The European housing market is a complex beast, and 2025 was a year of both growth and contrasting trends. While property prices continued to climb across the continent, the story of home sales is a patchwork of rising and falling markets. Belgium and Austria led the charge with annual sales growth exceeding 20%, but it's not a uniform picture. Lithuania, Austria, and Belgium recorded impressive growth, but Croatia, Bulgaria, and Poland saw slight declines. France, the continent's largest economy, ranked first in home sales, with over a million homes changing hands in 2025. However, the story is not just about sales. The market is influenced by a myriad of factors, including mortgage affordability, interest rates, household incomes, employment, consumer confidence, and housing supply. High construction costs and limited new supply are also significant constraints. The market began to recover as Euribor and other bank interest rates stabilised, providing greater predictability for potential buyers. But the story is not just about the numbers. It's about the people and the factors that drive their decisions. For instance, in Croatia, house prices and rents are rising rapidly, yet home sales are declining. This raises a deeper question: what are the domestic factors shaping housing market performance in each country? In my opinion, the European housing market is a fascinating and complex ecosystem. It's a reflection of the economic, social, and cultural forces at play in each country. As we look to the future, it's clear that the market will continue to evolve, influenced by a myriad of factors. But one thing is certain: the story of home sales in Europe is far from over.
