Rental prices for housing in major cities of the European Union continue to show an upward trend, as evidenced by a recent report from Deutsche Bank. In only five European cities, the average cost of renting a three-room apartment in the city center remains below 2,000 euros, highlighting the market’s characteristics and regional differences.
This is reported by Finway
Regional Differences and Growth Trends
Over the past five years, the most significant increase in rental prices has been observed in Southern and Eastern European countries. According to Eurostat data, from the first quarter of 2020 to the first quarter of 2025, housing prices in the EU have risen by 27.3%, while rental prices increased by 12.5% just from June 2020 to June 2025. However, the rise in rental prices in the central areas of cities significantly exceeds the average European figure.
“In 2025, the monthly rent for a three-room apartment in the center of 28 European cities ranges from 1,080 euros in Athens to 5,088 euros (or 4,278 pounds sterling) in London.”
Most Expensive and Cheapest Cities for Renters
London retains its position as the most expensive European city for renting, with an average rent of 5,088 euros for a three-room apartment in the center. Following closely are Zurich, Geneva, and Amsterdam, where rents exceed 3,800 euros, and in the Swiss cities, they are over 4,250 euros. Dublin, Luxembourg, Paris, Copenhagen, and Munich also make the list of cities with the highest rental prices, which is linked to their status as important financial, political, and international centers, along with high demand for housing.
Cities with average rental prices (from 2,000 to 3,000 euros) include Milan, Edinburgh, and Lisbon. Somewhat more affordable are Madrid, Stockholm, Berlin, Frankfurt, and Barcelona, where monthly rent is around 2,500 euros. In Birmingham, Brussels, Vienna, and Prague, the average rental cost is approximately 2,100 euros, making these cities relatively more attractive for renters compared to elite capitals.
The lowest rental prices are recorded in five cities: Athens (1,080 euros), Budapest (1,225 euros), Istanbul (1,614 euros), Warsaw (1,881 euros), and Helsinki (1,928 euros). This indicates that rental prices in Western and Northern Europe are the highest, while in Southern, Central, Eastern, and Southeastern Europe, housing remains more affordable.
Global Trends in the Rental Market
Outside of Europe, New York stands out as the city with the highest rental prices in the world — 7,676 euros (8,388 dollars) per month. The cheapest metropolis remains Cairo, where renting an apartment costs only 377 euros per month. In cities like Dubai and Sydney, the average salary exceeds 4,000 euros, making them more expensive than the European average, while Toronto, Seoul, Tokyo, Moscow, and Shanghai show average prices of around 2,500 euros per month.
These trends illustrate that renting housing in major EU cities remains one of the most serious expenses for residents, and regional differences determine the affordability of housing for various population categories.