The Cost of Buying And Renting Realty in the EU Countries Has Changed Over 10 Years

According to Eurostat, between 2010 and the second quarter of 2011, prices for buying and renting housing in the EU followed a similar path. However, since the second quarter of 2011, they have followed completely different ways: the cost of rent rose steadily until the fourth quarter of 2020, but housing prices fluctuated constantly.

From the second quarter of 2011 to the first quarter of 2013, house prices in the EU fell sharply, and then remained more or less stable until 2014. Then, in early 2015, they began to grow rapidly, and since then, their growth rate has significantly outpaced rental rates.

Between 2010 and the fourth quarter of 2020, rents in the EU increased by 14.9%, while house prices increased by 28.6%.

If we compare the fourth quarter of 2020 with 2010, house prices rose more than rents in the 18 EU member states. Overall, house prices rose in 23 EU member states and fell in four. The largest increase in housing prices over 10 years was observed in Estonia (+112.8%), Luxembourg (+99.8%), Hungary (+90.6%), Latvia (+85.6%) and Austria (+81.4%). The decrease was noted in Greece (-28.1%), Italy (-15.2%), Spain (-5.2%) and Cyprus (-3.4%).

As for rental rates, when comparing the fourth quarter of 2020 with 2010, rates increased in 25 EU member states and decreased in two, with the largest increases observed in Estonia (+143.5%), Lithuania (+109.2%) and Ireland (+61.8%). The decrease was recorded in Greece (-25.2%) and Cyprus (-4.1%).

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