As rent prices across the block continue to climb, the largest costs in Southern and Eastern Europe have been detected in the last five years. This is a scrutiny of 67 cities and 28 cities around the world, according to a recent Deutsche Bank report.
According to Eurostat, home prices rose 27.3% between the first quarters of 2020 and 2025, while rents rose 12.5% between June 2020 and June 2025. However, the report shows that urban centre rent increases are significantly greater than this average.
So, as of 2025, which European cities have the most expensive rent? Where is the most affordable rent? And which cities have seen the biggest increase since 2020?
Athens is the cheapest, London is the most expensive
In 2025, monthly rents for a three-bedroom flat in the heart of 28 European cities range from 1,080 euros in Athens to 5,088 euros (or £4,278) in London. European cities can be grouped into three categories based on rent levels.
- Rents exceeding 3,000 euros
After London, the most expensive places in Europe are Zurich, Geneva and Amsterdam, all over 3,800 euros. Swiss cities are the most expensive, with rents exceeding 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, driving strong demand for housing.
- Rents range from 2,000 to 3,000 euros
Some well-developed cities have intermediate rents ranging from 2,000 to 3,000 euros. Milan, Edinburgh and Lisbon are at the upper limit of this range.
Madrid, Stockholm, Berlin, Frankfurt and Barcelona are a little more affordable, with average rents of around 2,500 euros.
Birmingham, Brussels, Vienna and Prague are close to 2,100 euros. These cities offer relatively low cost of living compared to the highest levels.
- The rent is less than 2,000 euros
Only European cities with average rents under 2,000 euros. In addition to the lowest Athens, it includes Budapest (1,225 euros), Istanbul (1,614 euros), Warsaw (1,881 euros) and Helsinki (1,928 euros).
These figures show that Western and Northern Europe have the highest rents. A strong economy, high standard of living and housing shortages are key factors in these cities. While there is a mix of rent levels in Southern and Central Europe, Eastern and Southeastern Europe remain the most affordable.
If non-European countries are included in the report, New York stands out as an outlier with an average rent of 7,676 euros ($8,388), while Cairo is the cheapest at just 377 euros.
The average salary in Dubai and Sydney city centres is over 4,000 euros. This makes it more expensive than most European cities. Rents in Toronto, Seoul, Tokyo, Moscow and Shanghai are classified as medium distances at around 2,500 euros.
Rent for a 1-bedroom apartment in the center
One-bedroom residence rentals follow the same pattern primarily as three-bedrooms. However, some cities change their ranking locations. The price ratio also varies.
Still, London (€2,732 or £2,297) is the most expensive in Europe, while Athens (€595) is the cheapest.
Generally, a one-bedroom apartment was about half of a three-bedroom apartment. The share rises to 64% in Oslo and 62% in San Francisco, but falls to 37% in Seoul. As a result, San Francisco surpasses London in one-bedroom rental prices worldwide.
Where rents increase the most
The report shows the US dollar figures, but converted them to Euro for a more fair comparison. Changes may differ when viewed in local currency.
Between 2020 and 2025, monthly rents for three-bedroom apartments in the European city centre increased by 3% in Helsinki and 206% in Istanbul.
Generally, Southern and Eastern Europe experienced the strongest rent increases. Lisbon (81%), Prague (73%) and Edinburgh (71%) followed Istanbul, with each exceeding 70%.
Rents have also risen significantly in Spain. Barcelona is 65% and Madrid is 59%. Athens and Warsaw are two other European cities, increasing by more than 50%.
Rent changes vary depending on the size of your apartment
In a one-bedroom apartment in the city centre, the highest and lowest rent increases in Europe between 2020 and 2025 were still seen in Istanbul (191%) and Helsinki (18%). The increase in Helsinki was higher compared to the increase in three-bedroom flats (3%).
In some cities, rent increases were high for three-bedroom apartments, including Istanbul (over 15 percentage points), Prague (23 pp), and Amsterdam (10 pp). Other cities saw a significant increase in one-bedroom flats, such as Milan (20pp) and Warsaw (10pp).
‘Big cities, bigger housing costs‘It shows how house prices differ significantly across the country. For example, houses in London are 50% higher than the UK average.
Income levels are important when discussing affordable rent prices. ‘European cities are ranked by rent-to-strata ratio‘The article compares the average income with rental costs.