House prices rose by 4.7% in the EU in the first quarter of 2018, year-on-year, and by 0.7% compared to the previous quarter. Price growth in Hungary has been much higher, according to Eurostat, the statistical office of the European Union.
Eurostat measured house prices based on the House Price Index (HPI), the price changes of all residential properties purchased by households (flats, detached houses, terraced houses, etc.), both newly built and resale, independently of their final use and independently of their previous owners. The HPI is measured against the preceding quarter and against the corresponding quarter of the previous year.
Compared with the fourth quarter of 2017, average Q1 2018 house prices rose by 0.6% in the euro area and by 0.7% across the whole EU. Compared with the previous quarter, the highest increases were recorded in Latvia (+7.5%), Hungary and Slovenia (both +4.4%), as well as in Portugal (+3.7%). Decreases were registered in Malta (-4.7%), Cyprus (-1.8%), and Sweden (-0.8%).
Year-on-year, the highest annual increases in house prices in the first quarter of 2018 were recorded in Latvia (+13.7%), Slovenia (+13.4%), Ireland (+12.3%), and Portugal (+12.2%). Hungary is not much behind in price growth rate, at 11.5%. Prices fell in Sweden and Italy (both -0.4%), as well as in Finland (-0.1%).