Denmark tops the housing affordability ranking in the EU: how many salaries are needed for an apartment.

Denmark has topped the ranking of European countries where it is most advantageous to buy housing. Despite being considered one of the most expensive countries in the European Union in terms of overall cost of living, the ratio of income to property prices is the most favorable for buyers here.

According to the analytical report from BestBrokers, in Denmark, a 100 square meter home costs an average of 114 net monthly salaries. For comparison, in Italy for the same area one would have to pay over 150 salaries, and in Slovakia — more than 180.

Housing prices in Europe continue to rise

Despite the favorable picture in Denmark, the overall situation in the housing market in the EU remains tense. According to Eurostat, in the first quarter of 2025, housing prices in EU countries increased by 5.7% compared to the same period in 2024. Rent has also become more expensive — by 3.2%.

The majority of Central and Eastern European countries are exhibiting a rapid increase in prices. In particular, in Romania, Poland, and Hungary, apartments have become 8-10% more expensive on average over the year. Meanwhile, salaries in these countries are rising more slowly, making real estate less affordable.

Why Denmark surpassed the rest of Europe

At first glance, it seems paradoxical that Denmark — a country where the overall cost of living exceeds the average European level by 43%, according to Eurostat — turned out to be the most attractive for purchasing housing. However, this can be explained by several factors:

1. High average salary. Denmark ranks 7th in Europe for income level, ensuring high purchasing power for citizens.
2. Market regulation. Mortgage programs in the country have fixed rates, protecting buyers from market fluctuations.
3. Stability. The real estate market does not show violent spikes, allowing for long-term planning of home purchases.

'Housing affordability is not just about prices, but also about the income to expenditure ratio. Danes have high purchasing power, which makes their situation favorably distinct from the rest of the EU'

Which EU countries have the most expensive housing

On the opposite end of the ranking are Switzerland, Slovakia, and the Czech Republic. In these countries, citizens are forced to spend over 180 net monthly salaries to acquire standard housing.

In Switzerland, the situation is worsened not only by high prices but also by limited access to real estate for foreigners. In the Czech Republic, despite economic growth, prices for apartments have nearly doubled over the past 5 years.

This creates a profound inequality between those who already own property and the youth or newcomers who are forced to rent housing under unfavorable conditions.

What will happen to housing prices by the end of 2025

Analysts expect that by the end of 2025, the cost of housing in Europe will rise by another 3-4%, while rental prices may increase by 2%. This is due to limited supply, rising costs of building materials, and deferred demand.

In the Baltic States, Poland, and Bulgaria, the interest in purchasing real estate from foreigners also intensifies the internal pressure on the market. Meanwhile, in countries such as Spain and Portugal, some stabilization is expected — due to decreased tourist demand for housing.

'In the coming years, the defining factor will be not so much the price but access to mortgages. If central banks keep rates high, demand will be restrained'

Conclusion: In Denmark, housing prices have proven to be the most favorable for buyers in Europe, even compared to other expensive countries. However, the overall situation in the EU housing market remains tense, as prices continue to rise, especially in the countries of Eastern and Central Europe. Further price increases are predicted by the end of 2025, which may make real estate less accessible for most citizens.