Real estate prices in the European Union rose by 2015 percent between 53 and last year, and in some countries costs have even tripled.
Higher construction costs and mortgage interest rates, limited supply and the growth of buying apartments as an investment have led to incredible price levels in some EU countries, Euronews reports.
Hungary has recorded the highest price increase – apartments are three times more expensive today than in 2015. An apartment in the capital, Budapest, costs on average between 250 thousand and 1,5 million euros.
Iceland follows, where prices are approximately 2,5 times higher than in 2015. In the capital region, Reykjavík and six surrounding municipalities, apartments are the most expensive, with an average purchase price of around 558 thousand euros.
According to data from the Central Bank of Iceland, as supply increases and demand weakens, real estate prices are rising more slowly, but annual housing price inflation was eight percent in March.
The rest of Europe has also seen significant increases in property prices over the past nine years. Lithuania, Portugal, the Czech Republic, Bulgaria, Estonia and Poland have all seen prices more than double.
At the bottom of the list is Finland, where real estate prices are not significantly higher than they were almost a decade ago. However, there are large differences in the price of apartments in rural areas and, for example, in Helsinki.
According to a recent report by Global Property Guide, the decline in the Finnish real estate market, which began in 2021 and saw an annual price drop of 14 percent, has likely reached its bottom.
The economic recovery is expected to drive a gradual increase in property prices, mainly new construction, while used property prices will only increase marginally, by one to three percent this year. Used apartments cost an average of 4,61 thousand euros per square meter, which for a 75 square meter apartment means 345,9 thousand euros, while in Helsinki the amount is closer to 400 thousand to 500 thousand euros.
Eurostat does not have data on property prices in Greece, but according to the Bank of Greece's Residential Property Index, prices in urban areas are only slightly above 2008 levels.
Bonus video:
