London sees biggest coworking cost drop in Europe as living costs stabilise

• bunq, Europe’s second largest neobank , reveals a significant drop in coworking and living costs for expats across European capitals.

• London and Dublin remain the most expensive cities for digital nomads, but are both seeing a plateau in cost-of-living; Eastern capitals like Sofia, Zagreb, and Budapest are all seeing rising rental and living costs.
• Average monthly living costs across capitals rose 3.6%, compared with 5% in 2024, signaling some breathing room after two years of increases.

London, November 4, 2025 – A slowdown in cost increases across Western Europe, alongside rising prices in parts of Eastern Europe, is creating a more varied picture of affordability for expats and remote workers, according to bunq’s latest findings from the Working Abroad Index 2025. With the global digital nomad community now exceeding 40 million, borderless living has become an established part of modern work life.

London records biggest coworking cost drop in Europe

The annual index tracks the cost of living across 27 European cities, accounting for housing, transport, utilities, groceries, and coworking spaces. In 2025, London recorded the largest coworking price drop in Europe (-28.7%), followed by Helsinki (-27.3%), Paris (-24.5%) and Dublin (-24.4%), signalling a major correction in flexible workspace prices across Western capitals. While these cities remain generally expensive, the drop marks a potential turning point in London’s cost landscape, improving its appeal as a more accessible hub for digital nomads, startups, and international talent.

London’s living costs ease as Europe’s shows early signs of stabilization 

Digital nomads are beginning to see slower increases in everyday expenses across Western Europe, marking the first signs of price stabilisation. Average living costs across European capitals rose 3.6% year-on-year, and down from 5% in 2024. 

In London, overall living costs fell slightly compared to 2024, reaching £2,830 (€3,215 −0.3%). The city also recorded one of the largest drops in utility prices in Western Europe, down 13.9%, while grocery costs fell by 6.7%. Although average rent rose by 2.6%, from £1,985 (€2,255) in 2024 to £2,036 (€2,314) in 2025, this represents a slower rate of increase than in 2024. These changes indicate a possible sign of relative stability in London’s cost landscape, with easing expenses in areas like energy and food helping to balance persistently high rent and transport prices.

Helsinki experienced the largest overall decrease in living costs among European capitals, down 2.2% year-on-year, while Dublin saw smaller shifts in overall living costs but recorded some of the most significant drops in utilities (−12%) and transport costs (−9.7%).

A narrowing East-West cost divide creates a potential new paradigm

Although London remains one of Europe’s most expensive capitals, early signs suggest a narrowing of the East–West cost divide. While London is now showing signs of stabilisation, several Central and Eastern European cities are seeing increases in everyday expenses.

Living costs have jumped 12.5% in Sofia, 9.5% in Zagreb, and 8.9% in Budapest. Coinciding with this trend is an even steeper increase in rent costs: 20.9% in Sofia, 11.8% in Zagreb, and 11.2% in Budapest. Despite these increases, the affordability gap remains significant: a central one-bedroom apartment in Sofia  (£547/€622) still costs less than a quarter of London’s average (£2,316/€2,632).

Emerging mid-tier cities gaining ground

Meanwhile, Southern and Baltic cities are consolidating their position as attractive bases for long-stay professionals and remote workers. Athens (£964/€1,095) remains among the most affordable capitals in Europe, recording a slight -0.9% decrease in average living costs since 2024. Vilnius (£1,013/€1,151; +0.3%), Riga (£918/€1,044; +4%), Tallinn (£1,116/€1,268; +6.3%), and Nicosia (£1,037/€1,179; +5.6%) all recorded modest year-on-year increases while remaining below the Western European average. Strong connectivity and quality of life in these mid-size cities can continue to attract long-stay professionals and remote workers.

Joe Wilson, Chief Evangelist at bunq: “Living abroad should fit your life, not the other way around. Our research shows where your money goes, so expats can make choices that match their lifestyle: spend smarter, enjoy more, and focus on the experiences that matter.”

_{About the research}

_{For the study, the average costs for rent, groceries (monthly shopping), and utilities (electricity, heating, air conditioning, water, garbage, mobile internet, and home internet) were determined from the Numbeo database for the years 2024 and 2025. In total, prices for 27 EU capitals and London were taken into account. For rental prices, one-bedroom apartments inside and outside the city center were considered, and the average was calculated. Electricity and other utilities are based on the costs for an 85m2 apartment. For the costs of workspaces, the average prices for co-working spaces/office space were determined. The cheapest offers for co-working spaces and private offices were checked on the Regus and SpaceWorks websites, and the average was then calculated. For six cities, no offers could be found for 2024, so no comparison with 2025 was possible. The costs for public transportation are taken from the official websites of the respective transportation companies—any discounts and special rates were not taken into account. For Germany, the Deutschland-Ticket was chosen instead of the BVG monthly ticket. The fare zones are all located near the city. The costs for mobile internet include calls and 10 GB, the internet speed is at least 60 megabits per second, and unlimited data.}

_{Euro-to-pound conversions were calculated using the European Central Bank’s converter on 30.10.2025.}