Key facts
- London is the most expensive capital city for rent in Europe, with average rents of €3,050 for a two-bedroom flat.
- Geneva is the most expensive city overall at €3,350 for a two-bedroom flat.
- Dublin and Stockholm are the most expensive EU capitals, with average rents of €2,650.
- Skopje is the most affordable city, with average rents of €470 for a two-bedroom flat.
- Sofia and Nicosia are the cheapest EU capitals for rent, at €900 and €910 respectively.
- Housing accounts for 23.6% of household expenditure in the EU, including utilities.
Housing represents the largest portion of household spending across the European Union, accounting for nearly a quarter of expenditure when utilities are included. However, rental costs vary dramatically between European capital cities, according to the latest data from Eurostat.
The survey, which covered 40 cities in 38 countries, found that the average monthly rent for a two-bedroom flat ranged from €470 in Skopje to €3,350 in Geneva.
London emerged as the most expensive capital city, with average rents for a two-bedroom flat at €3,050, making it the second most expensive city overall. Dublin and Stockholm tied as the most expensive EU capitals, both averaging €2,650 per month for a two-bedroom flat, followed closely by Oslo at €2,550.
Paris, the largest economy within the EU's 'Big Four', has an average rent of €2,500. Other expensive cities include Copenhagen and Luxembourg, both at €2,350. In contrast, Skopje in North Macedonia is the most affordable city, with rents at €470, followed by Pristina at €520 and Ankara at €770.
Within the EU, Sofia and Nicosia are the cheapest capitals, with average rents of €900 and €910 respectively. Brussels, the EU's capital, is positioned mid-table with an average rent of €1,450.
Real estate experts attribute the significant rent variations to local housing market dynamics, with strong demand from workers, students, and newcomers in cities like Geneva, London, Dublin, and Stockholm, coupled with insufficient housing supply. Income levels also play a role, as higher salaries in Western and Northern Europe can support higher rents, though lower rents in Central and Eastern Europe may not necessarily indicate greater affordability due to lower local wages.
Recent rent increases across Europe are attributed to a combination of factors including post-pandemic urban demand, population growth, migration, rising interest rates making homeownership more difficult, and elevated construction costs. This has led to supply struggling to meet demand in many major cities.