Deloitte Property Index 2025
How are European housing markets doing?
According to the 14th edition of the Deloitte Property Index, the European property market has begun to adapt to new conditions. The latest data, based on a survey in 28 countries across Europe, clearly confirms this.
High interest rates, rising rents and a slowdown in new housing construction have made households and developers more cautious. Yet demand remains strong – especially in cities with significant population growth.
Deloitte Property Index 2025
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Affordable housing in Europe
The most affordable new housing in Europe this year is offered by Denmark, specifically the city of Odense, where residents need an average of 4.9 times their gross annual salary to purchase a 70 square meter apartment. The same value applies to Turin, Italy. Third place is taken by Manchester, UK, with a value of 5.3. The relative affordability of housing in these cities is contributed not only by lower property prices, but also by stable incomes and available financing.
Capital cities: Amsterdam tops the list of inaccessibility
In Amsterdam, those interested in an average apartment must set aside an amount equivalent to 15.4 times their gross annual income. Athens came in second with a value of 15.3.
Prague in third place
Prague ranks third this year with a score of 15.0, once again making it one of the least accessible cities in Europe. The Slovak city of Košice came in fourth with a score of 14.2. These high numbers show that a significant imbalance between demand and supply persists in some metropolises – regardless of income differences.
The unavailability of owner-occupied housing stimulates the growth of the rental housing market. This year, the rental market is experiencing a significant increase in prices not only in Prague but also in regional cities. However, investors and developers continue to focus primarily on the construction of apartments for sale,
says Petr Hána, director of the real estate and construction department at the consulting company Deloitte.
Mortgage markets in Europe
In terms of interest rates, mortgages remain the least advantageous in Hungary (9.35%), Poland (7.67%) and Romania (6.89%). Despite a slight improvement (5.07%), the Czech Republic still ranks among the countries with higher rates.
On the contrary, the lowest rates this year were recorded in Bulgaria (2.83%), Croatia (2.86%) and Turkey (3.01%). Belgium, Luxembourg, Spain and France also remain below the 3.5% threshold. The average rate for the whole of Europe is 4.36%, which represents a slight decrease compared to the previous period and reflects the gradual easing of monetary policy in a number of countries.
Interest in mortgage loans and the purchase of one's own home, especially in large cities and economic centers of the Czech Republic, is still high. It can be assumed that the price of new and subsequently older apartments will continue to grow, thanks to the excess of demand over limited supply. Supply is hampered in particular by the slow pace of construction permits and limits its ability to respond to any market changes,
Miroslav Linhart, a leading financial advisory partner at Deloitte, adds to the situation in Europe.
Average salary for purchasing an apartment
The most expensive countries and cities
Luxembourg became the most expensive country to buy a new home this year, with an average price of 8,760 euros per square meter. Among cities, Tel Aviv, Israel, remains at the top of the list, where the price of a new apartment reaches an average of 13,970 euros per square meter.
Significant price increase
The largest year-on-year increase in new apartment prices was recorded in Krakow, Poland (+28.1%), followed by Jerusalem (+25.2%) and the Albanian cities of Tirana and Vlorë (both +25.0%). Some regional cities in Central and Eastern Europe also showed high growth - for example, the Polish cities of Łódź and Wrocław with a year-on-year increase of over 21%.
Past publications of the Real Estate Index
