As rental prices surge across Europe, immigrants planning to relocate must now factor in housing costs that vary dramatically by city. A recent Deutsche Bank report covering 67 global cities, including 28 in Europe, highlights sharp rent inflation since 2020 and widening disparities in affordability.
In 2025, London tops the list with average monthly rent for a three-bedroom apartment at €5,088, followed by Zurich, Geneva, and Amsterdam, each exceeding €3,800. Other high-cost cities include Dublin, Paris, Munich, Luxembourg, and Copenhagen, all above €3,000. On the opposite end, Athens remains the most affordable at €1,080, followed by Budapest (€1,225), Istanbul (€1,614), and Warsaw (€1,881).
Mid-range cities like Milan, Edinburgh, Lisbon, Madrid, Stockholm, Berlin, and Frankfurt offer rents between €2,000 and €3,000, balancing infrastructure and cost. Slightly more affordable options include Prague, Vienna, Brussels, and Birmingham, hovering around €2,100.
For one-bedroom units, London remains the priciest at €2,732, while Athens offers the lowest at €595. In cities like Oslo and San Francisco, one-bedrooms cost over 60% of a three-bedroom, reflecting high demand and limited stock.
Rent-to-income ratios vary widely. Cities like Dubai and Sydney offer salaries above €4,000, making high rents manageable. But in places like London, where rent is 50% higher than the UK average, wages may not offset costs—especially for entry-level professionals.
From 2020 to 2025, Istanbul saw a 206% rent increase, the highest in Europe. Other sharp hikes include Lisbon (81%), Prague (73%), Edinburgh (71%), Barcelona (65%), and Madrid (59%). Even traditionally affordable cities like Athens and Warsaw recorded increases above 50%.
The takeaway for immigrants: plan, budget, and compare. Southern and Eastern Europe are no longer guaranteed affordable, and rent inflation is outpacing income growth in many regions. Understanding local housing markets and salary prospects is essential before making the move.
