2022 drew to a close with a similar theme across London, Amsterdam, and Paris, with rents continuing to rise and a lack of available properties to rent. Klippa takes its final overview for 2022 of the rental markets in London, Amsterdam, and Paris.
London Rental Market Latest
Rents continue to climb in the English capital. In a report on unaffordability in London’s lettings market, The Guardian quoted statistics from agent Savills. According to the report, rent price increases in the first nine months of 2022 broke records, increasing by 13.7%. It cited the return of international students and young professionals to London as key factors, but also highlighted a reoccurring lack of rental properties as something that continues to underpin sustained rental growth. The latest HomeLet Rental Index revealed rents in Greater London continued to rise late into 2022. In fact, rents rose 1.1% between October 2022 and November 2022. This +1.1% monthly rise means the average Greater London monthly rent has now topped £2,000.
Average Monthly Rents in London
According to Numbeo, only a one-bedroom apartment in London’s city centre is cheaper to rent now when compared to Klippa’s last report. Sadly, it’s only one euro cheaper at €2,226.55 pcm. The other properties that Klippa tracks are all more expensive. The biggest rental rise is attached to a three-bedroom apartment outside of London’s centre – up from €2,622.24 pcm to €2,681.67 pcm. A one-bedroom apartment in London’s suburbs now costs €30 more per month, with a new rent of €1,638.61 pcm. A three-bedroom apartment in the city centre is up from €3,740.85 pcm to €3,774.05 pcm.
Amsterdam Rental Market Latest
Like many cities in Europe, increasing energy prices and soaring inflation are weakening demand for properties among buyers. In Amsterdam, investment platform BRXS suggests the current conditions are conducive to property investment. It highlights that there is still a shortage of homes and a lack of housebuilding. Couple this with a forecast from economists at ING, who predict that Dutch property prices will be 2.5% cheaper in 2023, and investors could be tempted. Despite this positivity, landlords will have one eye on 2024 thanks to a government announcement in December 2022. The Housing Minister declared that some rents in Amsterdam and across the Netherlands will be subject to a new rent cap. The rent limit will affect more than 300,000 homes, with rents indexed annually to inflation. As a result, properties subject to the cap will have a maximum monthly rent of approximately €1,100 – an average reduction of €190 per month.
Average Monthly Rents in Amsterdam
For the second consecutive month, rents for one-bedroom apartments in Amsterdam have fallen moderately. The cost to rent a one-bedroom apartment in Amsterdam’s city centre has dropped from €1,708.14 pcm to €1,682.22 pcm – a saving of €26. Move to the city’s suburbs, and a one-bedroom apartment also costs €26 less to rent now, compared to last month, now at €1,442.78 pcm. There’s also better value for money when looking at three-bedroom apartments in Amsterdam. A three-bedroom apartment in Amsterdam’s city centre has fallen from €2,870.55 pcm to €2,793.48 pcm. A three-bedroom apartment in the suburbs is cheaper too – down from €2,093.93 pcm to €2,060.11 pcm.
Paris Rental Market Latest
Prime rental properties continue to be a hot prospect in the city’s property market. Real estate agent, Vingt Paris, describes the upper end of the private rental sector as ‘competitive’, with ‘unprecedented tenant demand and limited stock resulting in a soaring rental market.’ While high offers are frequent, the agent comments that long-term suitability is a crucial part of today’s tenant-find process. Tenants will soon be vying for a smaller pool of Paris rentals, as new energy standards come into effect on 1st January 2023. From this date, landlords whose properties have an energy efficiency rating of G – and that also consume over 450kWH per square metre per year – will no longer be able to rent the property out. This rule will extend to all G-rated properties from 2025, all F-rated properties from 2028, and all E-rated properties from 2034.
Average Monthly Rents in Paris
There was continuing stability in the Paris rental market during December, with very minimal price fluctuations. Two property types became marginally more expensive to rent, and two others became cheaper by a few euros. Rent rises were attached to three-bedroom properties in Paris’s suburbs, which have increased by €5 to €1,948.11 pcm. It’s also more costly to rent a one-bedroom city centre apartment – up from €1,276.09 pcm to €1,289.00 pcm. Three-bedroom city center apartments have dropped €8 per month in the last four weeks, now costing €2,850.34 pcm. A one-bedroom apartment in the Paris suburbs has also dropped – from €941.82 pcm to €936.44 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, 28th December 2022