An updated analysis of rental trends in 28 European cities finds that housing prices jumped again in Q2 2024. The International Rent Index by City is produced quarterly by rental platform HousingAnywhere, and it finds that “price increases regained their momentum” in the second quarter of 2024.
Overall, European rental rates rose 4.3% year-over-year during the quarter, which compares to an overall gain of 3.8% in the previous quarter. Room rates rose by 3.5% in Q2, apartments by 4.2%, and studio accommodations by 5.4%.
“We are right at the start of the peak season for mobile students and young professionals looking for their new home before the start of the new semester after the summer, and we see rent prices picking up pace. This means that those looking for accommodation will have to start their search early and accept some compromises,” said HousingAnywhere CEO Djordy Seelmann. “Meanwhile, with the recent elections across several European countries, we will have to wait and see if new administrations consider the expansion of the residential housing stock a sensible antidote to the pressing affordability challenge.”
The 28 cities included in the index are Amsterdam, Athens, Barcelona, Berlin, Bologna, Brussels, Budapest, Düsseldorf, Florence, Frankfurt, Hamburg, Helsinki, Köln, Lisbon, Madrid, Milan, Munich, Paris, Porto, Prague, Rome, Rotterdam, Stuttgart, The Hague, Turin, Utrecht, Valencia, and Vienna. The index collects pricing data for 79,043 properties that were listed and received interest from potential tenants on the HousingAnywhere platform in the past year.
As is usually the case in broad regional surveys, the HousingAnywhere index finds significant variations in price movement across Europe. The German and Dutch cities in the index sample remain among the most expensive on the continent, but “major Southern European cities, especially those in Italy and Spain, are gaining ground.”
Rome, for example, recorded the highest price increases for rooms (19.2% year-over-year), and Madrid the largest jump for apartments (20%).
Room rates range from highs of €1,007 or €855 in Amsterdam and Hamburg, respectively, to more affordable locations such as Athens, Valencia, or Budapest where monthly rates are reliably below €400.
Studio spaces, meanwhile, are in shorter supply and this, the report concludes, leads to more price volatility (and more rapid price gains) in this category.
Significant rent increases were also reported for apartment housing in a number of cities, notably Madrid (+20%) and The Hague (+18%), with prices ranging €1,500 to more than €2,000 in a number of cities. HousingAnywhere adds that, “Out of all the apartments analyzed, 57% were one-bedroom apartments, 31% were two-bedroom apartments, and 12% were three-bedroom apartments.”
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