The average transaction price of new housing in Europe in 2021 was highest in the United Kingdom, while existing homes were the most expensive in Norway. As there is no central body that collects and tracks transaction activity or house prices across the continent or in the European Union, not all countries are included. To compile the rankings, the source weighted the transaction prices of residential properties in each country’s most important cities based on data from their national offices. For example, the cities included in Germany were Munich, Hamburg, Frankfurt and Berlin.
House prices rising, Sweden tops the ranking
Taking into account the RHPI (actually a price index, which measures the price change of single-family properties adjusted for the effects of inflation) of homes in Europe, the picture changes. Sweden, Luxembourg and Norway top the ranking, which means that residential property prices have increased the most in these countries. real values were calculated using the so-called personal consumption expenditure deflator (PCE), this PCE uses both consumer prices as well as consumer spending, such as medical and health care spending, that is paid for by employers. It just goes to show how expensive housing is compared to the way we live in a country.
Home ownership is highest in Eastern Europe
Home ownership rates in Europe differ from country to country. In 2020, almost half of all homes in Germany were owner-occupied, while home ownership was around 97 percent in Romania or almost 90 percent in Slovakia and Lithuania. These numbers were significantly higher than in France or Italy, where homeowners were 65 percent and 72 percent of their respective populations.
For more information on the subject of property in Europe, visit the following pages as a starting point for your research: Real Estate Investments in Europe and Residential Real Estate in Europe.