Eurostat has released new data on the prices of buying and renting a home in the European Union in the first quarter of 2024.
According to the agency's report, the cost of property in Cyprus rose by 1.4 per cent in the period under review compared with the fourth quarter of 2023, when a fall of 0.6 per cent was recorded. On a year-on-year basis, house prices in the island nation rose by 1.1 per cent.
Interestingly, the cost of buying a house in the euro area fell by 0.4 per cent year on year in the first quarter of 2024, but rose by 1.3 per cent year on year in the EU. Note that in the fourth quarter of 2023, house prices fell by 1.2% in the euro area, but rose by 0.2% in the EU.
On an annual basis, the largest falls in house prices were recorded in Luxembourg (-10.9 %), Germany (-5.7 %) and France (-4.8 %). In contrast, the highest year-on-year increases were recorded in Poland (18%), Bulgaria (16%) and Lithuania (9.9%). Compared with the fourth quarter of 2002, house purchase prices fell in eight EU Member States and rose in 18 of the 27 EU countries. The largest falls in the cost of purchasing a dwelling were registered in Denmark (-2.5%), France (-2.1%) and Slovakia (-1.7%), while the highest increases were recorded in Bulgaria (7.1%), Hungary (5.1%) and Poland (4.3%).
Eurostat noted that house purchase and rental prices in the EU followed a similar upward trend between 2010 and the second quarter of 2011.
After this quarter, house prices and rents followed different paths. While rents rose steadily throughout this period until the second quarter of 2023, house prices fluctuated considerably. Nevertheless, between 2010 and the first quarter of 2024, the cost of buying a property in the EU increased by 49%.
Property prices in Cyprus moved in the opposite direction during this period. In fact, the island state was one of only two countries where house prices fell by 1.2% between January and March 2024 compared to the same period in 2010. The second was Italy (-8 per cent). The highest price increases during this period were recorded in Estonia (+223%), Hungary (+207%), Lithuania (+170%), Latvia (+140%), the Czech Republic (+125%), Austria (+108%) and Luxembourg (+101%).
Rental prices have also risen significantly in Europe over the last 15 years. In particular, 26 countries were affected by this trend. The largest increases were recorded in Estonia (+201%), Lithuania (+174%) and Ireland (+104%). The only country where prices fell was Greece (-19%). In Cyprus, rents increased by 6.5%. In the EU, rents rose by 0.9% in the first quarter of 2024 compared with the fourth quarter of 2023. On an annual basis, rents in the EU increased by 3%.