Geneva, Switzerland, was the most expensive city to buy an apartment in Europe in the first quarter of 2024. The square meter price in Geneva was nearly 15,650 euros in that quarter, about 2,000 euros higher than the second city in the ranking, Zurich. Cost of rent Rents across the major cities in Europe increased significantly in 2023. 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. Mortgage rates The average mortgage interest rates across Europe in 2023 were all under five percent, except in Czechia, Romania, Hungary, and Poland. On an individual level, a difference of one percent would most likely mean thousands of euros in interest on the mortgage a person is paying, making timing key in house purchasing. Mortgage interest rates tend to be lower in Nordic countries due to the financial stability and reliability of its borrowers. Other factors that influence the mortgage interest rates include inflation, economic growth, monetary policies, the bond market and the overall conditions of the housing market. More stable markets also tend to have higher average prices.

A table comparing the cost of living in various European Union countries, including expenses for rent, utilities, food, and transportation in major cities

High inflation driven by rising energy and food costs are causing a severe cost of living crisis in Europe. As of September 2022, the majority of people surveyed in seven European countries advised they had curbed their spending as a consquence, ranging from 69 percent in Italy to 54 percent in Sweden.

Luxembourg stands out as the European leader in quality of life for 2025, achieving a score of 220 on the Quality of Life Index. The Netherlands follows closely behind with 211 points, while Albania and Ukraine rank at the bottom with scores of 104 and 115 respectively. This index provides a thorough assessment of living conditions across Europe, reflecting various factors that shape the overall well-being of populations and extending beyond purely economic metrics. Understanding the quality of life index The quality of life index is a multifaceted measure that incorporates factors such as purchasing power, pollution levels, housing affordability, cost of living, safety, healthcare quality, traffic conditions, and climate, to measure the overall quality of life of a Country. Higher overall index scores indicate better living conditions. However, in subindexes such as pollution, cost of living, and traffic commute time, lower values correspond to improved quality of life. Challenges affecting life satisfaction Despite the fact that European countries register high levels of life quality by for example leading the ranking of happiest countries in the world, life satisfaction across the European Union has been on a downward trend since 2018. The EU's overall life satisfaction score dropped from 7.3 out of 10 in 2018 to 7.1 in 2022. This decline can be attributed to various factors, including the COVID-19 pandemic and economic challenges such as high inflation. Rising housing costs, in particular, have emerged as a critical concern, significantly affecting quality of life. This issue has played a central role in shaping voter priorities for the European Parliamentary Elections in 2024 and becoming one of the most pressing challenges for Europeans, profoundly influencing both daily experiences and long-term well-being.

Percentage of the population living in a household where total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances).

According to a mid-2024 index, *********** was the most expensive country to live in Europe, with an index score of ****.******** followed in the second place with around ** points less.

This is a simple overview of rental costs for a 1 bed apartment in major european cities.

Data comes from Numbeo: https://www.numbeo.com/cost-of-living/region_prices_by_city?itemId=27&region=15...

These data were gathered in order to determine the cost of living as well as the cost of production in selected industries in the United States and several Western European countries. The study is comprised of nine industries (cotton and woolen textiles, glass, pig iron, bar iron, steel, bituminous coal, coke, and iron ore) and contains family-level information on the household composition, income and expenditures of workers in these industries. Additional topics covered include sources of income, ages and sex of children, detailed occupation of the household head, detailed expenditures for food as well as nonfood items, and characteristics of the family's dwelling units.

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.

Consumer Price Index CPI in European Union decreased to 133.23 points in May from 133.24 points in April of 2025. This dataset provides - European Union Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar.

Cost-of-living index, data set includes measurements as well as changes to the previous month, monthly time series from January 1947

Table showing the country rankings based in the different metrics analysed

The files include two datasets and a readme-file - stored in the Journal Data Archive.

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by age groups.

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by income quintile.

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by household type.

Analysis of ‘Housing cost overburden rate by household type - EU-SILC survey’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://data.europa.eu/data/datasets/9h7bs2nfebyfmvnnl6qcq on 30 September 2021.

--- Dataset description provided by original source is as follows ---

This indicator is defined as the percentage of the population living in a household where the total housing costs (net of housing allowances) represent more than 40% of the total disposable household income (net of housing allowances) presented by household type.

--- Original source retains full ownership of the source dataset ---

Rising prices, inflation, and the cost of living were seen by almost a quarter of the people in the European Union as being one of the two most important issues facing their country in 2023. Prior to the most recent month, concern about rising prices and inflation was highest in 2022, when between 53 and 54 percent of people in the EU stating this was an important issue. Concerns over rising prices have slightly declined among EU citizens in 2024, with 33 percent stating it was one of the two most important issues facing their country.

The average transaction price of new housing in Europe was the highest in Norway, whereas existing homes were the most expensive in Austria. Since there is no central body that collects and tracks transaction activity or house prices across the whole continent or the European Union, not all countries are included. To compile the ranking, the source weighed the transaction prices of residential properties in the most important cities in each country based on data from their national offices. For example, in Germany, the cities included were Munich, Hamburg, Frankfurt, and Berlin. House prices have been soaring, with Sweden topping the ranking Considering the RHPI of houses in Europe (the price index in real terms, which measures price changes of single-family properties adjusted for the impact of inflation), however, the picture changes. Sweden, Luxembourg and Norway top this ranking, meaning residential property prices have surged the most in these countries. Real values were calculated using the so-called Personal Consumption Expenditure Deflator (PCE), This PCE uses both consumer prices as well as consumer expenditures, like medical and health care expenses paid by employers. It is meant to show how expensive housing is compared to the way of living in a country. Home ownership highest in Eastern Europe The home ownership rate in Europe varied from country to country. In 2020, roughly half of all homes in Germany were owner-occupied whereas home ownership was at nearly ** percent in Romania or around ** percent in Slovakia and Lithuania. These numbers were considerably higher than in France or Italy, where homeowners made up ** percent and ** percent of their respective populations.For more information on the topic of property in Europe, visit the following pages as a starting point for your research: real estate investments in Europe and residential real estate in Europe.

The threshold is set at 60 % of the national median equivalised disposable income (after social transfers). It is expressed in Purchase Parity Standards (PPS) in order to take into account differences in cost of living across EU Member States.