European real estate markets show divergent trends in late 2026

European real estate markets are showing divergent trends as of late 2026. In Belgium, the Federation of Notaries (Fednot) reported a 2.2% decline in housing sales during the third quarter of 2026 compared to the previous year. This slowdown is particularly evident in Wallonia, where sales dropped by 5.1%. Rising long-term interest rates have significantly impacted the market, with average 20-year mortgage rates increasing from 3.40% in October 2025 to 4.06% in October 2026.

In France, regional markets exhibit varied stability. Lyon saw apartment prices rise by 0.73% to 4,714 euros per square meter in October, while house prices saw a slight decrease of 0.89%. Grenoble reported relative stability, with apartment prices remaining nearly unchanged and house prices increasing by 0.43%. In Le Mans, apartment prices grew by 0.88%, contrasting with a 0.66% decline in house prices.