The European real estate market in 2025 shows stark contrasts – while in some cities owning a home is becoming an almost unattainable luxury, in others it remains relatively affordable for the average resident. Find out in which European cities housing has become the most expensive in 2025, and where it can still be purchased at an affordable price

The European real estate market remains one of the most dynamic and complex in the world. Despite economic challenges, inflation and the cost of living crisis, interest in purchasing a home in Europe is growing. But the level of affordability of apartments varies significantly from city to city.

The annual Deloitte European Real Estate Index 2025 showed where buying a home is most affordable, and where it becomes a real financial obstacle.

How was housing affordability calculated?

Deloitte analysts estimated how much average annual gross salary is needed to buy a new 70 m2 apartment. This gave a more standardized picture than a simple comparison of prices per square meter, as local incomes were also taken into account.

At the same time, experts emphasize that affordability is affected not only by property prices, but also by the level of salaries. Therefore, even in cities with high housing costs, it can become more achievable due to rising incomes.

We talked about the European countries where you can buy a home at the lowest prices in 2025 here.

Top 10 most expensive cities in Europe to buy a home

In 2025, Amsterdam topped the list of least affordable cities. Here, it takes 15.4 annual salaries to buy an apartment. Athens (15.3) and Prague (15) are only slightly behind.

The top ten also includes:

- Košice, Slovakia

- Brno, Czech Republic

- Banská Bystrica, Slovakia

- Bratislava, Slovakia

- Ljubljana, Slovenia

- Thessaloniki, Greece

- Budapest, Hungary

The most affordable cities to buy your own home in 2025

At the other end of the scale are cities where you need three times less salary to buy an apartment than in the capital of the Netherlands. The most affordable options in 2025 are:

- Turin, Italy – 4.9 salaries.

- Odense, Denmark – 4.9.

- Manchester, United Kingdom – 5.3.

- Aarhus, Denmark

- Katowice, Poland

- Zagreb, Croatia

- Celje, Slovenia

- Maribor, Slovenia

- Florence, Italy

- Gyor, Hungary

Read about where to invest in real estate in the US here.

Why real estate prices in European cities vary so much: key factors

The European real estate index shows not only “dry numbers”, but also trends that explain the gap between cities:

- Inflation and cost of living. In megacities (Amsterdam, Athens, Prague), high demand for housing is not compensated by rising wages. This pushes prices up.

- Labor market. Where wages are rising (Denmark, Northern Europe), even relatively high apartment prices look more affordable.

- Mortgages and interest rates. Tighter lending conditions in Central and Eastern Europe make housing less affordable for local residents.

- Migration and urbanization. Capitals and cultural centers attract students, foreign workers and tourists, which increases the pressure on the market.

Regional differences

- Central and Eastern Europe (Prague, Budapest, Slovakia) demonstrate a paradox: relatively low incomes combined with high demand make housing less affordable than in Western Europe.

- Scandinavia (Odense, Aarhus) is characterized by high salaries and balanced housing policies, which keep the market within more affordable limits.

- Southern Europe (Italy, Croatia, Slovenia) has local centers where housing remains relatively affordable, although large cities like Athens are experiencing price pressure.

What to expect in 2026

Experts predict that the situation will remain difficult in the coming years:

- Increased mortgage rates in the EU will restrain purchasing power;

- Demand for housing in university and business centers will grow;

- High-income countries in Northern and Western Europe will maintain relative stability in affordability.

However, there may be some leveling of prices in cities where governments are encouraging new housing construction (e.g., Poland or Denmark).

Europe remains a region with huge differences in housing affordability. While buying an apartment in Amsterdam or Athens may seem like an unattainable dream, in Turin or Odense it is a very realistic goal.

For those planning to invest or own their own housing abroad, it is worth looking not only at the price per square meter, but also at the level of income, mortgage conditions and local market dynamics. These factors determine how realistic the dream of owning a home in a particular country is.

If you are planning to invest in housing abroad or are considering moving to another EU country, it is worth consulting with specialists in advance. Migration lawyers will help you understand visa rules, tax nuances and legal aspects of buying real estate so that your investment is safe and profitable.

Photo – Freepik

Recall! Germany is the most economically developed country in the EU, which can boast a stable real estate market. At the same time, only 40% of Germans own their own homes. Although mortgages in the country are quite affordable, long-term real estate leases prevail here. Read here about the procedure for buying real estate in Germany for expats, the cost and features of the legislative framework.

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