European home sales jump in 2025, Croatia's market contracts

Europe’s housing market regained momentum in 2025, with home‑sale volumes rising sharply in several countries. Belgium and Austria posted annual sales growth above 20%, while Lithuania (22.8 %), Slovenia (29.9 %) and Luxembourg (18.6 %) also saw double‑digit gains. France experienced a notable turnaround, moving from a decline in 2024 to growth in 2025, and Spain continued modest expansion of 5.4 %. The surge was driven by improved mortgage affordability, lower interest rates and stronger household incomes, according to real‑estate advisor Mikk Kalmet: “Residential property transactions are mainly influenced by mortgage affordability, interest rates, household incomes, employment, consumer confidence and housing supply.”

In contrast, Croatia recorded a 4.1 % fall in home‑sale transactions, joining a few other markets (Bulgaria, Poland) that posted declines. Despite the sales drop, Croatian house prices climbed 14.3 % and rents surged 39.1 % year‑on‑year, highlighting domestic pressures on the market. Local analysts warned that the falling sales amid soaring rents constitute an “alarm” for Croatia’s real‑estate sector.

Overall, the data suggest a broad recovery across much of the EU, while individual countries such as Croatia face divergent trends driven by local supply constraints and price pressures.