Most Affordable and Most Expensive Countries in Europe: Changes in Housing Prices

Published:
July 18, 2025
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The European real estate market has gone through a roller coaster of predictability over the years. The recovery from the financial crisis of 2008–2012 was more than steady. The sector got a huge setback in 2020 when the economic growth was pulled back by the Covid-19 pandemic. A sharp rebound in 2021 has been noted, which was too sharp for many people’s comfort. The year 2022 has seen its big spike in housing prices, to be corrected notably in 2023. As 2024 unfolds, market trends have already shifted towards being very fragmented, and regional differences in property for sale prices and rental rates have never been more pronounced.

A recent report by Deloitte looked at the real estate data of 24 European countries and 69 major cities, giving a closer look at changes in affordability and investment landscapes on the continent.

Europe’s Most Expensive Markets

Topping the list of new housing prices is Israel, which, while outside the geographical periphery of Europe, has an average rate of €5,439 per square meter. In second and third place came Austria at €4,920 and Germany at €4,700. High pricing compounded by strong demand and stable economies keeps prices quite high in these countries.

Paris leads city-level statistics with new prices at an average of €14,900 per square meter, followed by Tel Aviv (Israel) at €13,886; once the front-runner, was the city of Munich with €10,900.

Powerful high price centers, however, are also generated in the case of other important towns, like London (€8,018), Amsterdam (€7,850), and Frankfurt (€7,700), revealing the pressure of extremely irritating supply-side constraints and continuous buyer demand.

And similar is the pattern replicated for rental markets. Inner London leads everywhere with rental rates per square meter at €33.8, followed by Dublin at €31.5 and Paris at €31.3. High inflows of tenants and backers into these cities continue, whether the economy is in a state of turbulence or calm.

Affordable Alternatives

Not every country in Europe demands premium prices. Bosnia and Herzegovina offers the continent’s most affordable new housing, averaging just €1,315 per square meter. Greece (€1,463) and Romania (€1,504) also remain accessible, making them attractive options for first-time buyers and value-focused investors.

Among cities, Patras in Greece offers the lowest rental prices at €6.3 per square meter, followed by Burgas (Bulgaria) at €6.9 and Turin (Italy) at €7.3. However, affordability doesn’t always mean stability—Bulgaria, for example, is undergoing rapid market shifts. Rent in Burgas surged by an eye-popping 125.8%, and in Varna by 66.8%, largely due to Bulgaria’s deeper integration into the EU and its anticipated adoption of the euro.

Trends to Watch

Property prices across Europe continued to rise in 2023 but at an uneven pace. Hungary (+13.3%), Poland (+12.2 %), and Portugal (+11.5 %) marked the highest dynamic growth. This means that the markets in Central and South Europe are surely becoming more attractive and competitive.

However, this was not the case in every country. The most substantial decrease in house prices was felt in Italy by 10.7%. It can result from an oversupply of houses in the market, or the decline in demand at the local level. A similar decrease was also noted in Israel, with prices falling by 4.6%. This is a very rare event after so many years of continuous rise.

Rents were changing in some European countries. The highest growth in rents was noted in cities like Manchester (+51.4%), Porto (+35.6%), and Lisbon (+24.8%). Huge growths that stem, apparently, from demographic changes, local economies, and housing policies.

On the other hand, rents have fallen in cities like Lyon, Oslo, and Trondheim.

Looking ahead, Deloitte expects that most European nations will see further price growth by the end of 2024. One exception might be France, where prices could fall slightly. Rent prices are also likely to keep rising in many places, though markets in Austria, Bulgaria, Croatia, Denmark, Poland, Romania, Serbia, and the UK may stay more stable.

Conclusion

Today, Europe’s real estate sector is often seen as a hot spot with hidden gems. Demand is high and the big cities with sound economies are continuously pushing prices up. The new regions in the Balkans and southeastern Europe are showing much potential for anyone eyeing an entry option and long-term growth.

The digitalization and sustainability, together with the new living preferences post-pandemic, have set the pace for life and work today. Both buyers and investors have started looking beyond the traditional metrics of real estate. The new frontier for European real estate is likely to be less about square meters and more about smart decisions, lifestyle changes, and strategic timing.

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