Amsterdam is set to maintain its position as Europe's most expensive city for apartment rentals in 2025, with median costs reaching 2,500 euros per month for a furnished unit. This figure is double the rent in Prague and significantly higher than other major European capitals like Paris, Berlin, and Madrid. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Factors driving rental costs across Europe The disparity in rental prices across European cities can be attributed to various factors. In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing. This trend contributes to increased demand and potentially higher living costs in these nations. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90 percent, which may help keep rental prices lower in those regions. Housing affordability and market dynamics The relationship between housing prices and rental rates varies significantly across Europe. As of 2024, countries like Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio indices. This indicates a widening gap between property values and rental costs since 2015. The affordability of homeownership versus renting differs greatly among European nations, with some countries experiencing rapid increases in property values that outpace rental growth. These market dynamics influence rental costs and contribute to the diverse rental landscape observed across European cities.

In the first quarter of 2025, Amsterdam was the most expensive city to rent a furnished private room among the 27 European cities surveyed. It was also among the top ranking most expensive cities to rent a furnished one-bedroom flat and studio apartment. One of the main factors driving high rents across European cities is the same as any other consumer-driven business. If demand outweighs supply, prices will inflate. The drive for high paid professionals to be located centrally in prime locations, mixed with the low levels of available space, high land, and construction costs, all keep rental prices increasing.

In 2024, the most expensive residential rental market in Europe was Luxembourg with rental costs of approximately *****euros per square meter.Paris and Dublin followed with rental costs of ***and *****euros per square meter. Rents increased across most markets - a trend that could also be observed in the housing market. How much does an apartment cost in different European cities? Renting a furnished studio apartment in some of the leading cities in Europe can cost anywhere between *** euros monthly (Budapest) and ***** euros (Amsterdam) per month. For a furnished one-bedroom apartment in Paris, France, one may be expected to pay on average ***** euros monthly. Which countries have the most affordable housing? The house price to rent ratio is an indicator of the affordability of owning housing over renting across European countries and is calculated as the nominal house prices divided by a rent price index. The higher the ratio, the more the gap between house prices and rental rates has widened since 2015 when the index base was 100. As of the first quarter of 2025, Finland, Italy, and Romania had the lowest house price to rent ratio, meaning that buying a house was most affordable there compared to renting.

During 2018, Paris was the most expensive European city to rent an Apartment, at 2.85 thousand U.S. dollars per month. London had an average rental cost of over 300 U.S. dollars less than the Capital of France. Cities within Western Europe have a higher rental price than their Eastern counterparts with Moscow seeing the average cost of rent over one thousand U.S. dollars per month lower than Paris.

Supply and demand

One of the main factors driving high rents across European cities is the same as any other consumer driven business. If demand outweighs supply, prices will inflate. The drive for high paid professionals to be located centrally in prime locations, mixed with the low levels of available space, high land and, construction costs all help keep rental prices increasing.

Renters now outweigh home owners

In London, the number of private renters has increased dramatically from 2008. Increasing house prices as well as standard costs of living have seen more and more people unable to get on to the property ladder, and are therefore forced onto the rental markets for longer. This being said 2019 has become a great time for first-time buyers as interest rates remained historically low.

This statistic presents the monthly rental prices for a furnished two-room apartment in selected European cities as of 2015. London led the ranking, with an average price per typically sized newly-built apartment amounting up to ***** U.S. dollars. It was followed closely by Geneva, with the monthly rental cost of ***** U.S. dollars.

In 2024, the average apartment rent in Bulgaria ranged between three and nine euros per square meter. The province with the highest rents was Sofia City, where renting an apartment cost on average nine euros per square meter. Varna, Burgas, and Blagoevgrad had the second-highest rental price, at seven euros per square meter. In Bulgaria, less than 15 percent of households lived in a rented home. Nevertheless, the rental market has been growing in recent years, with rent prices rising faster than the average in the euro area.

In 2024, the average apartment rent in Croatia ranged between 13 and 29 euros per square meter. The county with the highest rents was Split-Dalmatia, where renting an apartment cost on average 29 euros per square meter. In Croatia, less than 10 percent of households lived in rented housing. Nevertheless, the rental market has been growing in recent years, with rent prices rising faster than the average in the euro area.

One of the main factors driving high rents across European cities is the same as any other consumer-driven business. If demand outweighs supply, prices will inflate. The drive for high paid professionals to be located centrally in prime locations, mixed with the low levels of available space, high land, and construction costs, all keep rental prices increasing. Renting in European cities In 2025, Munich was the most expensive city to rent a furnished studio among the 23 cities surveyed. At 1,457 euros per month, renting a studio in Munich cost nearly twice the price of a studio in Athens. For one-bedroom apartments or a furnished private room, the most expensive city was Amsterdam. Homeownership in Europe In many European countries owning your home is more commonplace than renting – for instance, in Romania, the homeownership rate is over 95 percent. In the UK, affordability of housing is one of the leading housing concerns, with the majority of adults agreeing that first-time buyers getting on a property ladder is a very or somewhat serious problem.

In Portugal, the average price per square meter of housing for rent was 15.5 euros in December 2023. The Lisbon region registered the highest value at over 18 euros per month. In April 2024, average prices increased in all regions, amounting to a national average of more than 16 euros per square meter. By July 2025, the national average was 16.7 euros, while reaching 19.6 euros in the Lisbon region.

