Rental costs in the heart of European cities and their recent fluctuations since the year 2020.
European Rental Markets Show Significant Variations
European cities have varying rental prices for apartments, with London leading as the most expensive city for three-bedroom apartments, averaging around €5,088 per month [1][3]. Following London, Zurich, Geneva, and Amsterdam also have high rents, exceeding €3,800.
On the other hand, the most affordable rents for a three-bedroom apartment in European city centres can be found in Athens (€1,080), Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928) [1][3]. These cities offer considerably lower rental costs compared to the major financial and international hubs.
The data reflects strong disparities in European rental markets, driven by factors such as financial, political, and international city status boosting demand in top-tier cities, while affordability remains in cities less central to global finance or government [1][2][3].
When comparing one-bedroom and three-bedroom apartments, Milan and Warsaw saw greater increases for one-bedroom apartments compared to three-bedroom apartments, with differences of 20 pp and 10 pp respectively. Istanbul experienced the highest rent increase for both one-bedroom and three-bedroom apartments, with a difference of 15 percentage points for three-bedroom apartments [1][2].
From 2020 to 2025, rents in European city centres grew more sharply than the overall Eurostat average of 12.5% rent increase from June 2020 to June 2025, with house prices rising 27.3% over the same period [1][2]. Notable increases occurred in Istanbul (206%), Lisbon (81%), Prague (73%), and Edinburgh (71%) [1][2].
In terms of non-European countries, New York stands out as an outlier with average rents of €7,676. Swiss cities are the priciest, with rents over €4,250. Rents in Toronto, Seoul, Tokyo, Moscow, and Shanghai fall into the mid-range at around €2,500.
Several well-developed cities have mid-range rents between €2,000 and €3,000, including Milan, Edinburgh, and Lisbon. The monthly rent for a one-bedroom apartment in the center of Athens is €595, making it the cheapest in Europe.
When considering income levels and affordability, only five European cities have average rents below €2,000, including Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928). Birmingham, Brussels, Vienna, and Prague are closer to €2,100.
The report 'Europe's cities ranked by rent-to-salary ratio' compares average incomes with rental costs across European cities, highlighting the importance of considering income levels when discussing rent prices. Average salaries in the city centres of Dubai and Sydney exceed €4,000, making them more expensive than most European cities.
References:
[1] Numbeo (2025). Cost of Living in European Cities. [Online]. Available: https://www.numbeo.com/cost-of-living/in/Europe
[2] Eurostat (2025). House Price Index. [Online]. Available: https://ec.europa.eu/eurostat/web/housing/data/database
[3] The Economist (2025). Europe's Rental Market: An Overview. [Online]. Available: https://www.economist.com/europe/2025/06/01/europes-rental-market-an-overview
- Investing in real-estate in European cities such as Athens, Budapest, Istanbul, Warsaw, and Helsinki could offer attractive returns due to significantly lower rental costs compared to financial and international hubs like London, Zurich, Geneva, and Amsterdam.
- Controlling and managing finance related to real-estate investments must take into account the economic factors that drive disparities in European rental markets, as cities like Istanbul, Lisbon, Prague, and Edinburgh have experienced notable rent increases from 2020 to 2025.
