While rents have remained stable, the cost of buying a home in the EU has increased significantly over the past decade.
(CN) — For 29.8 million crowns ($1.2 million), you can buy an 872-square-foot townhouse a five-minute drive from Prague. While the advert for this four-storey house offers forest access and potential, the house now costs about 7.45 million crowns ($310,000) more than if it had been bought last year.
While the central European country recorded the second highest increase in house prices last year, house prices across the European Union have jumped 10.5% since the last year, marking the most drastic year-on-year increase in 17 years, according to data released by Eurostat on Friday. .
Seventeen of the 27 members of the EU recorded annual house price increases of more than 10%.
Residents of Hungary experienced the largest increases in annual housing costs, 20%, followed by Czechia, 25%, and Estonia, 21%. With an increase of only 1%, Cyprus recorded the lowest increase in property prices, followed by Finland and Italy, both of 4%.
Between the last quarter of 2021 and the first quarter of 2022, house prices jumped another 2%.
Malta, Cyprus and Germany all recorded quarterly increases of less than 1%. Between the end of 2021 and the first quarter of 2022, Estonia and Hungary each recorded a 7% increase in housing, the highest in the EU.
Eurostat’s house price index tracks changes in the purchase prices of residential properties, including apartments, single-family homes and townhouses.
Rental prices have also increased over the past decade, but at a much slower rate. Between 2021 and 2022, EU rents increased by an average of 1.4%.
Overall, rent has risen 17% over the past decade, while the cost of buying a home has soared 45%. People living in Estonia, Hungary, Luxembourg, Czechia, Latvia, Lithuania and Austria have seen house prices double since 2010.
Only Cyprus, Italy and Greece have reported declines in house prices over the past 10 years.
Over the past five years, house prices have risen more than inflation in at least 24 EU Member States. On average, housing costs increased by 16% more than inflation in the Czech Republic and by more than 11% in Luxembourg, the Netherlands and Lithuania.
In addition to housing, the EU has tracked increases in everything from energy costs and agricultural products to wine and hotels.
European economists largely attribute the 30-year inflationary spike to latent supply chain disruptions from the pandemic and the Russian-Ukrainian war that disrupted the global energy market.
The EU imports more than a quarter of its crude oil from Russia, along with 46% solid fuels and 40% natural gas.
Energy accounts for only around 10% of household expenditure in the EU, while around 40% goes to services and 20% to food, alcohol and tobacco.
Read the Top 8
Sign up for the Top 8, a roundup of the day’s best stories straight to your inbox Monday through Friday.