Apartment rent in European metropolises averages 17.25 euros

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A look at Munich: The average price for the sale is 9600 euros per square metre

Photo: Andreas Haas / IMAGO

The sharp rise in interest rates across Europe has caused the business of real estate financiers to collapse – fewer and fewer can or want to afford a house or apartment in addition to the significant increase in prices. When it comes to rents, on the other hand, the picture is different, as the real estate consultancy Catella has found out on the basis of an analysis of the residential real estate market in 63 cities in 20 different European countries.

Tenants in major European cities outside Germany often have to pay significantly more than in Germany. According to the analysis, the average apartment rent (all years of construction) is currently 17.25 euros per square metre.

33.10 euros per square metre in London

The regional differences are great. While in Liège, Belgium (9.50 euros per square metre) and Brno, Czech Republic, with an average of ten euros per square metre, it is still possible to live comparatively cheaply, according to Catella, prospective tenants in London (33.10 euros), Geneva (31 euros) or Luxembourg (30 euros) would have to spend significantly more money per square metre.

According to the information, it is only slightly cheaper in Amsterdam, Dublin, Oslo, Paris and Zurich. Here, too, according to Catella, the mark of at least 25 euros per square metre is broken everywhere on average for rentals. For metropolises in Germany, the consulting firm quotes prices per square metre of up to 21.50 euros in Munich, while it is cheaper in Frankfurt (16.75 euros), Berlin (16 euros), Hamburg (14.50 euros), Cologne (14 euros) or Düsseldorf (12.60 euros).

The question of how expensive housing is also influences how much housing a tenant can afford against the background of the incomes paid in the cities. Based on the premise that people can spend up to a quarter of their net household income on cold rent, Catella has also found large regional differences.

In the case of purchase prices, on the other hand, the range also diverges, according to the analysis – from an average of 1720 euros in Lahti, Finland, to 15,350 euros in Geneva. The average purchase price for a condominium in Europe (all years of construction) is currently 5235 per square meter, although the German metropolises are quite far from these averages. While in Cologne, an average of 5050 euros per square meter was due, 6350 euros were paid in Hamburg and 9600 euros in Munich.

According to Catella, the cities of Vilnius, Riga, Krakow and Wroclaw are currently particularly attractive for investors. Investors have recently been able to record returns of more than five percent on average.

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