The most affordable and most expensive countries in Europe: change in housing prices in 2026

The European real estate market has gone through several sharp turns: steady growth until 2020, the blow of the Covid-19 pandemic, recovery in 2021, a price surge in 2022, and a slowdown in 2023. Where is the market heading next? We break down the latest prices — from the most expensive to the most affordable.

New-Build Prices Across Europe

The Israeli market tops the cost rankings: Tel Aviv holds first place in housing prices among all cities studied. Among countries overall, Austria ranks second (€5,053 per sq. metre), followed by Germany in third (€4,800). Portugal (€5,049) and Luxembourg (€11,074 per sq. metre in the capital agglomeration) also maintain high price levels.

At the opposite end of the scale sits Turkey, with prices at €1,552 per sq. metre. Slightly more expensive are apartments in Bosnia and Herzegovina (€2,132), Romania (€2,204), and Greece (€2,719). These destinations remain the main draw for buyers working with a limited budget.

Prices by country — new builds 2026

• 🇮🇱 Israel (Tel Aviv) most expensive €13,970 / m²
• 🇱🇺 Luxembourg €11,074 / m²
• 🇵🇹 Portugal €5,053 / m²
• 🇦🇹 Austria €5,053 / m²
• 🇩🇪 Germany €4,800 / m²
• 🇬🇷 Greece €2,719 / m²
• 🇦🇱 Albania €2,453 / m²
• 🇷🇴 Romania €2,204 / m²
• 🇧🇦 Bosnia and Herzegovina €2,132 / m²
• 🇹🇷 Turkey most affordable €1,552 / m²

Italy saw the steepest price drop. An interesting detail: the most expensive city in the country turned out to be not Rome, but Milan.

The Most Expensive Cities to Buy

Tel Aviv tops the list with a price of €13,970 per sq. metre. It is followed by Luxembourg (€11,074), Munich (€10,800), and Paris (€10,760). London, Amsterdam, and Frankfurt form the next tier, with prices ranging from €7,700 to €8,018 per sq. metre.

Top 7 cities — new-build purchase prices

• 1 🇮🇱 Tel Aviv €13,970 / m²
• 2 🇱🇺 Luxembourg €11,074 / m²
• 3 🇩🇪 Munich €10,800 / m²
• 4 🇫🇷 Paris €10,760 / m²
• 5 🇬🇧 London €8,018 / m²
• 6 🇳🇱 Amsterdam €7,850 / m²
• 7 🇩🇪 Frankfurt €7,700 / m²

One-Bedroom Rental Prices in City Centres

London is Europe's most expensive rental market: renting a one-bedroom apartment in the city centre costs €2,923 per month. Amsterdam (€2,562) and Galway (€2,424) follow close behind. Data provided by Numbeo.

High rental costs

• 🇬🇧 London €2,923 / mo.
• 🇳🇱 Amsterdam €2,562 / mo.
• 🇮🇪 Galway €2,424 / mo.
• 🇮🇪 Dublin €2,462 / mo.
• 🇩🇰 Copenhagen €2,039 / mo.
• 🇳🇴 Oslo €1,898 / mo.
• 🇪🇸 Barcelona €1,667 / mo.
• 🇩🇪 Munich €1,637 / mo.
• 🇪🇸 Madrid €1,462 / mo.
• 🇳🇴 Trondheim €1,440 / mo.
• 🇳🇴 Bergen €1,395 / mo.

Affordable rental costs

• 🇧🇬 Burgas €542 / mo.
• 🇧🇬 Varna €565 / mo.
• 🇬🇷 Thessaloniki €630 / mo.
• 🇮🇹 Turin €842 / mo.
• 🇪🇸 Alicante €1,005 / mo.
• 🇵🇹 Porto €1,274 / mo.
• 🇫🇷 Paris €1,533 / mo.
• 🇵🇹 Lisbon €1,588 / mo.

The most affordable rentals are found in Bulgaria's Burgas (€542) and Varna (€565), as well as in Greece's Thessaloniki (€630) and Italy's Turin (€842). Despite their low price levels, Bulgarian cities have seen explosive rental growth following the country's entry into the Schengen Area and the eurozone.

Record rental rate increases were recorded in Manchester (+51.4%), Porto (+35.6%), central London (+27.3%), Lisbon (+24.8%), and Alicante (+21.7%). At the other end of the scale are Lyon (-10.5%), Oslo (-6.1%), and Trondheim (-6%).

Where Investors Are Looking

The housing shortage in major European cities shows no signs of easing. Governments are responding by tightening rental market regulation, aiming to make it more stable and accessible for the broader population.

Investors are increasingly channelling funds into build-to-rent developments — a segment that is booming. Modern rental complexes are being designed with gyms, co-working spaces, and other amenities. As long as city dwellers continue to favour renting over buying, demand for such properties will only keep growing.

Emerging Market Trends

The real estate market is being reshaped by two powerful forces: environmental requirements and digital technology. Buyers are increasingly choosing energy-efficient homes with a low carbon footprint, a trend confirmed by Deloitte data.

Environmental standards are tightening across Europe: the number of properties with green spaces is rising, and developers are rolling out solar panels and smart climate control systems on a large scale.

Digitalisation is transforming the entire transaction chain. Virtual tours give international buyers a full picture of a property without the need to travel. Contracts are signed online — making the entire purchase process faster and more transparent.

Sustainability and technological innovation are setting a new standard for housing. Market players who adapt to these demands ahead of others will gain a competitive edge in the years to come.