House prices in Europe fell for the first time in almost a decade

House prices fell 1.7% compared to 2022 in the Eurozone, and 1.1% in the European Union, in the second quarter of 2023, according to Eurostat. Experts say the trend in the European property market is about to change: houses are on average cheaper than last year, but there is a definite shift in quarterly figures, hinting that the decline may not last long. In a quarterly comparison, prices started to rise: by 0.1% in the euro area and by 0.3% in the EU between April and June 2023.

Germany recorded the steepest annual decline for the quarter (-9.9%), followed by Denmark (-7.6%) and Sweden (-6.8%). The largest increase was recorded in Croatia (+13.7%), followed by Bulgaria (+10.7%) and Lithuania (+9.4%).

When comparing the second quarter of 2023 with 2010, in 20 of the 27 EU countries, house prices rose more than rents. House prices more than doubled in Estonia, Hungary, Lithuania, Latvia, the Czech Republic, Luxembourg and Austria, while slight declines were recorded in Greece, Italy and Cyprus.

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