Real estate prices in European capitals vary significantly: in some cities, buying a home has long been a privilege for very wealthy buyers, while in others the market remains relatively affordable. A new study has shown where in Europe today it is most expensive to buy an apartment or house. Learn more about the ranking of the most expensive European capitals for buying a home

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For many people, buying a home in a European capital remains an important indicator of financial stability, investment attractiveness of a city, and quality of life. However, in 2026, the difference between real estate markets in Europe became even more pronounced. While in some capitals the average cost of housing is close to a million euros, in others it is possible to buy an apartment several times cheaper.

According to a study by Rational FX, Luxembourg, Copenhagen and Bern are among the three most expensive European capitals for buying a home, while Skopje is the most affordable city in the ranking. In this article, we examine where housing is most expensive in Europe, which capitals remain more affordable, and the factors underlying these price differences.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

Are you planning to buy real estate abroad? Before concluding a deal, it is important to consider not only the price per square meter, but also tax liabilities, restrictions for foreigners, title checks, and additional costs. Visit World's real estate lawyers will help you analyze the property, assess legal risks, and accompany you at all stages of the transaction: from the initial consultation to the signing of the contract. Get professional support and confidence in every step.

Which European capitals have the highest housing prices?

According to a study by the Rational FX analytical platform, Luxembourg will become the most expensive European capital for buying a home in 2026. The average cost of housing here exceeds 960 thousand euros, and the price per square meter is more than 11 thousand euros.

Experts explain such high prices by a combination of several factors. The country has a limited supply of housing due to a shortage of land for development, as well as a consistently high demand due to the influx of international professionals and the development of the financial sector. In addition, Luxembourg is one of the European leaders in terms of salaries: the average annual salary for a full-time employee is almost 83 thousand euros, which partially compensates for the high real estate costs.

It is also among the ten most expensive European capitals for buying a home:

- Copenhagen, Denmark - the average cost of housing is about 916,333 euros

- Bern, Switzerland - approximately 852,976 euros

- London, UK - about 794,333 euros

- Paris, France - approximately 727,000 euros

- Reykjavik, Iceland - about 615 667 euros

- Lisbon, Portugal - approximately 576,667 euros

- Berlin, Germany - approximately 569,333 euros

- Amsterdam, Netherlands - approximately 546 667 euros

- Vienna, Austria - about 538,000 euros

Most of these cities are important financial or economic centers in Europe. High incomes, stable demand from foreign investors, and limited housing supply put considerable pressure on the real estate market, which leads to rapid price growth.

To learn more about the best countries in Europe to live and work in 2026, please follow the link.

Where is the cheapest housing among European capitals?

Despite the rapid growth of real estate prices in many major European cities, some capitals remain much more affordable to buy a home. According to the study, the lowest prices were recorded mainly in the countries of South-Eastern Europe, where real estate markets are developing more slowly and demand from international investors is still limited.

Skopje (North Macedonia) has become the most affordable capital of Europe for buying a home. The average cost of an apartment here is about 65 thousand euros, which is several times less than in most Western European capitals.

Other cities with relatively affordable real estate include:

- Sarajevo, Bosnia and Herzegovina - the average cost of housing is about 132,000 euros

- Bucharest, Romania - about 135,500 euros

Analysts explain the lower prices by several factors. First of all, it is lower incomes, slower economic development and less demand from foreign buyers and investors. As a result, real estate markets in these cities remain much more affordable compared to the financial centers of Western Europe.

In our previous article, we told you where in Europe it will be the cheapest to buy real estate in 2026.

Why are more and more Europeans choosing to rent instead of buying a home?

High real estate prices in many European capitals are gradually changing people's attitudes towards owning a home. While buying an apartment used to be considered an important financial goal, today more and more Europeans are consciously choosing to rent.

Analysts note that the level of home ownership in Europe is gradually declining. Financial barriers remain one of the key factors, but they are not the only reason for this trend.

Among people who do not plan to buy their own home:

- 53% are satisfied with their current living conditions

- 21% do not want to take on long-term financial obligations related to mortgages and property maintenance

- 19% say the main reason is the high cost of housing and significant initial costs

In addition, mobility remains important for many young professionals. Working in international companies often involves moving between cities and countries, so renting a home gives you more freedom and allows you to adapt to new opportunities in the labor market faster.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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