The European housing market recovered in the first quarter, as falling residential property prices in Germany and France were offset by strong growth among countries in the south and east of the region.

EU house prices rose 0.4 per cent in the first three months of the year, rebounding from a 0.3 per cent decline in the previous quarter, data from Eurostat showed on Friday. 

House prices continued to fall among the smaller group of Eurozone members, but their 0.1 per cent quarterly decline was much slower than a 0.8 per cent fall in the previous quarter.

Denmark had the biggest fall with prices dropping 2.5 per cent in the first quarter. French prices fell 2.1 per cent and Germany had a 1.1 per cent decline. But these were offset by strong rises in eastern and southern countries, including Bulgaria, Hungary, Poland, Lithuania, Norway and Spain.

Meanwhile Eurozone retail sales rose slightly less than forecast in May, increasing 0.1 per cent from April and 0.3 per cent from a year earlier.