Croatia leads EU rent surge as housing prices rise across Europe

Eurostat data for the first quarter of 2026 show that house prices in the European Union increased by 5.1 % year‑on‑year, while rents rose by 3.0 %, both well above the EU inflation rate of 2.3 %. The price growth was seen in all 28 EU member states covered (plus Norway and Iceland) except Finland, where prices fell 2 %. Portugal posted the strongest price gain at 17.8 %, followed by Bulgaria (14.8 %), Slovakia (14.4 %) and Croatia (14.3 %). Among the major economies, Spain’s house prices rose the most (12.8 %) while France’s were virtually unchanged (+0.1 %).

Croatia stands out for rental growth: rents jumped roughly 39–40 % over the same period, the highest increase among the 30 countries surveyed and far above the EU average. Analysts attribute the surge to Croatia’s attractiveness for both short‑term and long‑term rentals compared with more established markets such as Spain and southern France. The sharp rent rise adds to broader affordability pressures, as household spending on housing already consumed 18.9 % of disposable income in 2025, exceeding 30 % in some countries.

The overall trend reflects strong demand, limited new supply and rising construction costs across Europe, driving price and rent growth that outpaces inflation and affecting consumers in many member states.