Portugal leads EU house price surge with 16.5% annual rise in second quarter of 2026

In the second quarter of 2026, Portugal recorded the EU's highest annual house price increase at 16.5%, according to Eurostat. Bulgaria and Lithuania followed with 15.5% and 14.3% rises, while Finland, Luxembourg, and France saw declines. Overall, EU house prices rose 4.7% year-on-year, outpacing inflation. In Portugal, the median asking price reached €3,228 per square meter in September, with Lisbon the most expensive city. Analysts attribute the growth to housing shortages, income growth, and mortgage conditions, but expect higher interest rates to slow demand.