Housing completions and new permits across many parts of Europe have dropped significantly, putting further pressure on the continent’s housing crisis.
After analysing 59 cities in 16 European countries for its first quarter of 2026 residential review, Catella Investment Management has found a 15 percent drop in overall completions in the period between 2023 and 2025 when compared with the timeline between 2019 and 2021. Permits for new construction also fell by 20 percent between 2023 and 2025.
Northern and Central European markets have experienced the largest declines, with finished projects falling by 36 percent in Finland and 39 percent in Sweden. The number of new permits in both countries reduced by 58 percent and 57 percent, respectively. Spain and Portugal are the only markets to report increases in both permits and completions. The new supply, however, remain insufficient to materially ease demand pressure in core markets such as Madrid, Barcelona and Lisbon
