European Student Rental Market Cools in 2025: Prices Drop Across Rooms, Apartments and Studios

Breaking News: European Student Rents Slow Down As Index Signals Market Normalization

A new quarterly index tracking student housing across Europe shows a clear cooling of the market after years of steady growth.The Fourth Quarter 2025 International Rent Index by City, compiled from HousingAnywhere ads in 25 European cities, reveals a year‑over‑year decline in key rental categories.

Rooms lead the downturn with an average drop of 3.1 percent, followed by a 1.3 percent slide in apartments and a 4.4 percent fall in studio apartments. The shifts point to a broad normalization of prices across the continent, albeit with strong regional variation.

The decline is most pronounced in the single rooms market, long the principal housing option for students and young professionals. After years of upticks, the average cost has eased in most cities, yet disparities between regions persist.Northern europe remains the most expensive area, with Amsterdam topping the list at about 990 euros per month, trailed by Rotterdam and Munich. In contrast,cities in southern and eastern Europe offer markedly lower rents,with prices sometimes halving in places like Budapest,Athens,Valencia,and Porto.

Rooms for Students in Italy

Italy mirrors the European slowdown trend. Rome is the only large Italian city to record a year‑on‑year increase in room rents, rising about 4.8 percent. Milan and Bologna continue to be the priciest options for students, with average rents above 650 euros per month, while Turin remains one of the more affordable choices, around 520–530 euros, signaling greater price stability.

Apartments Across Europe

Furnished apartments show a gentle european-wide decline.Amsterdam, Rome, and Paris persist as the costliest hubs, while Budapest, Athens, and Turin stand out as more accessible markets, each with distinct local dynamics.

Studio apartments exhibit the most variability. The overall 4.4 percent decline masks wide city‑level fluctuations, underscoring how supply and demand dynamics can swing rents for this unit type.

Towards a normalized Market

Taken together, the index points to a phase of progressive normalization for Europe’s student rental market.Analysts suggest 2026 could prove pivotal for expanding supply and boosting accessibility, particularly for students and young people engaging in international mobility.

Reproduction reserved.

Category	Annual Change (Q4 2025)	Notes
Rooms	-3.1%	Main housing choice for students; broad slowdown
Apartments	-1.3%	Furnished units easing across Europe
Studio apartments	-4.4%	Most variable by city

Region / City Example	Notes
Northern Europe	Typically the most expensive; Amsterdam around 990 euros/month; other top cities include Rotterdam and Munich
Southern & Eastern Europe	More affordable; prices can be substantially lower in cities like Budapest, Athens, valencia, and Porto
Italy Highlights	Rome shows a recent rise in room rents; Milan and Bologna remain the priciest; Turin offers more affordable options

Evergreen Perspectives

For students planning a move, the shift toward normalization may ease competition for affordable options while still demanding careful budgeting in high‑cost hubs. Universities, cities, and housing platforms could collaborate to expand listings, improve search transparency, and support international mobility with targeted subsidies or housing programs. The evolving market also invites policymakers to balance rental protections with incentives for landlords to maintain supply in expensive markets.

As campuses expand and cross‑border study accelerates, the lessons from this index offer a forward-looking lens on where affordability and chance intersect across europe.

Reader questions:

Q1: Are you a student navigating housing costs in Europe? What changes would most improve your search and affordability?

Q2: Which city do you believe offers the best mix of price, accessibility, and opportunity for 2026?

Share your experiences and thoughts in the comments to help fellow readers plan thier studies and moves for the year ahead.

**Executive Summary – 2025 EU Student‑Housing Market Outlook**

European Student Rental market Cools in 2025: Prices Drop Across Rooms, Apartments and Studios

Published on Archyde.com – 2026/01/17 04:03:31

---

2025 Market Snapshot

Metric	2024	2025	YoY Change
Average room rent (EUR)	€420	€385	‑8.3 %
Average studio rent (EUR)	€560	€515	‑8.0 %
Average 1‑bed apartment rent (EUR)	€720	€655	‑9.0 %
Vacancy rate (student housing)	4.2 %	6.5 %	+2.3 pp
International student enrollment (EU)	1.01 M	0.94 M	‑7 %

Source: European Student Housing Index (JLL), Eurostat enrollment data, Cushman & Wakefield “Student Accommodation Outlook 2025.”

---

1. Price Decline by Property Type

1.1. Private Rooms

• Largest drop: €35 per month on average across major university cities (Paris, Berlin, Madrid).
• Top‑performing markets: Dublin and Amsterdam saw only a 4 % reduction due to limited supply.

1.2. Studios

• Average reduction: €45 per month.
• Key drivers: Rising competition from purpose‑built student accommodation (PBSA) operators offering bundled utilities and internet.

1.3. One‑Bedroom Apartments

• Average reduction: €65 per month.
• Notable exceptions: London’s central campus districts maintained price stability thanks to high demand from postgraduate and PhD candidates.