The United Kingdom (UK) is the most expensive European country for prime industrial rent. The monthly rent for industrial space in London Heathrow in the second quarter of 2025 cost **** euros per square meter. Switzerland, Norway, and Ireland, were the other European countries where the average annual cost of industrial prime rents in the capital city exceeded one ***euros per square meter.

In the fourth quarter of 2023, the average rent price per square meter in major European cities was 18.4 euros. London had the highest price by far at 36.1 euros per square meter, followed by Amsterdam and Oslo at 27.3 and 26.7 euros, respectively. In contrast, Seville had the lowest average price, at 11 euros per square meter.

As of October 2024, Bucharest and Cluj-Napoca were the most expensive cities to live in. On average, renting a studio apartment costed 400 euros per month in Cluj-Napoca. Arad was the most affordable city to live in from the given list - 448 euros for a three-room apartment.

In 2024, Switzerland had the highest average annual rent for self-storage facilities in Europe. The average annual rental price for self-storage facilities in Switzerland was 456 euros per square meter. Austria and the United Kingdom (UK) followed closely, with the mean annual average rent for self-storage stores ranging from 330 to 340 euros per square meter. On the other hand, the rents for self-storage spaces in Norway and Lithuania were relatively low, with both places paying 201 and 196 euros per square meter, respectively.

The average rent price of residential property in Austria has increased year-on-year since the beginning of the reporting period. In 2023, the average rent in Austria was approximately 9.4 euros per square meter. Salzburg had the highest prices, at 11.3 euros per square meter. Across the major European housing markets, house prices and rents have been increasing steadily in recent years.

Geneva stands out as Europe's most expensive city for apartment purchases in early 2025, with prices reaching a staggering 15,720 euros per square meter. This Swiss city's real estate market dwarfs even high-cost locations like Zurich and London, highlighting the extreme disparities in housing affordability across the continent. The stark contrast between Geneva and more affordable cities like Nantes, France, where the price was 3,700 euros per square meter, underscores the complex factors influencing urban property markets in Europe. Rental market dynamics and affordability challenges While purchase prices vary widely, rental markets across Europe also show significant differences. London maintained its position as the continent's priciest city for apartment rentals in 2023, with the average monthly costs for a rental apartment amounting to 36.1 euros per square meter. This figure is double the rent in Lisbon, Portugal or Madrid, Spain, and substantially higher than in other major capitals like Paris and Berlin. The disparity in rental costs reflects broader economic trends, housing policies, and the intricate balance of supply and demand in urban centers. Economic factors influencing housing costs The European housing market is influenced by various economic factors, including inflation and energy costs. As of April 2025, the European Union's inflation rate stood at 2.4 percent, with significant variations among member states. Romania experienced the highest inflation at 4.9 percent, while France and Cyprus maintained lower rates. These economic pressures, coupled with rising energy costs, contribute to the overall cost of living and housing affordability across Europe. The volatility in electricity prices, particularly in countries like Italy where rates are projected to reach 153.83 euros per megawatt hour by February 2025, further impacts housing-related expenses for both homeowners and renters.

London's prime high street retail location commanded the highest rents in Europe, with monthly rates reaching a staggering 2,786 euros per square meter in the second quarter of 2025. This figure dwarfs other major European cities, with Milan coming in second at 1,667 euros per square meter. The stark difference in rental prices highlights the premium placed on prime retail spaces in Europe's financial capital, reflecting the city's status as a global shopping destination. While London boasts the highest retail rents, the UK as a whole remains a significant player in retail real estate investment. In 2023, the UK attracted 6.6 billion euros in retail real estate investment, accounting for approximately a quarter of the total investment in the sector across Europe.

In the second quarter of 2024, the average residential rent price in Greece ranged between 3.6 euros per square meter and 35.7 euros per square meter, depending on the area. Chalkidiki had the highest average residential rent price in the country by far, at 35.71 euros per square meter, followed by the Cyclades at 17.65 euros per square meter and the southern part of Athens at 12.5 euros per square meter. In contrast, Kilkis prefecture had the lowest rental price per square meter at 3.57 euros.

The average rent price in Czechia rose between 2019 and 2023. In the capital city, Prague, rents increased from 293 to 348 Czech koruna per square meter during that period. In Brno, the average rent rose from 236 to 293 Czech koruna per square meter.

Prime locations for shopping centers include main streets and city centers of European cities, and factors such as the main flow of customers, the amount of space to handle the sales volume expected, as well as the direct competition and neighbors all have a great impact on projected sales. Specifically, space requirements must be carefully tailored to usage requirements, as rent typically proves to be high.

Rental prices of prime shopping centers real estate in Europe

According to the data presented, the most expensive retail space in shopping centers was rented out in Frankfurt, where on average prices were 280 euros per square meter per month as of June 2021. In comparison, the most expensive cities for high street retail were London and Paris, where monthly prime rents were close to 2,000 euros per square meter.

Coronavirus and commercial real estate

Among the many impacts of the coronavirus (COVID-19) are the drop in foot traffic and sales at high street shops and shopping centers due to the lockdown and social distancing measures, but also the increase of e-commerce. Shopping out of the convenience of your own home increases the focus on the importance of logistical warehousing real estate.

In 2024, the average apartment rent in Cyprus ranged between 11 and 22 euros per square meter. The district with the highest rents was Limassol, where renting an apartment cost on average 22 euros and a house, 16 euros per square meter. In Cyprus, one in three households lived in rented housing.