Italy is the best country in Europe for buying or renting property.

Europe offers a variety of options for buying or renting a home, each with a unique charm, amenities and lifestyle. According to a study conducted by 123Jaloezie, a Dutch website analyzing the most attractive places in Europe to find a home to buy or rent, Italy ranks first among the best European countries to buy or rent a home. Let's break down why.

Italy, the most popular country in Europe for real estate.

Exploring the availability of real estate in each EU country, how the prices for buying and renting properties have increased since 2015, and the number of property searches over the past year, a study conducted by 123Jaloezie identified the most popular areas for real estate investment in Europe.

At the top of the list of the most popular areas for real estate investment in Europe is Italy;

The country recorded the lowest growth in housing prices since 2015, at just 6.90%, and a very low average increase in rental prices of only 2.60%. Over 968,000 property searches were conducted in Italy in the last 12 months, indicating a growing demand for real estate in the country.

On the other hand, Hungary was listed as the least desirable country in Europe for those looking to buy or rent a home.

Hungary has experienced an incredibly high increase in real estate prices, which have more than doubled on average since 2015. Additionally, relatively few property searches are focused on Hungary, with only 58,900 in the last 12 months.

Top three European countries for buying a house

• Italy
  • Real estate popularity rating: 8.81
  • Italy has the highest popularity rating for real estate according to a study, with a score of 8.81, making it a desirable location for those looking for a new home in Europe. Since 2015, the country has recorded very low average growth in rental prices and real estate values, at 2.60% and 6.90% respectively. There have been over 968,000 real estate searches in Italy in the last 12 months, indicating significant public interest.
• Spain
  • Real estate popularity rating: 8.71
  • Spain is the second most popular real estate destination in the European Union with a score of 8.71 out of 10. Spain had more than 100 million tourists in 2022 and recorded the highest number of real estate-related searches, more than 1.1 million.

The least popular countries in Europe for buying a home

• Hungary
  • Real estate popularity rating: 0.77
  • Hungary recorded the lowest real estate popularity score of just 0.77 out of 10. This score can be attributed to incredibly high real estate price growth, which has more than doubled on average since 2015. Real estate in the country is relatively unaffordable relative to local disposable income, resulting in a low affordability score. Additionally, relatively few real estate searches are focused on Hungary, with just 58,900 in the last 12 months.
• Lithuania
  • Real estate popularity rating: 0.89
  • Lithuania ranks second among the least popular countries in the European Union in terms of real estate popularity, with a score of 0.89, ahead of Hungary by 0.12 points. Although property prices have not risen as sharply as in Hungary, they have nearly doubled in Lithuania since 2015, while rental prices have increased slightly faster. The country received just under 34,000 real estate searches.
• Czech Republic
  • Real estate popularity rating: 1.16
  • The Czech Republic received the third lowest real estate popularity score in the survey at 1.16 out of 10. The combination of high real estate price growth, low relative affordability and few searches is only partially offset by slow rental price growth in this central European country.

Methodology

To determine which EU countries are the most attractive for potential home buyers, 123jaloezie compared the 27 EU member states based on four factors:

• the number of real estate searches over the past 12 months, extracted from Google Keyword Planner;
• the rating that each country received according to the Numbeo real estate price index;
• ratings for 2022 received by each country according to the Eurostat real estate price index;
• Average annual index for rental real estate from Eurostat.