The European real estate market has rebounded, Croatia has remained in the lead.

The European real estate market showed signs of recovery in 2025, with 17 out of 20 countries included in the analysis reporting increased property sales. The trend was driven by lower mortgage interest rates, which encouraged buyers to return to the market. As a result, the number of homes and apartments sold rose significantly across much of Europe. In contrast, Croatia remained among the few countries where property sales continued to decline, marking a notable exception to the broader regional trend. According to Eurostat data, Slovenia recorded the highest increase in property transactions, with a nearly 30% rise compared to the previous year. Latvia followed with a 22.8% growth, Austria saw a 21.4% increase, and Belgium registered a 20.2% surge. Other countries such as France, Luxembourg, Hungary, Netherlands, Denmark, and Portugal also reported double-digit increases. Meanwhile, Lithuania, Finland, and Norway achieved growth of around nine percent. On the other hand, Croatia experienced a 4.1% drop in property sales, making it one of the few nations where the downward trend persisted. Croatia’s housing prices have continued to climb despite the declining volume of transactions. Between the first quarter of 2025 and the first quarter of 2026, residential property prices in the country rose by 14.3%, placing Croatia fourth in terms of price growth within Europe. Rent prices saw an even more pronounced increase, with a 39.1% jump over the same period, highlighting the strong demand for rental properties in the region. Experts suggest that domestic factors continue to influence the Croatian market, even as the rest of Europe experiences a gradual recovery. France led the continent in terms of the number of property transactions, with over a million homes and apartments sold during 2025. Interestingly, property prices in France remained largely unchanged, with only a minor 0.1% increase. The Netherlands recorded approximately 265,000 property transfers, while Hungary, Belgium, Portugal, and Norway each saw between 130,000 and 160,000 transactions. Although Slovenia had the highest percentage increase in sales, its relatively small market size meant that total numbers remained modest, with just over 11,000 properties sold throughout the year. Analysts warn that although the market is recovering, supply continues to lag behind demand. High construction costs and slow development of new residential projects have limited the availability of properties, maintaining upward pressure on prices. While improved financing conditions have brought some buyers back into the market, experts believe that the lack of new housing stock will remain a key challenge for the European real estate sector in the coming months. This imbalance between supply and demand is likely to persist, influencing both pricing trends and buyer behavior across the continent.