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European property market booms in 2025, Croatia sees sales fall despite rising prices
๐Ÿ‡ญ๐Ÿ‡ท Croatia /Economy & Trade

European property market booms in 2025, Croatia sees sales fall despite rising prices

From Veฤernji List · () Croatian

Translated from Croatian, summarized and contextualized by DistantNews.

At a glance

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  • Property sales rose in 17 of 20 European countries in 2025, driven by lower borrowing costs that revived demand.
  • Slovenia saw the largest percentage increase in sales at 29.9%, while Croatia experienced a 4.1% decline.
  • Despite a drop in sales, Croatia recorded a 14.3% increase in house prices and a 39.1% rise in rents.

Europe's property market gained momentum in 2025, with sales increasing in 17 out of 20 countries as lower borrowing costs spurred demand. Slovenia led the growth with a 29.9% surge in sales, followed by Belgium and Austria, which both saw over 20% annual increases. France surpassed one million transactions.

On housing transactions, it is mainly influenced by mortgage affordability, interest rates, household income, employment, consumer confidence, and housing supply.

โ€” Mikk KalmetA property consultant at Global Property Guide, explaining the factors influencing housing transactions.

However, significant market variations persist across the continent. Croatia, a popular tourist destination, experienced a 4.1% decrease in property sales, marking its fourth consecutive year of decline. This contrasts sharply with its housing market performance, where prices rose by 14.3% and rents by 39.1% between Q1 2025 and Q1 2026, the fourth-highest price increase in Europe.

France recorded one of the most significant turnarounds, moving from a decline in 2024 to growth in 2025, while Spain maintained positive growth in both years, indicating relatively resilient demand.

โ€” Mikk KalmetCommenting on the performance of the French and Spanish property markets.

Mikk Kalmet, a property consultant at Global Property Guide, noted that housing transactions are influenced by mortgage affordability, interest rates, household income, employment, consumer confidence, and housing supply. He highlighted France's significant turnaround from a sales decline in 2024 to growth in 2025, and Spain's sustained positive growth, indicating resilient demand.

This indicates a broad recovery in market activity, likely reflecting improved financing conditions and the release of pent-up demand delayed during the period of higher interest rates.

โ€” Mikk KalmetDescribing the broader recovery of the European property market.

While most European countries saw sales rebound, Croatia, Bulgaria, and Poland experienced slight declines. Kalmet observed that the strengthening property market activity across the EU in 2025 likely reflects improved financing conditions and pent-up demand released after a period of higher interest rates. Croatia's unique situation, with falling sales despite rising prices and rents, suggests that domestic factors continue to shape its market.

Croatia was the only country to record a decline in both years, underscoring that domestic factors continue to shape the real estate market performance despite the broader European recovery.

โ€” Mikk KalmetHighlighting Croatia's unique market conditions.
DistantNews Editorial

Originally published by Veฤernji List in Croatian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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