RENTAL MARKET TRENDS IN EUROPE

View of flags of the European Community

Ultimo aggiornamento 15 Maggio 2024 da VetrinaFacile.it & Redazione

Rental market trends in Europe

Over five billion euros have been invested in Italy for rental fees, recording a ten percent increase over five years, excluding contributions destined for short-term rentals. This data reflects a growing trend in rentals, an increasingly widespread phenomenon even in a country traditionally oriented towards property ownership. At the European level, the numbers are even more significant, indicating an approach that extends beyond the economic aspect and also represents a lifestyle.

The rise of renting in Europe

In the modern European landscape, with the exception of Germany, there’s a noticeable revival in the rental sector. In Italy specifically, there has been an uptick in the proportion of families living in rented accommodations, rising from 23% in 2000 to 26% presently, and this trend seems likely to continue. Across key European Union countries such as the United Kingdom, France, Germany, Italy, and Spain, rental prices have surged by an average of 41% over the last decade. By 2023, residential rents saw an average increase of 5%, reaching an average of 18.30 euros per square meter per month.

In the last quarter of 2023, the typical cost for renting a two-bedroom apartment measuring 60 square meters in major European capitals reached 26 euros per month.

Studios below fifty square meters marked an average rent of 1,150 euros per month, with a 7.1% increase. The monthly cost of a single room for students recorded a 5.1% increase, reaching 700 euros per month towards the end of the year.

Rental market trends in Europe

The choice to opt for a rented accommodation is gaining more and more ground, but what are the reasons behind this growing trend? According to a statistical survey in 2023, the increase in house prices and mortgage costs has contributed to strengthening the role of rent as a more accessible and less binding short-term solution. This phenomenon is highlighted by the fact that, in Europe, there is a growing demand for rental homes, but an offer that fails to adequately satisfy it, both in terms of quantity and quality, thus leading to an expected increase in rental fees.

What is the situation in Italy?

Here too, the rental market has shown dynamism that has overcome contingent challenges such as the reduction in purchasing power and the erosion of savings. However, there are still critical issues related to the rise in rents, which require policies and incentives for the development of sustainable rental housing.

The increase in mortgage costs plays a significant role in this trend: rising house prices and mortgages are pushing more and more people towards renting, especially young people, new families, and singles under 40. This demand requires high-quality accommodations, either new or refurbished, with condominium services that improve the quality of life and social inclusion, as well as environmental sustainability.

What is the rental supply like in Italy?

Currently, there is a shortage of available properties, especially in large cities, due to the lack of new constructions or renovations suitable for this purpose. This scarcity has led to a significant increase in rental fees. However, investors are starting to look at the Build to Rent (BTR) or Private Rental Sector (PRS) market as a potential profitable and sustainable investment opportunity, but specific legal and tax regulations are needed to support this sector in Italy.

Rental fee trends in Europe

Rental market trends in Europe: significant disparities persist in rental fees among different European nations, with Italy at the forefront. In Italy, while house prices show a decrease compared to ten years ago, rental fees are increasing. A similar situation is observed in Spain, where rental fees have undergone an impressive increase, while house sale prices have grown but less than rentals. Germany also shows an imbalance, with a considerable increase in sale prices and an increase in rental fees over the last ten years. In the United Kingdom, on the other hand, there is a greater balance, with a small increase in both the average sale price and rent.

Among the major European cities, Madrid recorded the highest increase in rental fees in 2023, followed by Lisbon, Milan, Vienna, and Rome. Berlin saw a slight increase in average rents, while Amsterdam recorded a small decrease.

Amsterdam remains the most expensive city in terms of rents, with an average monthly rent of 2,050 euros for a two-room apartment; even the cost of a single room for students is increasing, reaching 930 euros per month. Berlin, on the other hand, has seen a significant drop in average rents for two-room apartments, settling at around 1,555 euros per month.

Trends in residential renting in Italy

In 2023, the number of new rental contracts in Italy saw a significant increase compared to the previous year. This generated an additional volume of rents, involving a residential area of ​​over 90 million square meters. Rental properties have an average size of about 85 square meters and an average monthly rent of about 570 euros. Demand continues to focus mainly on the country’s major urban centers, as evidenced by price trends. The highest level of average annual rent is found in Milan, at 176 euros per square meter per year, followed by Rome with 151 euros, Bologna with around 120 euros, Naples with just over 100 euros, and Genoa with 85 euros.

Forecasts for 2024-2025 indicate a consolidation of the level reached: a slight increase in rental fees is expected, which on a national average level should be around 1.4%, bringing the average reference value to 80 euros per square meter per year.

As for the types of contracts, at the moment, the agreed regime represents just over a quarter of new contracts, while more than half is represented by the ordinary long-term contract. Facilitated contracts for students, despite the continuous increase in the number of out-of-town students enrolled in the country’s major universities, still account for less than five percent of the total.

Per la vendita & locazione del tuo immobile chatta quiprenota una telefonata per essere ricontattato.

Rental Market Trends in Europe. VetrinaFacile.it. Scopri tutti i nostri servizi immobiliari

CHI SIAMOSERVIZI

☎️ CHIAMA🟢 CHATTA@ SCRIVI

VetrinaFacile.it il Tuo Braccio Destro nella Gestione Immobiliare.

⬇️ LINK UTILI

VALUTA GRATIS

PUBBLICA GRATIS

NOTIZIE DI VENDITA

BLOG IMMOBILIARE

CIRCUITO IMMOBILIARE

GUEST-POST (PROMUOVITI)


Vendi il tuo immobile? Chatta qui o scrivici una e-mail per maggiori informazioni.