Planning to move to Europe? Cost-of-living high in these cities as rent rises; Check full list

Soaring rental costs across Europe are reshaping how immigrants should evaluate potential destinations. A recent Deutsche Bank report spanning 67 cities globally, 28 of them in Europe, has spotlighted stark regional disparities in rent levels and inflation since 2020, Euro News reported.

The findings underscore a crucial message for prospective migrants: factor in rent-to-income ratios before choosing your European city of residence.

London the priciest; Athens remains the cheapest

In 2025, the average rent for a centrally located three-bedroom apartment ranged from €1,080 in Athens to €5,088 in London. Zurich, Geneva, and Amsterdam also featured among the most expensive cities, all topping €3,800 per month. Paris, Munich, Dublin, Luxembourg, and Copenhagen trailed just behind, each averaging over €3,000.

At the more affordable end, Budapest (€1,225), Istanbul (€1,614), Warsaw (€1,881), and Helsinki (€1,928) provide budget-friendlier options. Athens remains the most affordable European capital.

Mid-tier cities offer a better rent-income balance

Cities like Milan, Lisbon, Madrid, Berlin, and Stockholm offer a mid-range rental environment, typically between €2,000–€3,000 for a three-bedroom flat. Others like Prague, Vienna, Brussels, and Birmingham hover around €2,100.

These cities may present a balanced mix of infrastructure, employment opportunities, and cost of living, suitable for skilled migrants and remote workers seeking urban life without London-level prices.

One-bedroom trends: small doesn’t always mean cheap

One-bedroom apartments reflect a similar ranking. London again tops the list at €2,732, while Athens stays lowest at €595. Interestingly, in high-demand cities like Oslo and San Francisco, a one-bedroom costs more than 60% of the price of a three-bedroom, signalling pressure on compact living spaces.

Rent growth since 2020 sharpest in South and East Europe

Istanbul recorded the steepest rent increase over five years, 206% between 2020 and 2025. Lisbon (81%), Prague (73%), and Edinburgh (71%) followed close behind. Other cities with notable spikes include Barcelona (65%), Madrid (59%), Athens, and Warsaw, each over 50%.

While Helsinki saw just a 3% rise, its base rent remains high, keeping affordability in check.

Rent must be weighed against salaries

According to Euro News, while cities like Dubai and Sydney offer salaries above €4,000, some European hubs combine high rent with lower average income. In London, rents are 50% higher than the UK average, putting a squeeze on newcomers, freelancers, or those without established employment.