Rent Prices in Europe's City Centers and Their Changes Since 2020

Overview of Rent Trends in European Cities

As rent prices across the European bloc continue to rise, a significant increase has been observed in Southern and Eastern Europe over the past five years. A recent analysis by a financial institution examined 67 cities globally and 28 in Europe, revealing that the most substantial increases occurred in city centers, surpassing average figures.

According to data from 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, this report highlights that the growth in city center rents was notably higher than the overall average.

Which European Cities Have the Highest and Lowest Rents?

In 2025, the monthly rent for a three-bedroom flat in the center of 28 European cities ranged from €1,080 in Athens to €5,088 in London. European cities can be categorized into three groups based on their rental costs:

Rents Above €3,000

London remains the most expensive city for renting a three-bedroom flat, followed by Zurich, Geneva, and Amsterdam, all exceeding €3,800. Swiss cities are the priciest, with rents above €4,250. Other high-cost cities include Dublin, Luxembourg, Paris, Copenhagen, and Munich, all with rents above €3,000. These cities are often major financial or political hubs, contributing to strong housing demand.

Rents Between €2,000 and €3,000

Several well-developed cities fall within this range. Milan, Edinburgh, and Lisbon are at the higher end of this bracket. Madrid, Stockholm, Berlin, Frankfurt, and Barcelona have average rents around €2,500. Birmingham, Brussels, Vienna, and Prague are more affordable, with average rents closer to €2,100.

Rents Below €2,000

Only five European cities have average rents below €2,000. In addition to Athens, these include Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928). These cities generally offer lower living costs compared to the top-tier cities.

Global Comparisons and Regional Insights

When non-European cities are included in the analysis, New York stands out as an outlier with average rents of €7,676, while Cairo is the cheapest at just €377. Average salaries in Dubai and Sydney exceed €4,000, making them more expensive than most European cities. Rents in Toronto, Seoul, Tokyo, Moscow, and Shanghai fall into the mid-range, around €2,500.

One-Bedroom vs. Three-Bedroom Rents

Rents for one-bedroom apartments follow a similar pattern to those for three-bedroom units but show some variations in rankings. London remains the most expensive in Europe, with a one-bedroom flat costing €2,732, while Athens is the cheapest at €595. On average, one-bedroom apartments cost about half as much as three-bedroom ones. This ratio varies significantly, reaching 64% in Oslo and 62% in San Francisco, while dropping to 37% in Seoul. As a result, San Francisco surpasses London in one-bedroom rent prices globally.

Largest Rent Increases Since 2020

Between 2020 and 2025, the monthly rent for a three-bedroom apartment in city centers 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%) seeing rises of over 70%. Spain also saw significant increases, with Barcelona rising by 65% and Madrid by 59%. Athens and Warsaw had increases of just over 50%.

Rent Changes by Apartment Size

For one-bedroom apartments, the highest and lowest rent increases were seen in Istanbul (191%) and Helsinki (18%). The increase in Helsinki was higher compared to that for a three-bedroom flat (3%). In some cities, such as Istanbul, Prague, and Amsterdam, the rent increase was higher for three-bedroom apartments. Conversely, cities like Milan and Warsaw saw greater increases for one-bedroom flats.

Housing Cost Variations Within Countries

The report highlights how housing costs can vary significantly within a country. For example, housing in London is 50% more expensive than the UK average. Income levels play a crucial role in determining rent affordability, as explored in another article comparing average incomes with rental costs.