Budapest has been named the third most profitable city in Europe to buy a house

A study ranked cities across Europe based on how affordable they are for first-time buyers, with Budapest taking third place for the cheapest city to buy a home.

For these location-flexible first-time buyers, it’s important that potential buyers be more budget savvy and find the most affordable options.

1 GBP to EUR: 1.18 euros

1 GBP to HUF: 467.2 pi

THE EUROPEAN FIRST-TIME BUYERS REPORT

NEW REPORT REVEALS EUROPE’S CHEAPEST AND MOST EXPENSIVE CITIES FOR FIRST-TIME HYBRID-BUYERS

  • Madrid was crowned the best city in Europe for first-time buyers with a score of 100.4/150
  • Vienna and Bucharest occupy the second and third positions in the report, with dozens of 96/150 and 94.2/150respectively
  • Bucharest is the cheapest city in Europe to buy a house, with an average cost £35,831
  • Paris is the most expensive city for first-time buyers to acquire a property, the average cost of a property £838,634
  • Madrid emerges as the most affordable European city to get a mortgage, with single first-time buyers in Madrid paying up to 22.50% of their monthly salary for their mortgage, while a two-person household with two paychecks will pay 11.25% each.
  • Paris was voted best European city for the social and cultural offer outside work, with a lifestyle score of 41.8/50
  • Bucharest tops the list of most affordable cities for broadband, averaging £7.20 per month

For hybrid or remote working professionals, the events of the last two years have meant that many workers are no longer tied to living in certain regions, cities or even countries to work.

That means many first-time buyers can look further afield when exploring where to buy their first home.

In the new European First Home Buyers Reportexperts from NerdWallet analyzed 30 European cities to determine which destinations are leading the way when it comes to the best and most affordable places to buy property.

Top 10 of the best European cities for first-time buyers:

Town Rating /150
1 Madrid 100.4
2 Vienna 96
3 Bucharest 94.2
4 Budapest 92.1
5 Marseilles 88.7
6 birmingham 84.2
seven Warsaw 84.2
8 prague 83.5
9 Rome 81.5
ten Paris 81.5

Source: NerdWallet

The Spanish capital Madrid wins the crown of Europe’s best city for first-time buyers according to the report, with a total score of 100.4/150.

Madrid’s cultural center is renowned for its elegant boulevards, historic buildings and Renaissance and contemporary art museums.

Second is the beautiful city of Vienna in Austria, with an overall score of 96/150.

Located on the beautiful Danube River, the Austrian city, often called the world capital of classical music, is home to a number of opera houses and concert halls. Vienna also has 2,000 parks to explore for a leisurely stroll or outdoor exercise.

Bucharest, the capital of Romania, secures the last place in the top three of the best cities in Europe for first-time buyers, with a score of 94.2/150.

Romania’s cultural, industrial and financial center has a lot to offer new owners, thanks to its 2,224 restaurants.

At the bottom of the list, and therefore considered one of the least popular cities in Europe for first-time buyers, is the Bulgarian capital, Sofia, with an overall score of barely 53/150.

Although the beautiful city has a lot to offer its inhabitants, it has slower broadband speeds than most of its European counterparts, as well as one of the highest average mortgage repayments (£1,865 per month).

Revealed: The cheapest European cities to buy a house

Homebuyers working remotely or even on a hybrid office basis may be more flexible with location. Therefore, first time buyers can be more budget savvy and find the most affordable options.

The European First-Time Buyers Report analyzes 30 European cities and determines which cities have the cheapest average house prices for potential buyers.

Top 10 cheapest cities in Europe for first-time buyers:

Town Country Average house price Deposit amount 20% House price less deposit
1 Bucharest Romania £35,831 £7,166 £28,665
2 Riga Latvia £46,316 £9,263 £37,053
3 Budapest Hungary £86,262 £17,252 £69,009
4 Madrid Spain £87,313 £17,463 £69,851
5 Vienna Austria £130,480 £26,096 £104,384
6 Belgrade Serbia £147,315 £29,463 £117,852
seven Krakow Poland £164,633 £32,927 £131,706
8 Warsaw Poland £165,992 £33,198 £132,794
9 liverpool UK £202,179 £40,436 £161,743
ten prague Czech Republic £221,176 £44,235 £176,941

Source: NerdWallet

Bucharest is the cheapest city in Europe to buy a house, with the average house price costing £35,831. The 20% deposit will also be a modest £7,166, a much more affordable amount for first-time buyers than in some of its neighboring European cities.

The bustling Latvian city of Riga secures its place as the second cheapest location to buy a home, costing an average of £46,316 with a 20% down payment of just £9,263.

Budapest, the Hungarian capital, is the third cheapest destination to buy a house in Europe, with the average house costing £86,262, with a 20% down payment of £17,252.

Most first-time buyers are looking to buy on a budget and find an affordable area to settle in, which is why some of the popular tourist destinations in Europe are out of their price range.

