Dublin is fifth most expensive capital in Europe for living costs

City is 13th most affordable when average wages are accounted for, report finds

The River Liffey and the Halpenny Bridge in Dublin City centre. Photograph: Bryan O Brien
The River Liffey and the Halpenny Bridge in Dublin City centre. Photograph: Bryan O Brien

Dublin is the fifth most expensive capital city in Europe, but ranks far better for affordability when average wages are taken into account, according to the findings of a new report.

The report, compiled by financial data group Tradingpedia, provides a breakdown of essential expenses such as rent, food, transportation, personal care and entertainment in 37 European capitals.

It attempts to present a clear picture of affordability and standards of living across the continent by comparing these data points with monthly income levels.

The report ranks Dublin fifth most expensive in terms of the cost of basic monthly expenses at €2,329. This places the Irish capital among the most expensive cities in Europe, trailing only Reykjavík, London, Amsterdam, and Bern.

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When basic expenses are compared to average monthly salaries, a single person in Dublin spends about 68.3 per cent of the average income of €3,412 on essential costs.

Despite high prices, this “surprisingly” makes Dublin one of the more affordable European capitals, ranking 13th out of 37. “Among major Western European capitals, Dublin offers better affordability despite high living costs,” the report says.

When considering families of two adults and two children, affordability in Dublin improves further.

Basic expenses account for just 52.4 per cent of the average household income, leaving families with €3,249 to “save or spend as they choose”. Under this criteria, Dublin rises to ninth place among European capitals.

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The report ranks Dublin among the most affordable European capitals for basic food expenses, with a monthly grocery basket costing €152, or 4.5 per cent of the average monthly income.

It must be cautioned that this aspect of the report counts the cost of just nine low cost items in a grocery basket, including a piece of chicken, bread, cheese, milk, eggs, fruit, and vegetables.

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Basic expenses consume 68.3 per cent of the average salary in Dublin, compared to 78 per cent in London and 76 per cent in Paris, making it “one of the more budget-friendly cities” within this group.

Compared to other European capitals, Dublin’s affordability ratio of 68.3 per cent places it just below cities like Zagreb (68.4 per cent) and Vilnius (70.9 per cent), and above Amsterdam (66 per cent) and Stockholm (62 per cent).

While many Eastern European capitals such as Warsaw (127.4 per cent) and Tirana (121.6 per cent) experience significantly higher cost-to-income burdens, Dublin aligns more closely with mid-tier Western European cities like Berlin (60 per cent) and Vienna (59 per cent).

“This middle position reflects Dublin’s balance of relatively high living costs offset by stronger salaries, highlighting the need to monitor inflation and wage growth carefully to maintain its competitive standard of living in Europe’s evolving urban landscape,” the report adds.

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Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter