House prices (as measured by the House Price Index) increased by 3.3% in the euro area and by 3.1% in the EU in the third quarter of 2021, compared to the previous three months, data published on Friday by the European Statistical Office (Eurostat) show, Agerpres reports.
House prices rose in all EU member states, with the most significant advances in the Czech Republic (7.3%), the Netherlands (5.9%), Lithuania (5.4%) and Ireland (5.1%), and the smallest increases in Romania (0.1%), Finland (0.2%) and Denmark (0.3%).
In the third quarter of 2021, compared to the same period in 2020, house prices increased by 8.8% in the euro area and by 9.2% in the European Union. This is the most significant advance in house prices for the euro area since 2005 (when these data started to be published) and since Q2 2007 for the EU. In Q2 2021, house prices increased by 6.8% in the euro area and by 7.4% in the EU.
House prices rose in all EU Member States in the third quarter of 2021 compared to the same period in 2020, with the advance exceeding 10% in half of the countries. The smallest increase was recorded in Cyprus (2.2%), Italy and Spain (each 4.2%), and the largest increases in the Czech Republic (22%), Lithuania (18.9%), Estonia (17.3%) and the Netherlands (16.8%).
Romanian house prices up 5.9% year-on-year in Q3 2021
In Romania, house prices recorded an annual advance of 5.9% in the third quarter of 2021, following a 3% expansion in the second quarter of 2021.
Separately, Eurostat reported that house prices and rents in the 27 EU Member States continued to rise in the third quarter of 2021, rising by 9.2% and 1.2% respectively compared with the same period in 2020.
Between 2010 and the second quarter of 2011, house prices and rents in the EU followed similar paths, but from the second quarter of 2011 onwards they evolved differently: while rents rose significantly until the third quarter of 2021, house prices fluctuated considerably.
After a severe decline between Q2 2011 and Q1 2013, house prices remained more or less stable in the period 2013 to 2014. Then there was a rapid increase in early 2015, and since then house prices have risen at a faster pace than rents.
From 2010 to the third quarter of 2011, rents rose by 16% and house prices by 39%. When comparing Q3 2021 with 2010, house prices rose more than rents in 18 EU Member States. House prices rose in 23 countries and fell in four: Greece (minus 28%), Italy (minus 12%), Cyprus (minus 6%) and Spain (minus 0.5%). The highest increases were in Estonia (141%), Hungary (118%), Luxembourg (117%), Latvia (106%) and Austria (104%). In Romania, the increase was over 10%.
For rents, the picture is different. Comparing the third quarter of 2021 with 2010, prices increased in 25 member countries and decreased in two: Greece, by 25%, and Cyprus, by 3%. The most significant advance was reported in Estonia (162%), Lithuania (111%) and Ireland (68%). In Romania, the increase was 20%.