According to new research by housing platform HousingAnywhere shows an upward trend for rental prices in Q4 compared to the year before for all their major European student destinations.
The HousingAnywhere European Rent Index shows rental data from furnished private rooms, studios and one-bedroom apartments in Barcelona, Berlin, Brussels, Madrid, Milan, Rotterdam, and Vienna. The increase in rental prices follows a rising shortage of available rental properties, increasing competition among international students and young professionals to find proper housing, and more premium apartments being offered at higher prices.
All markets saw an upward trend in Q4 of the past year for rental prices for single rooms, studios, and one-bedroom apartments alike. It was most notable for one-bedroom rental apartments were the cities of Madrid, with a year-over-year increase of 6.27 %, Barcelona with an 8.7% increase and Vienna coming in last with a total increase of only 0.68%. Madrid and Barcelona currently still rank among the cities with the lowest overall rental prices, with Milan ranking among the highest, illustrating that markets across Europe are leveling in rental prices, although the differences still remain considerable. Vienna forms the exception here, showing relatively low rental prices as well as the lowest increase across Europe.
Djordy Seelmann, CEO at HousingAnywhere comments, "Rental demand is currently outstripping supply in many popular cities for internationals. The increasing number of international students and young professionals, often looking for similar accommodation, has resulted in a lack of affordable housing for these groups. These times call for better coordination between supply and demand, so internationals can more easily find fitting housing, and landlords can get the maximum return from their property. To make all stakeholders aware of these developments, we have decided to launch the HousingAnywhere European Rent Report on a quarterly basis."
Although some of the shortfalls in supply will be met by new housing provided by property developers in the coming years, it's very likely shortages will remain in those destinations that are particularly popular. Given that the rents are likely to keep rising, more supply is needed to prevent price bubbles that make it impossible for students and young professionals to find suitable housing abroad in the central regions of cities and in the vicinity of universities.
"It is important that cities take a long-term view of these market developments and act," Seelmann says. "By developing more accommodation in central city areas, the rising demand for rooms, studios, and apartments can be met. Then the market will become more balanced, with sufficient and affordable housing."