Low growth, low inflation, and low interest rates define Europe’s outlook for 2025. While challenges remain, our 2025 Prime Residential Price Forecast reveals continued growth in key luxury residential markets. Additionally, with dwindling savings rates across advanced economies due to interest rate cuts, those households that can afford may consider purchasing a second property as a holiday rental. These properties not only generate secondary income streams but also offer long-term asset appreciation.

• Existing-home sales ascended 4.8% in November to a seasonally adjusted annual rate of 4.15 million, the swiftest pace since March (4.22 million). Sales accelerated 6.1% from one year ago, the largest year-over-year gain since June 2021 (+23.0%).
• The median existing-home sales price rose 4.7% from November 2023 to $406,100, the 17th consecutive month of year-over-year price increases.