Across Europe, the movement of rent prices in the final quarter of 2023 showed a consistent slowdown in their upward movement, as reported by HousingAnywhere. HousingAnywhere’s international rent index indicated a modest 5.8% year-on-year increase, marking the most restrained surge since 2021 and the lowest escalation within the financial year.
Djordy Seelman, CEO of HousingAnywhere, cautiously noted a glimmer of hope regarding improved housing affordability owing to this tempered year-on-year rent increase. Noteworthy was Amsterdam, notorious for its high living costs, where the year-on-year price for an apartment decreased slightly from €2,300 to €2,200 in Q4 of 2023. Nonetheless, Seelman emphasised that despite this slower pace of increase, rents persist at levels that are excessively high and largely unattainable for many. Moreover, the chronic shortage of housing continues to affect the most sought-after European cities, continuing the cycle of unaffordable housing prices.
Amsterdam maintains its position as the costliest city for apartment rentals in Europe, closely followed by Rome at €2,000 per month in Q4 of 2023. Milan is also a contributor in this high-stakes race, with rents hovering around €1,850 on a monthly basis. Notably, Italian cities have experienced a substantial surge in apartment prices, with Rome and Milan ascending to the second and third positions, respectively, in the rankings during Q4.
Rome stands out for its unexpected year-on-year increase in room prices, witnessing a sharp 11.3% surge since Q4 of 2022. In Germany, both Cologne and Munich claim second and third spots, respectively, for the highest monthly room prices.
Seelman drew attention to Lisbon’s movement, which initially held the record for the highest absolute apartment prices in Q2, only to drop to the eighth position in the rankings by the close of the year. The overarching housing crisis persisting across Europe demands immediate and targeted intervention from policymakers to address this pressing issue.
