European Union (EU) house prices experienced a slight 0.3% decline in the fourth quarter of 2023 compared to the third quarter, according to data published today by Eurostat. This marks the first time in two years that house prices have fallen, following a period of sustained growth.

In contrast, rents in the EU continued to rise in the fourth quarter of 2023, increasing by 0.6% compared to the previous quarter. This marks a 3.0% annual increase in rental prices.

Divergent Trends

House prices and rents in the EU have followed divergent paths since 2011. While rents have consistently increased, house prices have experienced fluctuations, including both declines and more rapid increases.

Historical Increases

Compared to the fourth quarter of 2010, EU house prices have increased by 48%, while rents have risen by 23%. House prices have more than doubled in Estonia, Hungary, Lithuania, Latvia, Czech Republic, Austria, and Luxembourg.

Country Differences

The Eurostat data also reveals significant differences between EU countries. Among those with available data, house prices increased more than rents in 19 countries. In contrast, decreases were observed in Italy (-8%) and Cyprus (-3%).

Regarding rents, these increased in 26 EU countries, with the largest increases in Estonia (+207%), Lithuania (+172%), and Ireland (+102%). The only country with a decrease in rental prices was Greece (-19%).