rents are flatlining

Rents Flatlining in European Cities


Rents in major European cities are continuing to level out, even in Barcelona, Berlin and Brussels which have recorded the steepest climb in rental prices year on year, the latest data shows.

This trend is across most European cities, but Amsterdam and Munich are bucking the trend with rents rising fast, according to the international rental index from Housing Anywhere covering the third quarter of 2019.

It says that while a rental ceiling seems to have been reached in the past quarter, the slower growing world economy and political uncertainties, such as the looming Brexit deadline, have made investors on the real estate market anxious for new investments, which in turn, is driving scarcity and pushing rents up even further.

‘Lack of supply is a factor predominantly in the lower price segments, those particularly sought after by students and young professionals,’ said Djordy Seelmann, chief executive officer of Housing Anywhere.

‘While some municipalities are deploying measures to keep rents from rising even further, such as rental caps, they often overlook the real problem which is the lack of supply,’ Seelmann added.

Across all of the cities covered by the index, the biggest year on year rise was in Barcelona, Apartment rents increased by 8.55%, studios by 6.75%, and private rooms by 7.8%. But rents have been levelling out in the city since the fourth quarter of 2018.

The next biggest rise in rents was in Berlin with apartments up by 7.41%, studios by 7.09%, and private rooms by 7.76%. Again, as is the case with Barcelona, these year over year results do not reflect the current trend of prices levelling out, with one notable exception as rents for studios have risen significantly in the past quarter by 5%.

In Brussels rents for apartments rose by 5.42%, studios by 6.81% and private rooms by 7.33%. Once again, this year over year increase was mainly fuelled by climbing rent in the last quarter of 2018 and, at present rents are levelling out.

Political inertia on the matter of boosting the development of affordable housing is not alleviating the housing problem in European cities. Across Spain and in Berlin especially, initiatives to steer the real estate sector toward new investments have come to a halt due to political indecisiveness. Despite initiatives aimed at putting an end to the spiralling prices, estate agencies are warning that the lack of rental properties on offer is only aggravating the situation,’ said Seelmann.

Eleven new cities have now been added to the index; London, Amsterdam, Munich, Stockholm, Copenhagen, Helsinki, Valencia, Florence, Turin, Utrecht, and The Hague. Of these cities, for which a number are known to be very expensive in terms of average rent, Amsterdam and Munich show the biggest increase in rents.

The report says that this is not a surprise, considering that it is a continuation of a visible trend over the past few years. Amsterdam and Munich remain as popular as ever, and current developments, such as the uncertainty surrounding Brexit, are increasing the scarcity in supply even further.

Other already very expensive European cities, such as London, Stockholm, Helsinki, and Copenhagen see their rents increase at more or less the same rate as in the past year. The report concludes that while it is still too early to tell what effect a future Brexit will have on rents in London, a rental ceiling has not yet been reached in the other cities, and will probably not be reached as long as their popularity remains as it is.


Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • The Hideaways Club
  • Monaco Real Estates
  • RDO
  • Rosemont Consulting
  • St Francis Links
  • Unique Home Stays
  • Yoo
  • Worldwide Dream Villas
  • Cyan International Properties
  • Enigma Yachts Limited
  • Cornerstone Tax Advisors
  • Lida Cucina
  • Pedini London
  • Alexander James
  • Wings
  • Moore Stephen
  • Ibiza Transit Express
  • Oyster Yachts
  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Smart Currency Exchange
  • Prestige Architects
  • Worldwide Property
  • Panorama
  • Dimora
  • Dominic McKenzie Architects
  • The Coastal House
  • Chamonix Ski Chalet
  • Luxe Caribbean Properties
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • London Fractions
  • Page Architects
  • Millgate
  • Jersey Finance
  • guernsey-relocations-logo
  • viberts-logo
  • b-williams-management
  • kpmg-logo
  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Experience Invest
  • Move 2 Gozo
  • Deborah Garth
  • Extex
  • You home
  • Ra Shaw Designs
  • Caudwell Collection
  • eastwood private client
  • accanto-interiors
  • Fritz Hansen
  • capital-rise
  • jarrods-staircase
  • neil-davies-logo
  • Tina Shone Group
  • Taplow riverside
  • Aimo
  • ns-ceramics-logo
  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
  • Douglas Graneto
  • Strutt & Parker
  • wilsons
  • MJC Associates
  • plainspace
  • Fine & Country
  • Bramble Ski
  • Page Architects
  • Penthouse queen
  • Sarco_Affiliate_Logo
  • taylor wimpey
  • cooper-gardner
  • M Design Architects
  • codan
  • Lovells
  • London DE
  • Prime Lands Group
  • Bellegarde Estates
  • Sinclair
  • Pippa Paton
  • Ecole d'Humanite
  • Miller
  • Benedek Lewin
  • Inspired Villages
  • Huelin Homes
  • Gaudin
  • Lovells Property
  • Racecourse Lodge Logo
  • Paseo
  • Lemay + Escobar
  • Octagon
  • Locate Isle of Man
  • Newlands of Stow
  • Hawksford
  • Holdun
  • St George's International School
  • Schule Schloss Salem
  • AR Architecture
  • lazaro
  • Sella Concept
  • Blakstad

Enter your dream destination