In this case, Paris, Munich and Berlin are among the most expensive cities in Europe for first-time buyers buying their first home.

Top 10 of the most expensive European cities to buy a house:

Town Country Average house price Deposit amount 20% House price less deposit
1 Paris France £838,634 £167,727 £670,907
2 Munich Germany £723,694 £144,739 £578,955
3 Berlin Germany £680,930 £136,186 £544,744
4 Hamburg Germany £670,885 £134,177 £536,708
5 Barcelona Spain £627,291 £125,458 £501,833
6 Copenhagen Denmark £621,781 £124,356 £497,425
seven London UK £514,000 £102,800 £411,200
8 amsterdam Netherlands £510,843 £102,169 £408,674
9 stockholm Sweden £484,919 £96,984 £387,935
ten Brussels Belgium £449,590 £89,918 £359,672

Source: NerdWallet

The European First Home Buyers Report determined that Paris is the most expensive city for first-time buyers to buy property, with the average house price costing £838,634. This means those looking to move to the City of Love will need to put down a 20% down payment on the £167,727 home.

Munich is the second least affordable city for first-time buyers, with homes costing an average of £723,694. To set up shop in the German town, buyers will need to pay a 20% down payment of £144,739.

The German capital, Berlin, ranks as the third most expensive city for buyers looking for their first home, with the average house costing £680,930. The popular tourist town is steeped in history which means houses are priced high and a 20% down payment would cost £136,186.

Ranked in the Top 10 cheapest European cities for monthly mortgage repayments

With the cost of living rising, many future first-time home buyers are looking for a more affordable mortgage. So which cities in Europe have the lowest mortgage repayments based on the average incomes of first-time solo and condominium buyers?

Town Average house price Deposit amount 20% House price less deposit Mortgage interest rate (%) Monthly mortgage payments Average monthly salary (one person) Mortgage payments as % of income (Solo) Average monthly salary (two households) Mortgage payments as % of income (Co-owner)
Madrid £87,313 £17,463 £69,851 2.05 £355 £1,577.74 22.50% €3,155.48 11.25%
Riga £46,316 £9,263 £37,053 2.44 £195 £826.12 23.60% €1,652.24 11.80%
Vienna £130,480 £26,096 £104,384 2.07 £531 £1,943.51 27.32% £3,887.02 13.66%
Bucharest £35,831 £7,166 £28,665 5.65 £199 £685.04 29.05% £1,370.08 14.52%
birmingham £238,686 £47,737 £190,949 2.91 £1,050 £2,280.78 46.04% £4,561.56 23.02%
Dublin £297,140 £59,428 £237,712 3.25 £1,348 £2,559.60 52.66% €5,119.20 26.33%
liverpool £202,179 £40,436 £161,743 3.36 £926 €1,664.24 55.64% £3,328.48 27.82%
Marseilles £311,907 £62,381 £249,526 1.73 £1,230 £2,091.48 58.81% £4,182.96 29.41%
Budapest £86,262 £17,252 £69,009 6.41 £510 £785.11 64.96% £1,570.22 32.48%
Torino £234,477 £46,895 £187,582 1.52 £906 €1,297.43 69.83% £2,594.86 34.92%

Source: NerdWallet

Madrid secures itself as the most affordable European city for a mortgage, with monthly payments priced at a reasonable £355. Solo first-time buyers in Madrid can expect to pay 22.50% of their monthly salary for their mortgage, while a two-person household with two paychecks will pay 11.25% each.

Riga climbs the ladder to second place with a monthly mortgage payment costing £195 a month. Those who buy alone in Riga will have to pay 23.60% of their monthly salary, while a two-earner household will only contribute 11.80% of their salary.

Vienna is named the third most affordable city to take out a mortgage on a house, costing a mere £531 per month. A one-person household in Vienna will spend 27.32% of their monthly salary on their mortgage, while a household with two paychecks will pay 13.66% each.

In the UK, Birmingham is the most affordable city to take out a mortgage, costing £1,050 per month. Those who buy a house alone will have to pay 46.04% of their monthly income or the cost shared between two people will be 23.02%

Cheapest European Cities for Monthly Broadband Costs

As many companies shift to hybrid and remote working, broadband costs and speeds have become an important consideration for many first-time buyers when choosing a location to put down roots (and set up their office at residence).

The European First Home Buyers Report reveals which European destinations lead the way to the cheapest monthly broadband costs:

Town Country Monthly cost of broadband per household Broadband speed by country (Mbps)
1 Bucharest Romania £7.20 232.17
2 Sofia Bulgaria £9.66 86.75
3 Warsaw Poland £10.41 156.33
4 Budapest Hungary £10.66 210.55
5 Krakow Poland £11.50 156.33
6 Riga Latvia €12.27 135.22
seven prague Czech Republic £16.54 48.37
8 Belgrade Serbia £18.59 86.77

Mary I. Bruner