national differences to housing shortages, income developments, mortgage lending criteria, and demographic trends. In his assessment, housing demand significantly outstrips supply in Portugal, particularly in Lisbon, Porto, and prime coastal regions, driven by constrained construction, foreign capital inflows, and tourism demand.
Regarding the German real estate market, Euronews cites ING analysts Carsten Brzeski and Franziska Biehl, who note that rising mortgage rates and deteriorating housing affordability continue to dampen mortgage demand.
Kalmet notes that persistent supply shortages and steady demand may continue to support property prices across many European markets. However, in his view, another consecutive year of double-digit price increases cannot be taken for granted.