As hire costs throughout the bloc hold climbing, the largest leap in prices over the previous 5 years was detected in Southern and Japanese Europe. That is in line with a latest Deutsche Financial institution report, which scrutinised 67 cities worldwide and 28 in Europe.
In response to Eurostat, home costs elevated by 27.3% between the primary quarters of 2020 and 2025, whereas rents rose by 12.5% from June 2020 to June 2025. However this report signifies that hire will increase in metropolis centres have been considerably larger than this common.
So, as of 2025, which European cities have the costliest rents? The place are rents probably the most reasonably priced? And which cities have seen the most important will increase since 2020?
Athens is the most affordable, London the costliest
In 2025, the month-to-month hire for a three-bedroom flat within the centre of 28 cities in Europe ranges from €1,080 in Athens to €5,088 (or £4,278) in London. European cities could be grouped into three classes primarily based on hire ranges:
- Rents above €3,000
After London, the costliest locations to hire in Europe are Zurich, Geneva, and Amsterdam, all above €3,800. Swiss cities are the priciest, with rents over €4,250. Dublin, Luxembourg, Paris, Copenhagen, and Munich even have excessive rents, all above €3,000. These cities are main monetary, political, or worldwide centres, driving sturdy demand for housing.
- Rents between €2,000 and €3,000
A number of well-developed cities have mid-range rents between €2,000 and €3,000. Milan, Edinburgh, and Lisbon are on the upper finish of this vary.
Madrid, Stockholm, Berlin, Frankfurt, and Barcelona are a bit extra reasonably priced, with common rents round €2,500.
Birmingham, Brussels, Vienna, and Prague are nearer to €2,100. These cities provide comparatively decrease dwelling prices in comparison with the highest tier.
- Rents under €2,000
Solely 5 European cities have common rents under €2,000. Along with the bottom, Athens, they embrace Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928).
These figures present that Western and Northern Europe have the best rents. Sturdy economies, excessive dwelling requirements, and housing shortages are key components in these cities. Southern and Central Europe have extra blended hire ranges, whereas Japanese and Southeastern Europe stay probably the most reasonably priced.
When non-European international locations are included within the report, New York stands out as an outlier with common rents of €7,676 ($8,388), whereas Cairo is the most affordable at simply €377.
Common salaries within the metropolis centres of Dubai and Sydney exceed €4,000. This makes them dearer than most European cities. Rents in Toronto, Seoul, Tokyo, Moscow, and Shanghai fall into the mid-range at round €2,500.
Rents for a one-bedroom condominium within the centre
Lease for a one-bedroom dwelling largely follows the identical sample as three-bedroom. Nonetheless, some cities change locations within the rating. The worth ratios are additionally totally different.
Nonetheless, London (€2,732 or £2,297) stays the costliest in Europe, whereas Athens (€595) is the most affordable.
Generally, one-bedroom flats value about half as a lot as three-bedroom ones. This share rises to 64% in Oslo and 62% in San Francisco, however drops to 37% in Seoul. That’s why San Francisco surpasses London in one-bedroom hire costs globally.
The place rents elevated probably the most
The report reveals figures in US {dollars}, however we transformed them to euros for a fairer comparability. Adjustments could differ when considered in native currencies.
Between 2020 and 2025, month-to-month hire for a three-bedroom condominium in metropolis centres throughout Europe elevated by between 3% in Helsinki and 206% in Istanbul.
Generally, Southern and Japanese Europe skilled the strongest hire will increase. Lisbon (81%), Prague (73%), and Edinburgh (71%) adopted Istanbul, every with rises of over 70%.
Rents additionally rose considerably in Spain—by 65% in Barcelona and 59% in Madrid. Athens and Warsaw have been the opposite two European cities that noticed simply over 50% will increase.
Lease adjustments range by condominium measurement
For a one-bedroom condominium within the metropolis centre, the best and lowest hire will increase throughout Europe between 2020 and 2025 have been nonetheless seen in Istanbul (191%) and Helsinki (18%). The rise in Helsinki was larger in comparison with that for a three-bedroom flat (3%).
In some cities, the hire improve was larger for three-bedroom flats—resembling Istanbul (15 share factors extra), Prague (23 pp), and Amsterdam (10 pp). Different cities noticed larger will increase for one-bedroom flats, together with Milan (20 pp) and Warsaw (10 pp).
‘Massive cities, greater housing prices’ reveals how housing costs can range considerably inside a rustic. For instance, housing in London is 50% dearer than the UK common.
Revenue ranges matter when discussing hire affordability. ‘Europe’s cities ranked by rent-to-salary ratio’ article compares common incomes with rental prices.