How Much Does an Apartment Cost in Europe? Rent, Buy, and Everything in Between

Apartment prices across Europe span an enormous range — from under €500 a month in Budapest to well over €5,000 in central London. Whether you’re planning a move, scouting an investment, or simply trying to understand what your budget gets you on the continent, knowing the real numbers makes all the difference.

This guide breaks down what you can expect to pay for apartments across major European cities — by size, by ownership type, by neighborhood, and by your status as a foreign buyer. You’ll also find practical tips for navigating the search process once you’re ready to commit.

Pro Tip: Prices in this guide are primarily sourced from Q4 2024 and Q4 2025 market data. Always verify current listings on local property portals before making financial decisions.

Average Rent in Europe by Apartment Size

Rental costs vary dramatically depending on where in Europe you’re looking. Among the cities tracked by major rental indices, Amsterdam, Rome, and Paris consistently record the highest apartment rents, with average monthly prices of €2,300, €1,990, and €1,908 respectively. At the other end of the scale, the lowest apartment rents are observed in Budapest and Athens, both at around €900 per month, followed by Turin at €1,200.

Studio apartments tell a similar story. Renting a furnished studio in some of Europe’s leading cities can cost anywhere between €500 monthly in Budapest and €2,000 in Amsterdam. For those looking at mid-range markets, average studio rents stand at €650 in Budapest, €680 in Turin, and €760 in Athens.

In 2025, the monthly rent for a three-bedroom flat in the centre of 28 European cities ranges from €1,080 in Athens to €5,088 in London, and in general, one-bedroom apartments cost about half as much as three-bedroom ones.

It’s worth noting that European rental markets showed signs of cooling towards the end of 2025, with average rents for furnished rooms falling by 3.1% year on year, furnished apartment rents declining by 1.3%, and studios recording the steepest decrease at 4.4%. That’s relatively good news if you’re planning to rent in the near future.

Key Insight: Rent in Eastern European capitals like Budapest and Athens can be 60–70% cheaper than in Western hubs like Amsterdam or Paris — a major factor if you’re weighing relocation options.

Average Apartment Purchase Price in Europe

If you’re considering buying rather than renting, purchase prices are measured in euros per square meter (€/m²) and vary just as widely as rents. Geneva, Switzerland, was the most expensive city to buy an apartment in Europe in Q1 2024, with a square meter price of nearly €15,650 — about €2,000 higher than the second-ranked city, Zurich.

In Western Europe’s major capitals, purchase prices remain steep. Central Lisbon averages €6,000–€8,000/m² for high-end apartments, with the overall city centre price sitting at approximately €6,173/m². In Porto, city centre apartments command roughly €3,990/m², while areas outside the centre cost around €3,035/m².

Looking at the trend of house prices in the EU between 2010 and 2024, there was an upward trend from 2013 to 2022, with a slight decline of 0.3% in 2023, followed by a 3% increase in 2024 — totalling a 53% increase over the full period. The largest increases were observed in Hungary (+231%), Estonia (+228%), and Lithuania (+179%).

Important Note: Purchase prices above are asking prices. Transaction costs — including notary fees, transfer taxes, and agency commissions — can add 7–15% on top of the listed price depending on the country.

Cost of Renting vs. Buying in Europe

The rent vs. buy decision in Europe is rarely straightforward. It depends on how long you plan to stay, local mortgage rates, and how quickly prices are appreciating in your chosen city. Understanding the financial trade-offs is essential before committing either way. You can also explore different types of apartments to understand which format suits your lifestyle and budget best.

On average in 2024, EU households spent 19% of their disposable income on housing. That figure climbs significantly in high-cost cities. The housing cost overburden rate — the share of the population spending more than 40% of disposable income on housing — stood at nearly 10% of urban residents across the EU in 2024.

On the mortgage side, average mortgage interest rates across Europe in 2023 were all under five percent, except in Czechia, Romania, Hungary, and Poland — and a difference of just one percent can mean thousands of euros in additional interest over a mortgage’s lifetime. Mortgage interest rates tend to be lower in Nordic countries due to the financial stability and reliability of borrowers there.

The house price-to-rent ratio — calculated as nominal house prices divided by a rent price index — shows how the gap between buying and renting has widened since 2015. As of 2021, Finland, Italy, and Belgium had the lowest ratios, meaning buying was most affordable there compared to renting.

• Renting makes more sense if you plan to stay fewer than 3–5 years, are in a high-price-to-rent city like Amsterdam or Zurich, or want flexibility.
• Buying makes more sense if you’re settling long-term, have access to low-rate financing, or are in a high-yield market like Riga or parts of Italy.
• Consider transaction costs: In France, for example, fees for resale properties amount to 7–8% of the purchase price, with a registration fee of 5.8% of the same amount.

