Global Utility Costs: Europe Dominates Most Expensive Cities for Household Bills

The cost of essential living expenses, particularly utility bills, demonstrates significant global disparities, profoundly influencing household budgets and a city’s overall economic competitiveness. A comprehensive analysis by Deutsche Bank, detailed in its ‘Mapping the World’s Prices’ report for 2025, reveals striking differences in basic utility costs across 67 cities worldwide, including 28 European hubs. This report, which encompasses electricity, heating, cooling, water, and garbage services for an 85m² apartment, underscores Europe’s prominence at the higher end of the cost spectrum, with the continent hosting a substantial majority of the world’s most expensive cities for these fundamental services.

• The Deutsche Bank ‘Mapping the World’s Prices’ 2025 report analyzes utility costs across 67 global cities.
• Europe dominates the list of most expensive cities for basic utilities.
• Monthly utility costs globally range from €24 in Cairo to €370 in Munich.
• Germany, particularly Munich, Frankfurt, and Berlin, is identified as the most expensive country for utilities.
• Between 2020 and 2025, many European cities saw significant utility cost increases, with Stockholm experiencing a 176% rise.
• The burden of utility costs as a percentage of income varies widely, from 2.6% in Montreal to 25.9% in Manila.

Europe’s dominance in the top ranks for utility costs is pronounced, with nearly all of the top 20 most expensive cities located within its borders. Globally, monthly basic utility costs range dramatically from a mere €24 in Cairo to a substantial €370 in Munich. Within Europe, Istanbul offers the most affordable utilities at €68, while Helsinki leads in affordability within the European Union at €115. Conversely, Germany stands out as the most expensive country for basic utilities, with Munich leading the charge. Frankfurt and Berlin also feature prominently, making the national average notably high; residents in these major German cities pay approximately €339 and €333 respectively.

Beyond Germany, Edinburgh ranks as the second most expensive European city for utility bills, with residents facing average costs of €346. Other UK cities also present high utility burdens, with London ranking seventh globally at €295 and Birmingham eleventh at €270. The top tier of expensive European cities further includes Warsaw (€327), Vienna (€304), Prague (€286), Amsterdam (€275), and Oslo (€271). Notably, only two non-European cities—Tel Aviv (€245) and Hong Kong (€211)—appear within the global top 20 for utility expenses, underscoring Europe’s concentrated high-cost environment.

Global & Regional Cost Dynamics

The landscape of utility costs shifts considerably outside Northern and Western Europe. Following Istanbul and Helsinki, cities like Budapest and Lisbon offer more economical utility rates, both averaging €135. Barcelona (€170) and Madrid (€180) also present lower costs compared to their northern counterparts. Cities such as Athens (€197) and Copenhagen (€182) maintain average basic utility bills below €200, while Italian cities like Milan (€200) and Rome (€202) hover around the €200 mark. This regional variation underscores a general trend: higher utility costs typically characterize Northern and Western Europe, whereas Central, Eastern, and parts of Southern Europe generally offer more affordable rates.

In a broader global context, San Francisco emerges as the most expensive US city on the list, with utility costs averaging €202. New York records an average of €181, though other US cities fall in between these figures. Asian and North American major cities often present significantly lower utility costs compared to many European counterparts; Tokyo averages €151, Toronto €107, and Beijing an exceptionally low €52.

The Shifting Cost Landscape (2020-2025)

Over the five-year period from 2020 to 2025, many European cities have experienced substantial increases in monthly basic utility costs, measured in euros. Stockholm saw the most dramatic rise at 176%, closely followed by Oslo at 133%. Other notable increases exceeding 90% include Warsaw (112%), Brussels (97%), Birmingham (96%), and Edinburgh (93%). Even German cities, already contending with Europe’s highest bills, saw increases of around 50%. It is important to note that for non-eurozone cities, a portion of these increases may be attributed to exchange rate fluctuations. Conversely, Copenhagen (-7%) and Budapest (-6%) were the only two European cities to experience a decline in utility costs during this period in euro terms.

Utilities as a Percentage of Income

The true burden of utility costs is best understood when viewed as a percentage of average net salaries. This metric highlights significant disparities in affordability across Europe. Residents in Geneva and Zurich spend a minimal 3.2% and 3.3% of their net salaries on basic utilities, respectively, reflecting high earning capacities. In stark contrast, Athens sees 18.8% of average net salaries allocated to utilities, closely followed by Warsaw at 17.6%. Globally, Montreal registers the lowest share at 2.6%, while Manila records the highest at 25.9%, indicating that over a quarter of income in the latter goes towards basic utilities.

In Europe, several countries report utility costs consuming around 9–10% of average net salaries. These figures are not solely determined by absolute utility prices but are heavily influenced by prevailing income levels. Swiss cities, for instance, lead Europe in average monthly net salaries, with Geneva at €7,307 and Zurich at €7,127, contributing to their low utility burden ratios. Conversely, Istanbul has the lowest average salary at €855, and within the EU, Athens ranks lowest at €1,044, which significantly exacerbates the impact of utility costs on household budgets. High-income cities in Northern and Western Europe, such as Luxembourg, Amsterdam, Copenhagen, and Frankfurt, report average net salaries above €4,000, which helps mitigate the impact of higher absolute utility costs on residents’ disposable income. The underlying reasons for these price differences are multifaceted, encompassing variations in energy sources, national pricing strategies, government subsidies, and support measures, alongside significant geopolitical influences such as the conflict in Ukraine that have reshaped energy markets across Europe.