House sales in Europe: Which markets are growing and which are slowing?
Euronews Business looks at trends in the European housing market, focusing on home sales and the reasons behind them.
In Ireland, home sales dropped sharply in the second quarter compared to the same time in 2024, according to Eurostat.
Ireland was one of four EU countries where house sales fell year-on-year, even though overall EU home sales grew by 10%.
In Ireland, the number of homes sold, including new builds, fell by 10%. Sales also went down in Malta (6.2%), Hungary (5.7%), and Finland (5.6%).
Kate Everett-Allen, head of European Residential Research at Knight Frank, said: “Ireland’s 10% drop shows that homes are still expensive and supply is low.”
Some EU countries saw growth in home sales. Annual growth ranged from 2.2% in Denmark to 86.6% in Luxembourg. Luxembourg’s market is very small, so even small changes can make a big difference in percentages.
Home sales were also strong in Slovenia (up 34.8%) and Lithuania (up 24.4%). Belgium, Portugal, and the Netherlands also recorded notable increases.
Everett-Allen explained that the differences in growth reflect how countries are responding to lower interest rates.
“Although the European Central Bank (ECB) has cut rates eight times in this cycle, the impact is uneven because financing, supply, and demand vary across countries,” she said.
Eurostat • Poland: 2024-Q4
Governments Help First-Time Home Buyers
Michael Polzler, CEO of the real estate network RE/MAX Europe, said that housing markets differ in each country because of local conditions and government support programs for first-time buyers. These programs aim to make homes more affordable in some countries.
“In Portugal, government support has created both opportunities and challenges,” he said.
Polzler explained: “The Public Guarantee scheme allowed many people under 35 to get mortgages for the first time. But at the same time, some sellers raised their prices because of this.”
Home sales grew by 10.4% in France, while Spain saw a smaller increase of 2.5%. Data for Germany and Italy was not available.
Everett-Allen said Spain’s small 2.5% growth shows the market is returning to normal after a post-pandemic boom. Limited housing, especially in coastal and island areas, is keeping sales low. France’s 10.4% growth shows a slow recovery after a quiet 2023–24, but regional differences remain, and possible tax changes could affect the market.
In Norway, which is not part of the EU, home sales grew by 10%. In Poland, the latest figures from late 2024 show a 17.9% drop in home sales.
Polzler noted that Poland’s 2% fixed-rate mortgage scheme, which had boosted demand, ended because of budget limits.
“Without a replacement program and with high interest rates, many buyers are waiting to see what happens in 2026,” he said.
France Tops the EU in Home Sales
The housing market is very different across EU countries because populations vary. In the second quarter of 2025, France had nearly 245,000 home sales, the highest in Europe.
Image Credit: Eurostat
The Netherlands is second among the 12 EU countries and Norway, according to available Eurostat data. But the number of homes sold in the Netherlands—63,709—is still much lower than in France.
Portugal, Belgium, Norway, and Hungary each sold between 32,000 and 38,000 homes this quarter.
What’s happening in the UK and Germany?
Germany and the UK are not included in Eurostat’s data. In the UK, fixed mortgage rates have fallen since late 2024, making it easier for people to afford homes and borrow more. Combined with changes to Stamp Duty in April, this has increased the number of home sales.
In Germany, the property market is under pressure because few new residential building permits are being issued. This limited construction reduces long-term confidence.
“This is especially clear in cities where housing is already in short supply. Limited availability pushes prices even higher,” said Polzer.
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