City Comparison: Real Estate Prices in European Metropolises in 2025

The European real estate market in 2025 continues to show significant dynamics, reflecting macroeconomic processes, demand levels, and urban development specifics. In recent years, property prices per square meter in major European metropolises have experienced notable fluctuations due to interest rate shifts, investment activity, and government policies. This article provides an analysis of housing prices in leading European capitals, identifies key factors affecting their changes, and explores trends and forecasts for the future.
1. Average Real Estate Prices in Major European Cities
According to analytical agencies, in 2025, the average cost per square meter of housing in major European capitals is as follows:
Average Price per 1 m² (€) Change from 2024 (%)
London 15,200                                   +4.5%
Paris 13,700                                        +3.9%
Berlin 7,900                                         +2.8%
Madrid 5,600                                       +3.5%
Rome 5,300                                         +3.0%
Vienna 8,100                                        +2.9%
Amsterdam 10,800                              +4.3%
Barcelona 6,400                                  +3.7%
Brussels 5,000                                     +2.5%
Dublin 9,300                                         +3.8%
Copenhagen 8,600                              +3.5%
Stockholm 8,000                                  +2.9%
Helsinki 6,600                                       +2.7%
Prague 5,900                                        +4.4%
Warsaw 4,800                                       +5.2%
2. Key Factors Influencing Pricing
2.1 Impact of Interest Rates and Inflation
Rising interest rates from the European Central Bank (ECB) have affected loan costs, which in turn has influenced the real estate market. In 2025, the average mortgage rate is 5.0–5.7%, slowing price growth in some cities. Additionally, inflation in the Eurozone is at 3.1%, which also affects construction material and labor costs.
2.2 Investment Activity
Key European cities remain attractive to investors. London, Amsterdam, and Berlin continue to be among the most liquid markets, while Prague and Warsaw demonstrate stable investment growth due to more affordable housing prices and increasing demand.
2.3 Government Policies and Taxation
Local regulations also play a significant role. For example, Berlin enforces rental price controls, limiting the potential for rapid property value growth. Conversely, London has relaxed tax burdens on foreign investors, boosting demand.
3. Major Trends in the Real Estate Market
3.1 Increasing Interest in Southern Europe
Spain, Portugal, and Italy are experiencing higher demand for real estate, driven by investment attractiveness and the growing number of remote workers relocating to regions with a milder climate.
3.2 Eastern European Cities as an Alternative
Prague and Warsaw remain appealing to buyers due to relatively low property prices and improving economic conditions. Housing costs in these cities are on average 30-50% lower than in Western European capitals, making them promising for investors.
3.3 Growth in Demand for “Green” Technologies
Sustainable buildings with energy-efficient technologies are increasingly sought after. Northern European countries, particularly Sweden, Denmark, and Finland, are leading in this trend, with 35% of new developments certified as “green buildings.”
4. Forecasts and Recommendations
4.1 For Buyers
• Consider rising mortgage rates and conduct thorough market analysis before purchasing.
• Investors seeking high returns should look at cities with increasing property values, such as Warsaw and Prague.
• Southern Europe is expected to see further price increases of 3-6% in the coming years.
4.2 For Investors
• Rental prices in most European metropolises are expected to rise. On average, rental rates are increasing by 3.5-5% annually.
• Eastern Europe remains a promising area for long-term investment.
• “Green” real estate and energy-efficient buildings will provide higher returns due to tax incentives and energy savings.
4.3 For Developers
• Infrastructure development and sustainable building construction are becoming key market requirements.
• In high-investment activity cities (London, Paris, Amsterdam), demand for premium properties remains stable.
• Government-supported housing programs may influence demand distribution in the medium term.
The European real estate market remains dynamic and influenced by macroeconomic factors. In 2025, price growth continues, but rates vary by region and local policies. Investors and buyers should consider economic conditions, tax changes, and interest rate influences to make informed decisions. Eastern Europe and Southern Europe are becoming increasingly attractive, while sustainable projects ensure long-term profitability. A strategic investment approach and careful property selection will help minimize risks and maximize returns.