Europe’s Most Expensive Cities to Rent in 2025
The Most Expensive Cities to Rent in Europe in 2025
Finding housing in Europe is becoming an ever greater challenge. Rents are reaching historic highs—especially in major cities where demand far outpaces supply. According to a recent study by an international real estate consultancy, rental prices in ten European cities in 2025 have reached levels that make it difficult even for high‑earning professionals to secure decent accommodation.
London: The “King” of High Rents
The British capital consistently holds the top spot. The average rent for a two‑bedroom apartment in central areas surpasses £3,500 per month. Pressure intensifies due to continuous inflows of foreign investors and limited new construction activity.
Paris: Demand Without Restraint
The City of Light remains among the most expensive rental markets. Scarce housing stock in central districts, high tourism inflows, and conversion of many units into short‑term rentals exacerbate the situation. Rents often exceed €30 per square meter.
Dublin: Economic Boom with Housing Crisis
Ireland attracts major tech firms, driving up the number of skilled workers. Yet housing policy has not kept pace with growth. As a result, rental prices soar, and many newcomers struggle to find housing near their workplaces.
Zurich & Geneva: Swiss Precision in Housing
These two Swiss cities consistently rank among the top. Strong economies, high wages, and currency stability shape a market where rents are inaccessible for most foreign employees.
Oslo & Copenhagen: Scandinavian Standards, Expensive Housing
In Scandinavian capitals, the cost of living is already high, and rents are no exception. Cities are investing in “green” housing and energy‑efficient buildings, which raise values further. Yet even elevated social protections do not fully absorb pressures on the middle class.
Milan: The Rising Italian Real Estate
Italy’s economic and cultural capital is gaining ground. Tourism growth, international events, and infrastructure upgrades boost demand. Central area rents resemble those in London and Paris, while peripheries offer more affordable alternatives.
Munich & Berlin: The German Paradox
Germany has long tried to regulate rents with ceilings and strict rules. However, in cities like Munich—where quality of life is among the highest—rents remain uncontrolled. Berlin, despite regulatory interventions, faces similar pressures from population growth and investment inflows.
Why Rents Are Rising
The increase in rental prices is not random. Key contributing factors include:
- Limited new housing supply due to high construction costs
- Strong demand from foreign workers, students, and investors
- Widespread short‑term rentals reducing supply of long‑term housing
- Neighborhood upgrades (gentrification) displacing local residents
Impacts on Households
In most cities on the list, residents spend between 35% and 50% of their income on rent—exceeding international recommendations for “affordable housing.” This leads to social inequality, pressure on the middle class, and increased cohabitation.
The Future of the Market
Governments are exploring solutions via subsidies, social housing, and limiting short‑term rentals. However, as long as Europe remains an attractive destination for investment and work, pressure on rental prices will be hard to ease. The big question is whether cities can balance growth with social cohesion.