As rent prices across the bloc keep climbing, the biggest jump in costs over the past five years was detected in Southern and Eastern Europe. This is according to a recent Deutsche Bank report, which scrutinised 67 cities worldwide and 28 in Europe.
According to Eurostat, house prices increased by 27.3% between the first quarters of 2020 and 2025, while rents rose by 12.5% from June 2020 to June 2025. But this report indicates that rent increases in city centres were significantly greater than this average.
So, as of 2025, which European cities have the most expensive rents? Where are rents the most affordable? And which cities have seen the largest increases since 2020?
Athens is the cheapest, London the most expensive
In 2025, the monthly rent for a three-bedroom flat in the centre of 28 cities in Europe ranges from €1,080 in Athens to €5,088 (or £4,278) in London. European cities can be grouped into three categories based on rent levels:
- Rents above €3,000
After London, the most expensive places to rent 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 also have high rents, all above €3,000. These cities are major financial, political, or international centres, driving strong demand for housing.
- Rents between €2,000 and €3,000
Several well-developed cities have mid-range rents between €2,000 and €3,000. Milan, Edinburgh, and Lisbon are on the higher end of this range.
Madrid, Stockholm, Berlin, Frankfurt, and Barcelona are a bit more affordable, with average rents around €2,500.
Birmingham, Brussels, Vienna, and Prague are closer to €2,100. These cities offer relatively lower living costs compared to the top tier.
- Rents below €2,000
Only five European cities have average rents below €2,000. In addition to the lowest, Athens, they include Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928).
These figures show that Western and Northern Europe have the highest rents. Strong economies, high living standards, and housing shortages are key factors in these cities. Southern and Central Europe have more mixed rent levels, while Eastern and Southeastern Europe remain the most affordable.
When non-European countries are included in the report, New York stands out as an outlier with average rents of €7,676 ($8,388), while Cairo is the cheapest at just €377.
Average salaries in the city centres of Dubai and Sydney exceed €4,000. This makes them more expensive than most European cities. Rents in Toronto, Seoul, Tokyo, Moscow, and Shanghai fall into the mid-range at around €2,500.
Rents for a one-bedroom apartment in the centre
Rent for a one-bedroom dwelling mostly follows the same pattern as three-bedroom. However, some cities change places in the ranking. The price ratios are also different.
Still, London (€2,732 or £2,297) remains the most expensive in Europe, while Athens (€595) is the cheapest.
In general, one-bedroom apartments cost about half as much as three-bedroom ones. This share rises to 64% in Oslo and 62% in San Francisco, but drops to 37% in Seoul. That’s why San Francisco surpasses London in one-bedroom rent prices globally.
Where rents increased the most
The report shows figures in US dollars, but we converted them to euros for a fairer comparison. Changes may differ when viewed in local currencies.
Between 2020 and 2025, monthly rent for a three-bedroom apartment in city centres across Europe increased by between 3% in Helsinki and 206% in Istanbul.
In general, Southern and Eastern Europe experienced the strongest rent increases. Lisbon (81%), Prague (73%), and Edinburgh (71%) followed Istanbul, each with rises of over 70%.
Rents also rose significantly in Spain—by 65% in Barcelona and 59% in Madrid. Athens and Warsaw were the other two European cities that saw just over 50% increases.
Rent changes vary by apartment size
For a one-bedroom apartment in the city centre, the highest and lowest rent increases across Europe between 2020 and 2025 were still seen in Istanbul (191%) and Helsinki (18%). The increase in Helsinki was higher compared to that for a three-bedroom flat (3%).
In some cities, the rent increase was higher for three-bedroom apartments—such as Istanbul (15 percentage points more), Prague (23 pp), and Amsterdam (10 pp). Other cities saw greater increases for one-bedroom flats, including Milan (20 pp) and Warsaw (10 pp).
‘Big cities, bigger housing costs’ shows how housing prices can vary significantly within a country. For example, housing in London is 50% more expensive than the UK average.
Income levels matter when discussing rent affordability. ‘Europe’s cities ranked by rent-to-salary ratio’ article compares average incomes with rental costs.
