Rental Market State of Play: August 2023

Here we present an in-depth rental market overview for London, Paris, and Amsterdam, examining recent developments and dynamics. The article focuses on London’s changing rental prospects, Amsterdam’s increasingly competitive market leading to rising rental prices, and Paris’ preparation for the Olympics and its impact on rental demand. We also provide a detailed look at average monthly rents for different property types in these cities, highlighting August’s most notable trends.

London Rental Market Latest

London cityscape view across the Thames
London, UK

It appears the tide may be turning in terms of rental prospects in London. New analysis from agent Chestertons found there were 39% more rental properties coming onto the market in July 2023 when compared to the same month last year. It also found there were 5% fewer renters registering their interest. Despite less competition, demand in the capital remains strong. Chestertons reports that interest is high in St. John’s Wood, South Kensington, Islington, Canary Wharf, Hampstead, Clapham and Fulham. There is a lag between better supply and rental prices, however. The latest HomeLet data shows rents in Greater London have risen for three consecutive months. In July alone, the capital’s rents increased by 1.5% to a new average of £2,109 per calendar month (pcm).

Average Monthly Rents in London

Unusually for London, it is the smallest and usually the most popular rental property that has fallen in value during the last four weeks. A one-bedroom city centre apartment has dipped marginally, falling from €2,435.60 pcm to €2,430.95 pcm. The other three property types Klippa tracks have all risen in value, one markedly so. A three-bedroom apartment in the city centre has jumped in cost from €4,479.85 pcm to €4,634.17. Elsewhere, a three-bedroom apartment in London’s suburbs has risen from €2,904.25 pcm to €2,976.56, while a one-bedroom apartment in the city suburbs is now €1,740.77 pcm, up from €1,706.00 pcm.

Amsterdam Rental Market Latest

Amsterdam street view along canal with parked bicycles
Amsterdam, Netherlands

The state of the Dutch rental market has been laid bare thanks to a new set of figures from rental housing platform Pararius. Its analysis shows the ultra-competitive market among tenants has resulted in rental prices rising by an average of 5% to 8% in the second quarter of 2023. Amsterdam has registered the most significant rental price rises of all the country’s major cities, with rents increasing by an average of 7.6% over the past 12 months. The increase in rental prices corresponds with a 27% fall in the number of rental homes placed on the market in the second quarter of 2023, compared to the same period in 2022.

Average Monthly Rents in Amsterdam

There were more rental value increases in the month of August, following the increases seen in July. Now it costs €40 more a month to rent a one-bedroom apartment in Amsterdam’s centre, up from €1,723.71 pcm to €1,763.33 pcm. There were more marginal rent rises attached to three-bedroom city centre apartments, rising from €2,692.93 pcm to €2,706.27 pcm. A three-bedroom apartment in the city’s suburbs now costs €2,049.13 pcm, up from €2,032.50 pcm. Only a one-bedroom apartment in the city’s suburbs was cheaper to rent in the last four weeks, down from €1,389.03 pcm to €1,378.70 pcm.

Paris Rental Market Latest

Street in Paris at night with cafes and a guests at tables
Paris, France

The countdown is now on to the Paris Olympics, when billions of eyes will be on the French capital city. As well as a sense of excitement among the sporting elite, Paris real estate agents are gearing up for possibly the busiest period of their lives. There’s already a concerted push for people to reserve rental apartments ahead of the opening ceremony on 26th July 2024. The demand will squeeze the availability open to professional relocators, so enquiries should be made now for 2024 availability. Those in the market for city centre properties may also be interested in Paris Rental’s top areas for those relocating for work. They comprise Le Marais (3rd & 4th arrondissements), La Défense Business District, the 16th arrondissement and the 15th arrondissement.

Average Monthly Rents in Paris

After July saw every Paris property type that Klippa monitors rise in value, it was a mixed bag in August. The cost to rent a three-bedroom apartment in the Paris suburbs broke through the €2,000 pcm barrier, rising from €1,985.95 to €2,026.32. It also became more expensive to rent a one-bedroom apartment in the centre, up from €1,276.67 pcm to €1,285.11 pcm. Two property types did become a little cheaper. A one-bedroom apartment in the Paris suburbs is down from €952.09 pcm to €939.78 pcm, while a three-bedroom city centre apartment is now less expensive at €2,880.72 pcm, dropping from €2,853.15 pcm.

Need to Secure a Rental 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, 24th August 2023

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