In our January 2024 rental market update, we touch upon some key developments in London, Paris, and Amsterdam, cities that continue to attract global interest. London’s rental market presents signs of moderation, according to Rightmove’s recent analysis, while Paris continues to shine with its third consecutive year as the world’s top city destination, bolstered by a thriving tourism industry and the upcoming Olympics. On the other hand, Amsterdam’s rental market faces ongoing challenges, with the non-rent controlled sector experiencing an 8.5% increase in rents.
London Rental Market Latest
Rightmove has provided a great snapshot of London’s rental market. The portal has crunched the numbers from the last quarter of 2023 and found the pace at which rents are growing is moderating. Although the city’s average rent increased by 0.2% in the final three months of last year, the amount at which it rose is very marginal. When looking at 2023 as a whole, rent increases were as much as 12% but by Q4, this had halved to 6%. Rightmove says it expects rents to be 3% higher by the end of 2024. For balance, the latest HomeLet Rental Index found average rents in London fell by 2.2% in December, which is the greatest monthly fall since October 2020. It puts the city’s new average monthly rent at €2,496.38.
Average Monthly Rents in London
When it comes to rental values in London, it’s a repeat of the story we reported in December 2023. In January, rents increased for every property type that Klippa monitors. The most substantial hike was attached to a three-bedroom apartment in the suburbs, which rose from €3,027.33 pcm (per calendar month) to €3,201.02 pcm. This was followed by a rise of just over €100 a month for a three-bedroom apartment in the city centre, which has increased from €4,775.55 pcm to €4,867.95 pcm. More subtle uplift was noted for smaller properties. A one-bedroom city centre apartment is up from €2,611.66 pcm to €2,613.05 pcm, while a one-bedroom in the suburbs has risen from €1,891.28 pcm to €1,915.10 pcm.
Amsterdam Rental Market Latest
The turmoil in the Dutch rental market continues in 2024. The latest housing report from Pararius found rents in the non-rent-controlled sectors of the Netherlands were paying an average of 8.5% more to secure a property when compared to the same period in 2022. Sadly, Amsterdam has not been immune to the increases and the city’s rent rose by an average of 6%. One borough was especially susceptible, with Pararius finding new tenants in parts of Noord were paying 25% more than their predecessors. The report also highlighted how just 3,000 free-sector properties came up for rent in the capital during its monitoring period. In the city centre, new tenants now pay over €30 per square metre for a flat, or €2,100 for an average apartment of 70 square metres, a 20% rise on 2019.
Average Monthly Rents in Amsterdam
Only one property type fell in value over the last four weeks and that was a one-bedroom apartment in the centre of Amsterdam, dropping from €1,820.78 pcm to €1,800.38 pcm. The three other property types have become more expensive to rent. Tenants looking at a centrally located three-bedroom apartment will discover the biggest increase, with rents up from €2,865.18 pcm to €2,894.95 pcm. Smaller increases were noted for a one-bedroom apartment in the outskirts of Amsterdam, up from €1,454.88 pcm to €1,456.86 pcm, with the cost of a three-bedroom apartment in the suburbs rising from €2,149.17 pcm to €2,155.32 pcm.
Paris Rental Market Latest
The appeal of Paris received a boost in January 2024. The city was named as the world’s top city destination, according to Euromonitor International’s Top 100 City Destinations ranking. It is the third year in a row that Paris has triumphed, having beaten its rivals in 55 metrics across six key ‘pillars’: economic and business performance; tourism performance; tourism infrastructure; tourism policy and attractiveness; health and safety; and sustainability. The tourism aspect is of note, with A1 Real Estate revealing that since the beginning of 2024, prices for short-term vacation rentals have increased by 2 and sometimes 2.5 times. It also expects the Olympics to have a long-lasting effect, with demand for short- and long-term rentals from internationals continuing long after the sporting spectacle.
Average Monthly Rents in Paris
It comes as no surprise, what with demand building before the Olympics, that all property types tracked by Klippa have risen in value since our last report. Those hoping to secure a large property in the suburbs will see the biggest increase, with a three-bedroom apartment out of town rising in cost from €2,094.35 pcm to €2,150.96 pcm. There was also an increase of almost €30 per month for a one-bedroom apartment in Paris’s outskirts, where costs have risen from €935.79 pcm to €963.78 pcm. Similar uplift was noted for a three-bedroom apartment in the city’s heart, where the new rental price is €2,987.07 pcm, up from €2,958.65 pcm. The smallest increase was for a city-based one-bedroom apartment, up from €1,350.58 pcm to €1,361.78 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, 29th January 2024