Global market in recovery, Europe in the lead

After a slowdown in 2022-2023, the global market seems to be consolidating and Europe seems to be the region with the fastest growing prices, according to Knight Frank's Global House Price Index - the quarterly indicator used by the company to measure the development of residential prices in the housing market - for the second quarter of 2025

The ten countries with the strongest real estate price increases include no less than eight countries on the European continent. At the top, below Turkey, which dominates the nominal ranking, is North Macedonia, with a year-on-year increase of 19.9% (18.5% if calculated net of inflation), followed by Portugal (18.1% nominal increase - 15.4% real increase) and Bulgaria (15.5% nominal, 10.7% real increase).

Continuing with double-digit increases were Croatia (13.1% - 9.6%), Slovakia (12.8% - 8.1%), Hungary (12.5% - 7.5%), Lithuania (11.3% - 7.4%) and Spain (10.4% - 8%). Robust growths also for the Netherlands (9.3% - 6%) and Ireland (8% - 6.1%).

Italy ranks 32nd, with a nominal average increase of 3.9% and a real average increase of 2.2% year-on-year.

"Global house price growth has stabilised in the wake of previous rate cuts, with Europe leading the way in this recovery phase," notes Liam Bailey, Global Head of Research at Knight Frank. "However, the balance of risks still remains tied to inflation and borrowing costs. A further slight easing of monetary policies would go a long way towards turning the current tentative momentum into a firmer recovery."