A viewing at a Swedish home up for sale. Photo: Tomas Oneborg/TT
The average cost of snapping up a house in the European Union snuck up by 3.8 percent during 2015.
The data, released by the EU's number crunching agency Eurostat on Tuesday showed that Hungary (10.3 percent) and the United Kingdom (7.1 percent) were in second and third place.
Meanwhile the steepest falls were recorded in Cyprus, Italy and Croatia, which took the bottom trio of spots.
Sweden's position as a country where it's becoming increasingly tricky for young people to buy their first home emerged as the founders of Swedish streaming site Spotify identified the housing crisis
as a core reason they could choose to grow their business in the US rather than Sweden in future.
Daniel Ek and Martin Lorentzon suggested that some international employees felt they had no choice but to buy a property because of Sweden's heated rental sector.
"To demand that young people who come to a new country should directly buy expensive condominiums reduces its attractiveness and is not sustainable in the long run," they wrote in an open letter published on Tuesday.
Housing price inflation
has resulted in Swedish households being among the most indebted in Europe. Mortgage holders on average have a debt that is 366 percent their annual income.
Elsewhere in Scandinavia, house prices in Finland nudged up just 0.7 percent in 2015, according to the latest Eurostat figures, while Norway saw an increase of 5.4 percent and Danes experienced a jump of 6.5 percent.