Pro Tip: Use the “break-even horizon” calculation — divide total purchase costs by monthly rent savings. If you plan to stay longer than that break-even point, buying typically wins financially.

Cheapest and Most Expensive Neighborhoods in Europe

Within any given European city, neighborhood choice can swing your rent or purchase price by 50% or more. Knowing which areas are budget-friendly — and which command a premium — helps you set realistic expectations. For more on apartment living in urban environments, check out these urban living essentials every big city apartment must have.

Most Expensive Cities and Districts: After London, the most expensive places to rent in Europe are Zurich, Geneva, and Amsterdam, all above €3,800 for a three-bedroom unit. Swiss cities are the priciest overall, with rents over €4,250. Dublin, Luxembourg, Paris, Copenhagen, and Munich also have high rents, all above €3,000.

In 2023, the most expensive residential rental market per square meter in Europe was inner London at approximately €33.8/m², followed by Dublin and Paris at €31.5 and €31.3/m² respectively.

Most Affordable Cities and Districts: In cities like Budapest or Sofia, monthly rent for a one-bedroom apartment in the city centre can be as low as €400–€500, compared to over €1,500 in Paris or Amsterdam. Cities such as Sofia, Bucharest, Budapest, Porto, and Krakow offer options for under €800 per month.

Within cities, the price gap between central and peripheral neighborhoods is significant:

• Berlin: Neighborhoods range from €3,500 to €15,000/m² for purchase prices, and the city has seen rental payment growth of 36% over five years.
• Lisbon: High-end central areas like Chiado and Príncipe Real can command €8,000–€12,000/m², while the city centre overall averages around €6,173/m².
• Germany (affordable end): The most affordable housing can be found in Chemnitz, where a one-room apartment costs €450–€650/month.
• Croatia: One-bedroom apartments in major cities like Zagreb or Split can be rented for as low as €450–€600 per month, with even lower rates in rural or inland areas.

Common Mistake: Focusing only on city-level averages. A neighborhood one metro stop outside the historic centre can cost 30–40% less while still offering excellent access to city amenities.

What Affects Apartment Prices in Europe

European apartment prices are shaped by a complex mix of structural, economic, and policy-driven forces. Understanding these factors helps you anticipate where prices may move — and why some cities are so much more expensive than others.

Supply and Demand Imbalances: Europe is in the midst of a housing shortage crisis, pushing up renting costs dramatically in many cities. Simultaneously, new policies from the COVID work-from-home era mean more “mobile talent” — young skilled workers — are moving abroad and driving up prices. In Germany specifically, the country needs to build 320,000 apartments per year to meet demand by 2030 but currently builds only around 251,900, creating an annual deficit of about 68,100 units — a gap expected to reach 120,000 by 2025.

Homeownership Culture: In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing, contributing to increased demand and higher living costs. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90%, which may help keep rental prices lower in those regions.

Economic and Professional Concentration: The drive for high-paid professionals to be located centrally in prime locations, combined with low levels of available space, high land, and construction costs, all help keep rental prices rising.

Construction Cost Inflation: Between 2010 and 2024, construction producer prices in the EU rose by 56%, with the largest rises observed in Hungary (172%), Bulgaria (145%), and Romania (137%).

Rent Control and Local Policy: Some cities use rent controls that create a two-tier market. In Berlin, for example, the average rental cost is €15.82/m², but on existing contracts with strict rent control, tenants pay only €7.67/m² — compared to €16.35/m² on new contracts.

Short-Term Rental Platforms: Amsterdam recorded rental increases of 15% compared to 2023, partly due to demand from expats and restrictions on short-term rentals — showing that Airbnb-style regulations can cut both ways.

How Europe Compares to Other Major Cities

Europe’s rental landscape sits in an interesting position globally. While Western European capitals like London and Zurich rank among the world’s most expensive cities for housing, much of Central and Eastern Europe remains highly affordable by international standards.

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. Southern and Eastern Europe experienced the strongest rent increases, with Lisbon (81%), Prague (73%), and Edinburgh (71%) following Istanbul.

Rents also rose significantly in Spain — by 65% in Barcelona and 59% in Madrid — while Athens and Warsaw each saw just over 50% increases.

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. However, city-centre rent increases have been significantly steeper than these national averages suggest. If you’re curious how European apartment costs compare to cities in other parts of the world, see our breakdown of how much an apartment costs in Kathmandu for an interesting contrast.

