Housing continues to be the largest expense for European households, but the cost of renting varies sharply across the continent, according to the latest Eurostat data. The figures highlight a widening gap between Europe’s most expensive and most affordable rental markets, particularly in capital cities where demand continues to outpace supply.
Across 40 European cities spanning EU member states, candidate countries, EFTA nations and the United Kingdom, the average monthly rent for a two-bedroom apartment ranges from €470 in Skopje to €3,350 in Geneva. The data underscores how sharply rental costs diverge even within relatively small geographic regions.
London stands out as the only capital exceeding the €3,000 mark, with tenants paying an average of €3,050 per month. It ranks second overall among the surveyed cities. Other high-cost capitals include Dublin and Stockholm, both averaging €2,650, alongside Oslo at €2,550. Dublin and Stockholm are jointly identified as the most expensive EU capitals for renters.
Housing market pressures are particularly visible in Western and Northern Europe. According to real estate expert Mikk Kalmet of Global Property, strong demand from international workers, students and higher-income residents continues to push prices upward in cities with limited housing supply.
“The biggest reason rents differ so much across Europe is that housing markets are local,” Kalmet said. He added that cities such as Geneva, London and Stockholm attract more residents than available housing stock can accommodate, driving prices higher.
Among the EU’s four largest economies, Paris records the highest average rent at €2,500, followed by Berlin at €1,750, Madrid at €1,700 and Rome at €1,650. Other expensive capitals include Copenhagen, Luxembourg and Reykjavik, each averaging €2,350.
At the more affordable end of the spectrum, Pristina records €520, followed by Skopje at €470 and Ankara at €770. Within the European Union, Sofia and Nicosia are the cheapest capitals, at €900 and €910 respectively. Several Eastern and Central European cities, including Bucharest, Riga, Tallinn and Vilnius, cluster between €900 and €1,200.
Kalmet noted that lower rents in some regions do not necessarily translate into greater affordability, as wages tend to be lower in parallel. “Looking only at rent levels can be misleading without considering incomes,” he said.
Brussels, the EU’s administrative centre, sits near the middle of the ranking at €1,450.
Eurostat attributes rising rents across Europe to multiple factors, including post-pandemic demand shifts, population growth, migration, higher interest rates and increased construction costs. Rising borrowing costs have also made home ownership less accessible, pushing more households into rental markets and further tightening demand.
The data is based on Eurostat’s rent survey for the second half of 2025, using harmonised methodology and exchange rates from July 2025.
