Research shows that London is one of the most expensive cities in Europe to rent. Dublin tops the list of most expensive cities, followed by Paris and Oslo.
Inner London is the continent’s fourth most expensive city with an average rent of €24.4 (£20.99) per square meter per month, while Greater London residents pay an average of €19.5 (£16.72) ). /m², according to Deloitte research.
Compare: €32.8 (£28.13)/m² in Dublin, €28.50 (£24.48)/m² in Paris and €28.00 (£24.05)/m² in Oslo , after prices fell 0.5 percent in 2022. .
According to a survey of 66 European landlord cities, excluding some notoriously expensive cities such as Zurich and Geneva, the average European city renter pays an average of €14.38 per square meter – that is, Dubliners. pay more than twice the European average, while inner Londoners pay almost double.
The only two European cities where rents fell annually were Paris, where rents fell 0.5 percent, and Manchester, where rents fell 9.7 percent to an average of €10.7 per square meter.
Living in cities in Germany, Belgium, Denmark and the Netherlands was cheaper than living in London.
Kate Henderson, chief executive of the National Housing Federation, blamed the “rising private rents” in London on “the UK’s broken housing system caused by decades of underinvestment in affordable housing”.
Mrs Henderson told me I“Furthermore, successive governments have focused on short-term and piecemeal approaches to housing policy, with some measures aimed at increasing home ownership rates, exacerbating the problem by rising house prices and further cuts in social housing.”
“Those who no longer have access to social housing or can no longer afford to buy a flat are flocking to the private rental sector, creating more demand and driving up private rental prices even further.”
Deloitte’s research found that Ireland and Norway were the top two countries whose cities had the highest rental prices, with Dublin, Galway, Cork, Oslo, Trondheim and Bergen each asking for more than €20 (£17.80) per m². mark m.
Colin Richardson, head of research at CBRE Ireland, attributes high rental prices in Dublin to the property market’s inability to keep pace with its growing economy and population.
Mr Richardson said it I: “Over the past decade, Dublin has benefited from a thriving economy and labor market, as well as significant population growth. However, the new housing construction and development sector has been unable to keep up with this growth, resulting in a significant shortage of rental properties in Dublin.”
He said the 34,000 homes “likely to be delivered in Dublin” should mitigate the “imbalance between supply and demand”, adding that the current cap on rent increases of 2 per cent a year “takes affordability into account”.
At the other end of the scale, the study found that Bulgaria has the lowest average rental prices, with tenants in Burgas in eastern Bulgaria paying an average of €3.1 (£2.66) per m².
The largest annual change in rental prices was recorded in Slovenian cities, including Maribor with an increase of 66.5 percent, Kranj with an increase of 40.8 percent and Ljubljana with an increase in rental prices of 37.7 percent.
Paul Tostevin from Savills World Research told us: I that “constrained supply” and “strong demand from domestic tenants, international tenants relocating for work and study, and potential buyers” turning to the rental market amid high interest rates have reshaped the European rental market.
“Looking ahead, we expect rental prices to remain above capital value until the end of 2023 and into the medium term as supply remains constrained amid rising demand and most cities experience positive rent growth… until the end of 2023 ” – said Mr. Tostevin.
“Supply is expected to remain limited in many cities around the world. Several factors, including rising construction costs, development challenges and rising debt levels, are contributing to limiting the availability of key inventory and putting upward pressure on rental prices.”
Source: I News
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