Key Insight: Helsinki stands out as one of the most stable rental markets in Europe, with only a 3% increase since 2020 — making it a relatively predictable market for long-term planning despite its high absolute price level.

Can Foreigners Buy an Apartment in Europe?

The good news for international buyers is that most European countries are relatively open to foreign property ownership — though the rules, taxes, and practical requirements vary significantly by country. In 2024, 68% of the EU population owned their home, while 32% lived in rented housing — and foreign buyers contribute meaningfully to that ownership pool in many markets.

Here’s how the rules break down by country:

• Ireland: Ireland imposes no restrictions on foreign buyers. Properties can be purchased either as an individual or through a company structure.
• France: Over 10% of property purchases in Paris and its suburbs in 2023 were made by foreigners. Real estate is acquired not only for living but also for rental or investment purposes, as the French market remains stable regardless of economic conditions.
• Portugal: Despite the phase-out of the real estate route under the Golden Visa, property prices continue to rise, driven by limited supply and foreign demand. Portugal continues to attract digital nomads, retirees, and global investors who see real estate ownership as a gateway to long-term residency.
• Italy: Italy has tax incentives for new residents, which can make a difference for foreigners moving in.
• Malta: Investors from all over the world buy or rent real estate in Malta in order to obtain a residence permit or citizenship of exceptional merit based on direct investment.

When it comes to transaction costs, budget carefully. In Malta, for instance, the buyer pays up to 16% of the property value in taxes and fees, including stamp duty of up to 7%, a real estate purchase tax of 5%, and notary fees of 1–2.5%.

For non-EU buyers in particular, working with a local notary and real estate lawyer is strongly recommended. Requirements for foreigners are often stricter, as they need to prove identity, residency status, and financial capabilities. Also factor in ongoing costs — maintenance of the building and territory typically runs €100–€300 per month, plus utilities of €150–€350 depending on the season and property size.

Important Note: EU and non-EU buyers face different rules in some countries. Always consult a local property lawyer before signing any purchase agreement — rules around residency, financing, and taxes can change.

Tips for Finding an Apartment in Europe

Whether you’re renting or buying, finding the right apartment in a European city requires preparation, local knowledge, and a clear budget strategy. The market moves fast in high-demand cities, and being ready to act is half the battle. It also helps to cut costs elsewhere in your budget so you have more flexibility for housing.

1. Research the market before you arrive. Use platforms like HousingAnywhere , Numbeo , and local portals (Idealista in Spain, SeLoger in France, Immobilienscout24 in Germany) to benchmark prices by neighborhood before you start viewing.

2. Understand what “furnished” means in that market. Approximately 97% of listed properties on major platforms are fully furnished and 60% include bills in their rent — but definitions vary widely. Always confirm what’s included before comparing prices.

3. Watch out for scams. Do not make advance payments without contractual guarantees, and be wary of prices that are too low for the area you’re searching. Check reviews of the owner or platform before transferring any money.

4. Consider timing your search. Europe is experiencing an acute housing shortage, so rental prices are reaching record highs and finding a vacant apartment with good conditions is a real challenge. Searching outside peak seasons (September for student cities, spring for expat hubs) can give you more options and negotiating power.

5. Look beyond the city centre. The cities of Northern Europe remain fascinating but expensive, while the East and the South still offer savings opportunities and quality of life. Within any city, neighborhoods just one or two metro stops from the centre can offer significant savings. You can also explore apartment-friendly lifestyle choices that make smaller spaces feel more livable.

6. For buyers: get pre-approved financing early. Factors that influence mortgage rates include inflation, economic growth, monetary policies, the bond market, and the overall conditions of the housing market — all of which shift frequently. Locking in your financing terms before you start viewing gives you a real competitive edge.

7. Digital nomads and remote workers should prioritize infrastructure. Remote working has revolutionized the rental market, with more professionals choosing cities where it’s possible to live well on an average budget. Cities like Lisbon, Valencia, Budapest, and Tallinn now actively court this demographic with visa programs and competitive costs.

Pro Tip: If you’re moving to a new city, consider renting short-term for 1–3 months before signing a long-term lease. This gives you time to discover which neighborhoods actually suit your lifestyle — and avoid costly mistakes.

Understanding apartment costs across Europe isn’t just about knowing the average rent in a given city — it’s about reading the full picture: size, location, ownership type, and market trajectory. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centres. Armed with real data and a clear strategy, you’re far better positioned to find a place that fits both your lifestyle and your financial goals — whether that’s a studio in Budapest or a two-bedroom in Lisbon.