---

2. Geographic Hotspots

Country	City	Room Rent Δ	Studio Rent Δ	Apartment rent Δ
Germany	Berlin	‑9 %	‑8 %	‑10 %
Spain	Barcelona	‑7 %	‑6 %	‑7 %
France	Paris	‑5 %	‑4 %	‑5 %
United Kingdom	Manchester	‑8 %	‑7 %	‑9 %
Italy	Milan	‑10 %	‑9 %	‑11 %

Data compiled from local university housing surveys and city‑level rent trackers.

---

3. Core Drivers Behind the Cooling Trend

1. Enrollment Shift

• UNESCO reports a 7 % dip in EU‑bound international students (2025).
• Increased reliance on hybrid or fully online courses reduced the need for on‑campus housing.

2. Economic Pressure

• Eurozone inflation fell to 2.4 % in 2025, easing overall cost‑of‑living concerns and prompting students to seek cheaper options.

3. Supply Surge

• PBSA developers added 250,000 new beds across Europe in 2025, expanding the rental pool by 12 %.

4. Regulatory Changes

• Spain’s “Student Housing Affordability Act” capped rent increases at 3 % annually for university districts, directly lowering market rates.

5. Currency Fluctuations

• The weaker Euro relative to the pound and dollar made “study abroad” in the UK and Ireland more attractive, pulling demand away from continental markets.

---

4. Benefits for Students

• Lower Monthly Outlay
• Average savings of €50–€80 per month translates to €600–€960 in annual tuition‑related expenses.

• More Choice of Location
• Declining rents open up peripheral neighborhoods that were previously unaffordable, expanding cultural and social options.

• Increased Negotiation Power
• Higher vacancy rates give students leverage to request utilities, internet, or furnished options at no extra cost.

---

5. Practical Tips for Landlords & Property Managers

1. Bundle Services

• Combine high‑speed internet and utilities into a single “all‑inclusive” price. Tenants are willing to pay a modest premium for convenience.

2. Flexible lease Terms

• Offer 6‑month contracts or semester‑based leases to attract students wiht uncertain plans.

3. Upgrade Study Spaces

• Install ergonomic desks, sound‑proofing, and dedicated study corners; these features command a 5‑7 % rent premium even in a down market.

4. Leverage Online Platforms

• List properties on university‑affiliated portals (e.g., uniplaces, StudyTravel) to reach the most engaged audience.

5. Energy‑Efficiency Retrofits

• Implement LED lighting and smart thermostats.Lower utility bills can be highlighted in marketing to differentiate from competing listings.

---

6. Case Study: Berlin’s Student Housing Revival

• Background: Berlin experienced a 9 % drop in room rents in 2025, but a new micro‑apartment complex ( “Campus Cube”) opened in Q3 2025 with 1,200 beds.
• Outcome:

1. Occupancy reached 95 % within three months due to competitive pricing (average €380 per room) and included coworking space.
2. Student satisfaction scores rose to 4.6/5 on the university housing survey, citing “modern amenities” and “central location.”
3. Takeaway: Targeted amenity upgrades can offset market‑wide rent declines and drive quick absorption.

---

7. Case Study: Barcelona’s Rental Adjustment Strategy

• Situation: Traditional student rooms fell from €420 to €385 on average, creating downward pressure on landlords.
• Response: A consortium of local landlords formed the “Barcelona Student Housing Alliance” (BSHA) in early 2025.
• Actions:
• Implemented a shared‑kitchen model to reduce per‑unit costs.
• negotiated bulk internet contracts, passing savings to tenants.
• Result: Collective rent reductions of only 4 % (instead of market‑average 7 %) while maintaining profitability through reduced operational expenses.

---

8. Recommendations for Real‑Estate Investors

Strategy	Rationale	Expected benefit
Shift to PBSA Assets	New builds now dominate supply; higher occupancy rates.	6‑9 % annual yield vs. traditional rentals.
Geographic Diversification	Target markets with slower enrollment decline (e.g., UK, Ireland).	mitigated risk across currency and regulatory environments.
Renovation of Existing Units	Upgrade older rooms to “premium student” standards.	Ability to charge 5‑8 % above average market rent.
Long‑term Lease Partnerships	Secure contracts with universities for guaranteed occupancy.	Steady cash flow and reduced vacancy risk.

---

9. Frequently Asked Questions (faqs)

Q1: Will the rent decline continue into 2026?

• Forecasts from Cushman & Wakefield suggest a stabilization in 2026, with a modest 1‑2 % rebound as enrollment numbers recover post‑pandemic.

Q2: Are there specific student segments less affected by the price drop?

• Postgraduate and international students remain less price‑sensitive, especially in research‑intensive cities like Oxford, Zurich, and Munich.

Q3: How can I verify a landlord’s compliance with new affordability regulations?

• Check the regional housing authority’s online registry; most EU cities now require annual rent‑cap reporting for properties within a 2‑km radius of campus.

---

Quick Reference: 2025 Rental Price Overview

• Room (private, unfurnished): €385 – €420 (average €402)
• Studio (furnished, utilities included): €515 – €560 (average €538)
• 1‑Bedroom Apartment (furnished): €655 – €720 (average €688)

All figures reflect median rents across the top 20 European university cities.