Where in Europe is the cheapest place to buy and rent housing, and where is the most expensive
5 September 10:56
The European real estate market is actively adjusting to new economic realities after 2022. According to the latest Deloitte Real Estate Index, which covers 28 European countries, as well as Turkey and Israel, house prices continue to rise in most regions, although the difference between countries remains significant, "Komersant Ukrainian" reports
General trends
High interest rates, rising rents and a slowdown in new housing construction are forcing households and developers to be more cautious. Nevertheless, demand for housing remains steadily high, especially in cities with rapid population growth.
“Demand exceeds supply, especially in large cities and economic centers, which is driving up prices for new and used apartments,” said Miroslav Linghart, Deloitte’s lead financial advisory partner.
Affordable housing
The most affordable new housing in Europe in 2025 is offered by Denmark, in particular the city of Odense, where an average of 4.9 times the annual income is required to buy a 70 m² apartment.
The same figures are observed in Turin, Italy.
Manchester in the UK ranks third with 5.3. The high affordability is due not only to moderate real estate prices, but also to stable incomes and the availability of financing.
The least affordable capitals
Among the capitals, Amsterdam topped the ranking of unaffordable cities: to buy an average apartment, you need to save 15.4 times your annual income.
This is followed by Athens (15.3) and Prague (15.0). Košice in Slovakia ranked fourth (14.2).
The unaffordability of housing stimulates the growth of the rental market, which this year demonstrates a rapid rise in prices in both large and regional cities. However, developers are mainly focused on building apartments for sale.
“Demand for rentals is growing, but investors are still investing in housing for sale,” said Petr Gana, director of real estate at Deloitte.
Mortgage markets
Mortgage interest rates remain the highest in Hungary (9.35%), Poland (7.67%) and Romania (6.89%). The Czech Republic has slightly improved its rate at 5.07%, but it is still among the highest.
Instead, the lowest rates are observed in Bulgaria (2.83%), Croatia (2.86%), and Turkey (3.01%). Belgium, Luxembourg, Spain, and France are below 3.5%. The European average is 4.36%, which demonstrates a gradual easing of monetary policy.
The most expensive housing
Among the countries, Luxembourg became the most expensive country to buy new housing – 8,760 euros per square meter.
The most expensive city is Tel Aviv (Israel), where a square meter of new housing costs an average of 13,970 euros.
The rise in prices for new apartments
The fastest rise in housing prices was in Krakow (28.1%), Jerusalem (25.2%) and the Albanian cities of Tirana and Vlora (25.0% each).
Significant growth was also recorded in regional cities of Central and Eastern Europe, such as Lodz and Wroclaw (over 21%).
Conclusion
The European real estate market remains contrasting: while Western and Northern Europe is showing stabilization, Central and South-Eastern Europe is experiencing strong price growth. Turkey is still the most affordable destination for both buying and renting, while Luxembourg and Tel Aviv are the undisputed leaders in terms of cost.
