Romania recorded the strongest annual increase in residential property prices among the European countries analysed by Deloitte, with average housing costs rising 14.4% to €1,917 per square metre in 2025. Despite the increase, the country remained the fourth-cheapest residential market, behind Turkey, Serbia and Albania.
The study, covering major cities across 25 European countries, including 20 European Union members, found that residential prices increased in 19 of the 22 countries with available national data. Luxembourg remained Europe’s most expensive residential market, with an average price of €9,160 per sqm, up 4.6% from 2024, nearly five times the Romanian average.
Romania leads European house price increases
Romania’s 14.4% annual increase was followed closely by Croatia, where residential prices rose 14.3%, Slovakia with 12.5%, and Hungary with 10.9%, while Turkey and Serbia recorded declines of 9% and 2.5%, respectively.
Among the European Union markets covered by the study, the Czech Republic reported an average residential price of €5,412 per sqm, followed by Germany at €5,200, Austria at €5,199 and the Netherlands at €5,186.
At the lower end of the ranking, Turkey recorded an average price of €864 per sqm, Serbia €1,706, Albania €1,720, Romania €1,917 and Greece €1,931. National average figures were unavailable for Denmark, Bulgaria and Ireland.
Cluj-Napoca remains Romania’s most expensive city
Cluj-Napoca retained its position as Romania’s most expensive major residential market, with an average price of €3,137 per sqm in 2025, representing an annual increase of 13.2%. Brașov ranked second at €2,156 per sqm, up 13.6%, while Bucharest followed at €2,026 per sqm, after recording a 15.3% increase, the strongest growth among the three Romanian cities.
Romania is among several European countries where the capital is not the most expensive residential market, alongside Germany, where Munich leads the ranking, Italy with Milan and Spain with Barcelona.
Munich becomes Europe’s most expensive residential city
Munich overtook Luxembourg to become the most expensive city in Deloitte’s European residential ranking, with an average price of €11,200 per sqm in 2025. Luxembourg ranked second at €10,567 per sqm, followed by Amsterdam at €8,650 and Barcelona at €8,037.
The sharpest annual price increases were recorded in Durrës, Albania, where residential values rose 24%, and Belgrade, Serbia, with growth of 20%. Bratislava recorded an increase of 17.2%, Budapest 11.1% and Copenhagen 10.6%.
Bucharest leads Romanian rental prices
The ranking changes in the rental market, where Bucharest recorded Romania’s highest average monthly rent at €11.2 per sqm, followed by Cluj-Napoca at €10.3 and Brașov at €9.3. Across the European cities analysed, Luxembourg had the highest average monthly rent at €45.4 per sqm, ahead of Paris at €31.2, Barcelona at €30.9 and Dublin at €30.8.
