House Prices Europe: Portugal and Bulgaria Lead Gains in Q2 2026
House prices Europe kept climbing in the second quarter of 2026, although the increase was much stronger in some countries than others. Eurostat data cited by Euronews shows that house prices across the European Union rose 4.7% from a year earlier. This was higher than the 3.2% inflation rate recorded during the same period.
Portugal recorded the sharpest rise among the 29 countries covered, with prices up 16.5% year on year. Bulgaria came next at 15.5%, followed by Lithuania at 14.3%. House prices also increased by 13.6% in Slovakia and 12.7% in Croatia. Spain and Romania both recorded a 12.1% rise. Latvia saw an 11.4% increase, while Hungary recorded 10.2%. Prices were also higher in Denmark, Slovenia and Czechia, which posted gains of 9.4%, 9.1% and 8.6%.
There are several factors behind these increases, and they vary from market to market. Mikk Kalmet, a real-estate expert at Global Property Guide, pointed to housing shortages, household income, mortgage conditions and demographic changes as factors affecting prices.
Portugal is one example where limited supply has played a role. Kalmet said demand has been running ahead of available housing in Lisbon, Porto and popular coastal areas. He also pointed to limited new construction, foreign investment and tourism-related demand as factors supporting the market.
Some European markets moved in the opposite direction. House prices fell 2.7% in Finland, 2.2% in Luxembourg and 0.8% in France. Germany recorded a 0.6% increase, while prices in Italy rose by 4%.
After taking inflation into account, house prices across the EU were still 1.5% higher in real terms. Portugal recorded real growth of 12.1%, while Slovakia, Bulgaria, Lithuania, Spain, Latvia, Denmark, Hungary and Croatia all recorded increases above 7%. Kalmet said continued housing shortages and demand could support prices in some markets, although the strong double-digit growth seen in several countries may not last. Higher mortgage costs could also put pressure on demand if interest rates remain high.
