House prices rose by 27.3 percent between the first quarter of 2020 and 2025, while rents rose by 12.5 percent from June 2020 to June 2025. But this report shows that rent increases in city centers were significantly higher than this average. So, as of 2025, which European cities have the most expensive rents?
While rents across the bloc continue to rise, the biggest cost increases over the past five years have been in southern and eastern Europe. That’s according to a recent report by Deutsche Bank, which analyzed 67 cities worldwide and 28 in Europe. According to Eurostat, house prices rose by 27.3 percent between the first quarter of 2020 and 2025, while rents rose by 12.5 percent from June 2020 to June 2025. But this report shows that rent increases in city centers were significantly higher than this average. So, as of 2025, which European cities have the most expensive rents? Where are rents the most affordable? And which cities saw the biggest increases since 2020?
ATHENS IS CHEAPER, LONDON IS MOST EXPENSIVE
In 2025, the monthly rent for a three-bedroom apartment in the center of 28 European cities ranges from €1080 in Athens to €5088 (or £4278) in London. European cities can be grouped into three categories based on rent levels:
RENT OVER 3000 EUROS
After London, the most expensive places to rent in Europe are Zurich, Geneva and Amsterdam, all over 3800 euros. Swiss cities are the most expensive, with rents over 4,250 euros. Dublin, Luxembourg, Paris, Copenhagen and Munich also have high rents, all over 3,000 euros. These cities are major financial, political or international centres, leading to strong demand for accommodation. Rents range from 2000 to 3000 euros.
Several developed cities have average rents between 2000 and 3000 euros. Milan, Edinburgh and Lisbon are at the higher end of this range. Madrid, Stockholm, Berlin, Frankfurt and Barcelona are slightly more affordable, with average rents around 2500 euros. Birmingham, Brussels, Vienna and Prague are closer to 2100 euros. These cities offer a relatively lower cost of living compared to the higher end.
RENT UNDER 2000 EUROS
Only five European cities have average rents below €2000. In addition to Athens, the lowest, these include Budapest (€1225), Istanbul (€1614), Warsaw (€1881) and Helsinki (€1928). This data shows that Western and Northern Europe have the highest rents. Strong economies, a high standard of living and a lack of housing 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 the report includes non-European countries, New York stands out with an average rent of €7676 ($8388), while Cairo is the cheapest at just €377. Average salaries in the city centers of Dubai and Sydney exceed €4000. This makes them more expensive than most European cities. Rents in Toronto, Seoul, Tokyo, Moscow and Shanghai fall into the mid-range of around €2500.
ONE-ROOM APARTMENT FOR RENT IN THE CENTER
Rent for a one-bedroom apartment generally follows the same pattern as for a three-bedroom apartment. However, some cities change places in the rankings. The price ratios are also different. However, London (€2732 or £2297) remains the most expensive in Europe, while Athens (€595) is the cheapest. Overall, one-bedroom apartments cost about half the price of three-bedroom apartments. This percentage rises to 64 percent in Oslo and 62 percent in San Francisco, but drops to 37 percent in Seoul. This is why San Francisco surpasses London in rent prices for one-bedroom apartments globally.
WHERE RENTS HAVE INCREASED MOST
The report shows figures in US dollars, but we have converted them to euros for a fairer comparison. Changes may differ when viewed in local currencies. Between 2020 and 2025, the monthly rent for a three-bedroom apartment in city centres across Europe increased between 3 per cent in Helsinki and 206 per cent in Istanbul. Overall, Southern and Eastern Europe saw the strongest rent increases. Lisbon (81 per cent), Prague (73 per cent) and Edinburgh (71 per cent) follow Istanbul, each with an increase of over 70 per cent. Rents also rose significantly in Spain – by 65 per cent in Barcelona and 59 per cent in Madrid. Athens and Warsaw were the other two European cities to see increases of just over 50 per cent.
RENT CHANGES VARY DEPENDING ON THE SIZE OF THE APARTMENT
For a one-bedroom apartment in the city centre, the highest and lowest rent increases across Europe between 2020 and 2025 were still recorded in Istanbul (191 percent) and Helsinki (18 percent). The increase in Helsinki was higher compared to that for a three-bedroom apartment (3 percent).
In some cities, rent increases were highest for three-bedroom apartments – such as Istanbul (15 percentage points higher), Prague (23 percentage points) and Amsterdam (10 percentage points). Other cities saw larger increases for one-bedroom apartments, including Milan (20 percentage points) and Warsaw (10 percentage points).
“Big Cities, Higher Housing Costs” shows how housing prices can vary significantly within a country. For example, housing in London is 50 percent more expensive than the UK average.