Welcome to our December 2023 Rental Market Overview, where we’ll be giving you the lay of the land on the rental market scene in London, Amsterdam and Paris. We begin with London, which, after months of high averages, has finally started to witness some moderation in rental prices. The City of Light, Paris, is bracing for the upcoming 2024 Olympics, a spectacle that’s projected to have a ripple effect on local rental trends. From the Dutch heartland, Amsterdam sends signals of impending rental price hikes, accentuated by a recent jump in rental costs for the last quarter of 2023. In every city, the market dynamics differ, illustrating the need for tailored insights to navigate the varied landscape. Read on for our comprehensive and informative journey through the rental property markets.
London Rental Market Latest
The first signs that London rents are moderating have started to emerge. According to the latest report from HomeLet, the capital’s average monthly rent at the start of December was £2,174. While rents are still averaging above the £2,000 mark every month, there was a decrease of 0.8% between October and November. Also rebalancing the picture is tenant demand, which is now 12% lower than last year, according to Rightmove. There are additional indications that 2024’s rental market could look slightly different. The portal says supply and demand pressures for rental properties in London are starting to ease, and it expects there to be a 3% increase in newly advertised rental properties in 2024.
Average Monthly Rents in London
While those who monitor rent prices in London are noticing subtle differences in values, tenants have not yet noticed this. Rents for each property type that Klippa monitors have risen over the last four weeks. A one-bedroom city centre apartment has increased in cost from €2,600.99 pcm (per calendar month) to €2,611.66 pcm, while a property of the same size in the suburbs is up from €1,859.46 pcm to €1,891.28 pcm. Larger properties across London are also more expensive. A three-bedroom apartment in the city centre has risen by almost €25 per month, to €4,775.55 pcm. In the suburbs, a three-bedroom apartment is up a modest €4 to €3,027.33 pcm.
Amsterdam Rental Market Latest
The NL Times has reported that rental prices in the largest Dutch cities, including Amsterdam, jumped 5% to 8% in the last quarter of 2023, with the prospect of costlier rents in 2024. In December, the Netherland’s housing minister, Hugo de Jonge, announced that rents for housing in the non-rent-controlled sector could rise by a maximum of 5.5% from January. This increase reflects that landlords are only allowed to raise the rent once a year, and the most recent increase is based on the annual rate of inflation over the past year, plus 1%. Landlords intending to increase the rent must give tenants one month’s notice of the increase. It is expected that Amsterdam will be covered by new legislation for determining ‘free sector’ rent increases in the first half of 2024.
Average Monthly Rents in Amsterdam
The rent value rises that were reported by NL Times have been reflected in the real-time costs of securing a property in Amsterdam. In fact, every property type monitored by Klippa has become more expensive to secure in the last four weeks. A one-bedroom apartment in the city’s centre is almost €100 more a month to rent, up from €1,738.55 pcm to €1,820.78 pcm. Also posting a rent rise of almost €100 is a centrally located three-bedroom apartment, which has risen in cost from €2,788.76 pcm to €2,865.18 pcm. It’s also costlier to rent in Amsterdam’s suburbs. A one-bedroom apartment in the outskirts is now €1,454.88 pcm, while a three-bedroom apartment in the suburbs has risen to €2,149.17 pcm.
Paris Rental Market Latest
As 2024 dawns, Paris can finally say ‘we are hosting the Olympics this year’. The event is expected to place enormous strain on the city’s rental sector. A report by Reuters detailed how Paris’s hotels have been chastised for not opening their Olympic bookings early enough. This has driven sporting delegations and spectators to holiday let platforms, such as Airbnb. The issue has been compounded by the poor enforcement of a Paris law that says Parisians are not allowed to rent their property on Airbnb for longer than 120 days. As the sporting spectacle grows closer, Klippa will be closely monitoring the availability of rental properties in the city.
Average Monthly Rents in Paris
The cost to rent in the centre of Paris is a tale of two halves. In high demand are smaller properties, with the cost of a central one-bedroom apartment rising from €1,307.74 pcm to €1,350.58 pcm. The cost to rent a three-bedroom apartment in the city’s heart has decreased a little, falling from €2,968.75 pcm to €2,958.65 pcm. The reverse is true in Paris’s suburbs. It’s now more expensive to rent a three-bedroom apartment out of town, up from €2,059.62 pcm to €2,094.35 pcm, while a one-bedroom apartment on the outskirts is €5 cheaper at €935.79 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, 27th December 2023