The cost of homes within the eurozone fell by 1.1% during the last three month of 2023. However, within the EU overall, prices were slightly higher.
One of the countries hardest hit by a fall in property prices was Luxembourg where house prices slumped 14.4%, following a 13.9% fall in the preceding three months.
Within the eurozone, average house prices were down by 1.1% in the last three months of 2023 compared with the year before, according to the House Price Index, an indicator by Eurostat.
House prices for the European Union as a whole showed a slight climb of 0.2% increase for the year.
The results show that average prices are not dropping as much as before – the same index was down 2.2% and 1.1% in the eurozone and the EU respectively for the third quarter of last year.
The biggest drop in prices was detected in Luxembourg
Luxembourg property prices fell to their lowest level since the end of 2020. The drop was put down to a combination of high interest rates and rental investors losing their appetite. There was a significant decline in housing market transactions. These, by the end of 2023, were effectively half the number of deals done in 2022.
Eight countries in Europe reported falling house prices for the final three months of 2023, although less dramatic than Luxembourg’s. Prices in Germany dropped by 7.1% while Finland saw a fall of 4.4%.
The highest property price rises were recorded in Poland, where prices jumped 13%. Bulgaria and Croatia were next in line, with property prices showing a climb of 10.1% and 9.5% respectively.
Compared with the previous three months ending in September, prices were down in 11 countries in total. France saw a drop of 2.7%, while Latvia’s prices slid 2.5%. News from Italy was more cheerful as prices remained steady.
The highest increases during that period were recorded in Poland, up 4.8%, Croatia, up 3.4% and Ireland, which saw a 3% rise.
