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European housing markets face rising costs and affordability challenges
European housing markets are experiencing significant shifts in affordability and pricing. According to the Deutsche Bank Research Institute’s ‘Mapping the World’s Prices 2026’ report, disposable income for couples after paying rent for a central three-bedroom apartment varies widely. Zurich leads with 9,140 euros remaining, while Lisbon reports the lowest at 253 euros. In Switzerland, high net salaries in cities like Zurich and Geneva offset high rents, whereas Southern European cities like Lisbon and Milan face more challenging conditions.
In Croatia, real estate prices continue to rise, with average square meter prices exceeding 3,000 euros. Data from Zagrebačka banka and Ekonomski Lab indicates that the real estate affordability index in Zagreb fell by 4.8 percent in the second quarter of 2026. While housing remains more affordable than in 2008, it is 15 percent less affordable than in early 2017. Existing apartments in the country have increased in price by 163 percent over the last decade.
Germany is addressing rising costs through state-backed programs. Following an 82 percent increase in property prices between 2010 and 2025, the German government, via the KfW development bank, offers various subsidies. These include the KfW 297/298 model for climate-friendly new builds and the KfW 300 program, which provides up to 270,000 euros in financing for families with children. Additionally, the ‘Jung kauft Alt’ program supports families purchasing older, energy-inefficient homes that undergo renovation.
Entities
Deutsche Bank Research Institute · Ekonomski Lab · KfW · Statistisches Bundesamt · Zagrebačka banka
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Residential property prices in Germany increased by 82 percent between 2010 and 2025. fenix-magazin.de
- [○ 1 SOURCE] In Zurich, couples have 9,140 euros left after paying rent for a three-bedroom apartment in the city center. financije.hr
- [○ 1 SOURCE] The real estate affordability index in Zagreb fell by 4.8 percent in the second quarter of 2026 compared to the previous year. www.poduzetnistvo.org
- [○ 1 SOURCE] The KfW 300 program offers up to 270,000 euros in financing for families with children buying homes. fenix-magazin.de
- [○ 1 SOURCE] Lisbon has the lowest disposable income for couples after rent, at 253 euros. financije.hr