Europe news around the housing market turned notably brighter in 2025, as home sales increased in most countries despite still-elevated property prices. Fresh market data shows that lower borrowing costs, improved confidence and delayed buyer demand helped revive activity across much of the continent, offering an important snapshot for readers following ireland news, irish news and wider European economic trends.
Across 20 European countries with available data, 17 recorded annual growth in residential sales during 2025. The strongest percentage jump came in Slovenia, where transactions rose by 29.9%, while Lithuania, Austria and Belgium also posted gains above 20%.
Europe News: Where Home Sales Increased the Most
The broad trend points to a recovery in buyer activity after a period of pressure from high interest rates. As financing conditions improved, more households returned to the market.
- Slovenia: +29.9%
- Lithuania: +22.8%
- Austria: +21.4%
- Belgium: +20.2%
- Luxembourg: +18.6%
- Hungary: +17.3%
- Netherlands: +13.9%
- Denmark: +12.7%
- France: +11.2%
- Portugal: +10.5%
Other countries including Latvia, Finland and Norway also posted solid gains close to 10%. Spain, one of Europe’s largest housing markets, registered a 5.4% increase, showing demand remained resilient.
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Why Europe’s Housing Market Rebounded
This Europe news story is closely tied to borrowing conditions. Housing transactions are heavily influenced by mortgage affordability, employment, household income, consumer sentiment and the supply of available homes. In 2025, interest rate stabilisation helped unlock pent-up demand from buyers who had previously waited on the sidelines.
At the same time, the rebound did not mean housing became cheap. Prices continued rising in many countries, while limited new construction and high building costs kept supply under pressure. That mix created a market where demand recovered faster than inventory.
France Led in Total Sales Volume
France stood out in absolute terms, with more than one million homes sold in 2025, the highest figure among the countries compared. That made France one of the clearest turnaround stories in Europe news coverage, especially after weaker momentum the year before. Interestingly, French house prices were broadly flat over the following year, rising by only 0.1% between the first quarters of 2025 and 2026.
The Netherlands recorded 265,000 sales, while Hungary, Belgium, Portugal and Norway each logged between 130,000 and 160,000 transactions. Slovenia, despite leading percentage growth, had the smallest market size, with around 11,000 homes sold.
Countries Where Sales Still Fell
Not every market joined the recovery. Croatia recorded the sharpest decline, with home sales down 4.1%, followed by Bulgaria at -2.5% and Poland at -1.1%. Croatia was especially notable because prices and rents continued to surge even as sales weakened. House prices there rose 14.3% year on year, while rents climbed 39.1%, the strongest rental increase in Europe.
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What This Means for Buyers and Investors
For anyone tracking europe news, the 2025 housing data suggests a market moving back toward expansion, though unevenly. Lower borrowing costs helped demand recover, but supply shortages and construction costs remain major obstacles. For ireland news and irish news audiences, the wider European picture matters because it highlights the same pressures seen in many housing debates: affordability, scarce stock and rate-sensitive demand.
The key takeaway from this Europe news update is clear: Europe’s property market recovered in activity during 2025, but structural supply challenges mean affordability pressures are far from over.
FAQs
Which European country had the biggest rise in home sales in 2025?
Slovenia recorded the largest percentage increase, with home sales up 29.9%.
Which country sold the most homes in 2025?
France led by volume, with more than one million homes sold.
Did all European countries see growth?
No. Croatia, Bulgaria and Poland recorded declines in home sales in 2025.
Why did home sales rise in 2025?
The main drivers were improved mortgage conditions, stabilising interest rates and demand returning after delays during the high-rate period.
