This month, the Financial Times announced a ‘global rental squeeze’ was taking place – a worldwide landscape where properties are reserved within hours of being listed and tenants are making offers well over the advertised rent in order to see off competition.
Klippa Relocation looks beyond the newspaper headlines to see whether the reported hysteria is affecting rental market values* in London, Amsterdam and Paris.
London Rental Market Latest
Detrimental taxation changes aimed squarely at landlords and booming house prices have finally kicked in, with many buy-to-let landlords selling up, cashing in and leaving London with an extreme lack of rental stock. The Evening Standard reported the number of properties available to rent in London last month was down 44% on 2021, and 25% below levels seen before the pandemic. It’s a set of statistics that led Rightmove to claim that now is ‘the most competitive rental market ever recorded’.
Average Monthly Rents in London
While there continues to be more tenants looking for property to rent in London than there are available homes, rents have actually cooled very slightly – in contrast to what the media may have you believe. A one-bedroom city centre apartment now costs €2,076.47 per month – a monthly saving of almost €30 when compared to March. Move into London’s suburbs and tenants can now secure a one-bedroom apartment for €1,516.30 per month, a slight dip in price too. When it comes to larger rental properties, expect to pay €3,957.64 per month for three bedrooms in London’s city centre (the same property cost more than €4,000 to rent in March), while three-bedrooms outside of the city centre will cost tenants €2,550.49 per month – a €20 monthly saving.
Amsterdam Rental Market Latest
With the first quarter of 2022 complete, property number crunchers have been able to assess the rental market performance in Europe’s top cities. HousingAnywhere found that it was Amsterdam that had enjoyed runaway success. The Netherlands’ capital posted almost double the average quarter-on-quarter rental value rises. Values have risen 7.7% for private rooms, 9.2% for studios and 10.8% for apartments in the first quarter of 2022, when compared to the last quarter of 2021.
Average Monthly Rents in Amsterdam
April has been another stable month for rental values in Amsterdam, with prices fluctuating by no more than €28 per month across the most popular property types. A one-bedroom apartment in the city centre is now €1,574.37 per month – just €1 more than in March. Expect to pay €1,286.59 per month for a one-bedroom apartment outside of Amsterdam’s centre – the property type and location that’s seen the biggest month-on-month rental value increase. A three-bedroom property in the city is only €10 more now than four weeks ago, at €2,718.74 per month, while three bedrooms outside of the centre attract a monthly rent of €2,024.12 – a €1 rise over a four-week period.
Paris Rental Market Latest
According to newly published data analysis by HousingAnywhere, Paris has pipped London to become the most expensive city in which to rent a small property. The French capital was found to be the most expensive city for tenants renting a private room or a one-bedroom apartment, with the property platform reporting an average rental property price of €1,978 per month. HousingAnywhere found London to be the second most expensive city for small rental spaces, averaging €1,940 pcm, while Amsterdam was third at €1,818.
Average Monthly Rents in Paris
The latest report from the Economist Intelligence Unit rates Paris as the second-most costly city
Could the ‘race for space’ in quieter areas have gripped Paris? A three-bedroom apartment outside of the city centre was the only property type in Klippa’s analysis to cost more to rent in April than it did in March. Expect to now pay€1,979.20 for a three-bedroom apartment in a Paris suburb – €159 more than the previous month. There were small rental value decreases elsewhere, with a three-bedroom inner city apartment now attracting a monthly rent of €2,721.15 – almost €30 less than in March. The monthly cost of a one-bedroom apartment in the city centre has dropped to €1,274.23, while the same property in a Paris suburb will set tenants back €917.30 per month.
Need to Secure a Property?
Klippa Relocation has established agents working across London, Amsterdam and Paris. We have enviable relationships with each city’s leading real estate agents and property finders, so please get in touch if you need help with the local rental market.
* Average monthly rental figures, expressed in Euros & taken from Numbeo, 28th April 2022