Global housing prices hit record highs in 2025

By Emirhan Yilmaz, Ugur Aslanhan and Emir Yildirim

ISTANBUL (AA) — Housing prices surged to record levels in major cities around the world as the post-pandemic habit of remote working reshaped rental demand, while New York posted the highest rent worldwide, according to a report by Deutsche Bank.

New York’s monthly average rent reached $4,143, up 22% over the past five years, according to the report outlining the top 20 cities with the highest rents.

Boston followed with an average monthly rent of $3,394, as high land and material costs hampered residential construction in the city, leading to low supply of homes and a 25% price increase in the past five years.

San Francisco ranked fourth globally with an average rent of $3,332, up only 1% over five years.

Singapore came after the three U.S. cities with an average monthly rent of $3,167, marking a 55% surge.

London’s rent prices climbed 39% over the last five years to an average of $2,985, followed by Zurich with a 35% rise to $2,720, Los Angeles with $2,613 and a 17% increase, and Dubai with $2,401 after a 54% surge.

Rent in Dublin rose 26% to an average of $2,378 per month, while residents of Amsterdam now pay an average of $2,358, up 32%.

Chicago’s average rent rose 25% to $2,344, followed by Geneva with a 20% rise to $2,330, while the average monthly rent in Hong Kong declined 3% over the past five years to $2,202.

Rent in Sydney surged 23% to $2,164, followed by Luxembourg with a 23% rise to $2,086, Copenhagen with a 32% increase to $2,021, Vancouver Island with a 34% rise to $1,994, Toronto with a 14% increase to $1,807, Munich with a 23% rise to $1,759, and Oslo with a 28% jump to $1,689.

Bayram Tekce, chair of Türkiye-based Real Estate Service Exporters Association (GIGDER), told Anadolu that rents rise alongside housing prices: “When demand rises, investors can raise sale prices, expecting to make a return on investment.”

"Globalization and the migration of the workforce into cities, as well as the preference for city centers by white-collar workers, boost the local and global demand of cities — this is seen especially in finance, technology, and media centers," he said. "As tourist demand increases, hotels fail to meet the growing potential, which lead to the development of platforms like Airbnb, where each apartment is turned into a revenue model."

“Narrowing supply, zoning and land limitations also push up rents and sales prices, while high demand further increases prices when supply is tight,” he added.

Ahmet Buyukduman, a Turkish real estate economist, told Anadolu the ranking of cities was unsurprising:
“Rent levels are linked to income levels.”

“Rent is high in cities where the per capita income is high,” he said, noting that rents in Türkiye have also surged in recent years as incomes increased.