September 17, 2025, 3:37 pm | Read time: 4 minutes
Rent prices are not only relevant for locals or people who, for example, stay in a place for an extended period due to work. They can also affect travelers. High rent levels often drive up the costs for hotels and vacation rentals. Therefore, a recent study by the consulting firm Deloitte is particularly interesting. It reveals which European cities have the highest rents–with some surprising results.
Surely, you have visited a city, fallen in love with it immediately, and considered moving there. The next question that arises is: What are the living costs there? An answer to this–at least regarding rent levels in major European cities–is provided by the annual real estate index from Deloitte. The study shows how much buying a property costs in relation to income and also determined the average rental prices per square meter. Additionally, factors such as the cost-to-income ratio and the availability of well-located and attractive apartments were included in the ranking.
When thinking of the city with the most expensive rents in Europe, metropolises like Paris or London might quickly come to mind. However, another city–and its corresponding country–actually tops the ranking.
Luxembourg Has the Most Expensive Rents in Europe
According to the analysis, the average monthly rent in Luxembourg is a remarkable 43.40 euros per square meter. This is ten times what tenants pay in the city at the bottom of the ranking–in this case, Durrës in Albania. Albania is also known as a relatively affordable travel destination; at least for now. However, the report shows that property purchase prices there have recently increased significantly by 16.5 percent.
But back to the city with the most expensive rents in Europe. Analysts emphasize that Luxembourg has a limited supply of sought-after housing, which further drives up rent prices. How does this affect travelers? TRAVELBOOK compared average prices on booking platforms. These start at around 100 euros per night but can rise to about 185 during peak season. According to the database from Airroi, Airbnb stays in Luxembourg average between 150 and 160 euros per day.
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Places 2 and 3 in the Ranking
Now to Paris, the second-ranked city in the ranking. According to the Deloitte report, the city has been experiencing a housing crisis for some time, but there are finally “signs of recovery.” Here, tenants pay an average of 32 euros per square meter. That’s a lot–and it underscores once again the exorbitant rent prices in Luxembourg, which are still a hefty 11.40 euros per square meter higher. One can only say: The title of the city with the most expensive rents in Europe is more than justified for Luxembourg.
The Irish capital Dublin ranks third in the ranking. Here, average rental costs are 31.70 euros per square meter. The entire country has missed its housing construction targets in recent years, according to the report. This also explains another Irish placement in the “Top” Ten: The city of Galway ranks 10th in the unfortunate ranking with a rent price of 22.90 euros per square meter. The study authors emphasize that urgent measures are needed to achieve a sustainably affordable housing level.
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Surprisingly “Affordable” Rents in London
The placement of London, generally known as an expensive capital of England, might surprise many. After all, the city ranks only behind Barcelona, Oslo, Madrid, Amsterdam, and Copenhagen in 9th place. With around 23.80 euros per square meter, rent prices are, of course, still very high. But in light of the average prices for hotel stays–which, according to the comparison portal Momondo, are a hefty 212 euros per night–and not least in comparison with the 43.40 euros per square meter in Luxembourg, it almost seems affordable here.
How Expensive Is Renting in Germany?
Even though a slight increase is evident here according to the analysis, Germany is not among the top ten cities with the most expensive rents in Europe. In German cities, a typical rental apartment recently cost 21.90 euros per square meter in Munich and 18.50 euros in Frankfurt am Main. In the capital, 18.40 euros per square meter per month are due.