Renting vs. Buying Property in Europe: Pros, Cons and Cost Considerations

It depends on the country and city. In markets like Switzerland or Sweden, renting is often cheaper due to high property prices. In Eastern Europe and parts of Spain or Italy, buying is usually more cost-effective over the long term.

A price-to-rent ratio under 15 generally favors buying, while over 20 suggests renting is more affordable. Ratios between 15-20 fall into a “grey zone,” where lifestyle and long-term plans should guide the decision.

Cultural factors, strict lending rules, and strong tenant protections encourage renting. In Germany, more than half of households rent, while in Switzerland high property costs make ownership less accessible.

Most experts recommend at least 5-7 years. This time frame allows buyers to offset transaction costs, build equity, and benefit from potential property appreciation.

Yes, in many regions - especially Central and Eastern Europe - buying property provides strong ROI due to rising prices and rental demand. However, in very expensive markets (e.g., Zurich, Copenhagen, Luxembourg), returns may be lower and renting can be financially smarter.