Budapest has been named the third most cost-effective city in Europe to buy a house

A study has 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 those flexible first-time buyers in regards to location, it’s important for prospective buyers to be savvier with their budgets and find the most affordable options.

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THE EUROPEAN FIRST-TIME BUYER REPORT

A NEW REPORT REVEALS THE CHEAPEST AND MOST EXPENSIVE CITIES IN EUROPE FOR HYBRID WORKING FIRST-TIME BUYERS

• Madrid has been crowned the best city in Europe for first-time buyers with a score of 100.4/150
• Vienna and Bucharest take second and third positions in the report, with scores of 96/150 and 94.2/150, respectively
• Bucharest leads the way as the cheapest city in Europe to buy a home, with the average costing £35,831
• Paris is the most expensive city for first-time buyers to acquire property, with the average property costing £838,634
• Madrid emerges as the most affordable European city to secure a mortgage, with solo first-time buyers in Madrid paying up to 22.50% of their monthly salary towards their mortgage, while a two-person household with two paychecks will pay 11.25% each
• Paris has been crowned the best European city for social and cultural offerings outside of work, with a lifestyle score of 41.8/50
• Bucharest tops the table as the most affordable city for broadband, at an average £7.20 a month

For hybrid or remote working professionals, the events of the past two years have resulted in many workers no longer being tied to living in certain areas, cities, or even countries to work.

Meaning that many first-time buyers can look further afield when exploring where to purchase their first home.

In the new European First-Time Buyer Report, the experts at NerdWallet have analysed 30 European cities to determine which destinations lead the way when it comes to the best and most affordable to purchase a property in.

Top 10 Best European Cities for First-Time Buyers:

Source: NerdWallet

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

The cultural hub of Madrid is renowned for its elegant boulevards, historical buildings, and renaissance and contemporary art museums.

Coming in a close second is the stunning city of Vienna in Austria, with an overall score of 96/150.

Sitting on the stunning Danube River, the Austrian city, often referred to as the World’s 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 some outdoor exercise.

Bucharest, Romania’s capital city, secures the final place in the top three as one of the best cities in Europe for first-time buyers, with a score of 94.2/150.

The cultural, industrial and financial hub of Romania has lots to offer for new homeowners, from its 2,224 restaurants.

Finding itself in last place on the list, and therefore deemed one of the less desirable cities in Europe for first-time buyers, is the Bulgarian capital, Sofia, with an overall score of just 53/150.

While the beautiful city does have lots to offer its residents, it has a slower broadband speed than many of its European counterparts, as well as one of the highest average mortgage repayments (£1,865 per month).

Revealed: The cheapest European cities for purchasing a house

Home-buyers that work remotely or even on a hybrid office basis can be more flexible with regards to location. Therefore, first-time buyers can be savvier with their budgets and find the most affordable options.

The European First-Time Buyer Report analyses 30 European cities and determines which cities are home to the cheapest average house prices for potential buyers.

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

Source: NerdWallet

Bucharest leads the way as the cheapest city in Europe to buy a home, with the average house price costing a budget-friendly £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 neighbouring European cities.

The bustling Latvian city of Riga secures its spot as the second cheapest location to buy a house, costing on average £46,316 with a 20% deposit of just £9,263.

Climbing the ranks to third place as one of the cheapest destinations to buy a home in Europe is Budapest, the Hungarian capital, with the average house costing £86,262, with a 20% deposit of £17,252.

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

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

Top 10 most expensive European cities to buy a home:

Source: NerdWallet

The European First-Time Buyer Report has determined that Paris is the most expensive city for first-time buyers to acquire property, with the average house price costing an eye-watering £838,634. This means that those looking to move to the city of love will need to put down a 20% house deposit of £167,727.

Second in line as the least affordable city for first-time buyers to purchase a home is Munich, with houses costing £723,694 on average. Putting down roots in the German city will require buyers to pay a 20% deposit of £144,739.

Germany’s capital Berlin ranks as the third most expensive city for buyers looking for their first house, with the average house costing £680,930. The popular tourist city is rich in history, meaning that houses come with a hefty price tag, and a 20% deposit would come to £136,186.

Ranked: Top 10 Cheapest European Cities for Monthly Mortgage Repayments

With the cost of living rising, many soon-to-be first-time buyers are on the lookout for a more affordable mortgage. So, which cities in Europe have the lowest mortgage repayments based on the average earnings of solo and joint income first-time buyers?

Source: NerdWallet

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

Riga climbs the ranks to second place with a monthly mortgage payment costing a budget-friendly £195 a month. Those buying alone in Riga will be expected to pay 23.60% of their monthly wage, whilst a two-paycheck household will be contributing just 11.80% of their pay.

Vienna is named the third most affordable city to take out a mortgage on a house, costing a modest £531 a month. A single-person household in Vienna will spend 27.32% of their monthly wage 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 a month. Those purchasing a house alone will be expected to pay out 46.04% of their monthly earnings or the cost split between two people will be 23.02%

Cheapest European cities for monthly broadband costs

With many companies making the move toward hybrid and remote working, broadband costs and speed have become an important consideration for many first-time buyers when choosing a location to put down roots (and set up their home office).

The European First-Time Buyer Report reveals which European destinations are leading the way for the cheapest monthly broadband costs: