House prices rise across Europe but not in Spain

Rents and house prices in Europe have continued their steady increase in Q2 2021, going up by 1.3 per cent and 7.3 per cent respectively, compared to Q2 2020, according to data on house prices and rents published by Eurostat.

Between 2010 and Q2 2011, house prices and rents in the EU followed similar paths, but since Q2 2011, those paths have diverged significantly. While rents increased steadily throughout the period up to Q2 2021, house prices have fluctuated considerably.

After a sharp decline between Q2 2011 and Q1 2013, house prices remained more or less stable between 2013 and 2014. Then, there was a rapid rise in early 2015, since when house prices have increased at a much faster pace than rents.

Over the period 2010 until Q2 2021, rents increased by 16 per cent and house prices by 34 per cent.

When comparing Q2 2021 with 2010, house prices increased more than rents in 18 EU Member States. House prices increased in 23 EU countries and decreased in four, with the highest rises in Estonia (+133 per cent), Luxembourg (+111 per cent) and Hungary (+109 per cent). Decreases were observed in Greece (-28 per cent), Italy (-13 per cent), Cyprus (-8 per cent) and Spain (-3 per cent).

For rents, the pattern was different. When comparing Q2 2021 with 2010, prices increased in 25 EU Member States and decreased in two, with the highest rises in Estonia (+142 per cent), Lithuania (+109 per cent) and Ireland (+66 per cent). Decreases were recorded in Greece (-25 per cent) and Cyprus (-3 per cent).

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