Rotterdam 07 July, 2022 – The HousingAnywhere International Rent Index report for Q2 2022 shows that overall rental prices have increased by a staggering 19,3% over the past year. Apartment prices have increased by 20.8%, studios by 22.9% and private rooms by 14.2%. This drastic overall increase is driven by the surging demand level that is already surpassing last years' rental peak season, which normally occurs in Q3.
“The desire for a flexible and borderless lifestyle exploded as mobility restrictions got lifted,” says Djordy Seelmann, CEO of HousingAnywhere.
We are witnessing an increase in demand due to the revival of international mobility. For work, for study, or just to improve quality of life. International student applications are sky-rocketing and so is people’s ambition to build a career beyond the borders of their country of origin. It is no longer just about the place where people need to be. It is about the place they want to be.
Ever since travel restrictions have been lifted, we have witnessed an increasing demand for short-term rentals. With housing markets across Europe being already strained, the recovery of tourism and increasing demand for short-term rentals is not helping to relieve tensions. Many cities are experiencing a shortage of available accommodation, leading to an upward pressure on rental prices for city residents.
With housing markets across Europe being already strained, the recovery of tourism and increasing demand for short-term rentals is not helping relieve tensions. With the ease of travel restrictions, tourists are packing their suitcases to enjoy their summer holidays abroad. Due to high demand and potential higher yield for short-term rentals, property owners have little incentives to offer their spaces for mid- to long-term stays. Above being said, with the prospect of more mid- to long-term rentals transitioning to be offered as short-term rentals, people are facing fierce competition to find the space to live .
In prime cities such as Amsterdam, Lisbon, Paris and Milan, we already see record high rental prices which will continue to rise. And in addition, cities such Rome, Munich, Reykjavik, Berlin and Hamburg showcase sharper QoQ increases this quarter, which suggests that it will not be too long till the rental prices catch up with the above mentioned prime cities.
"We urge all stakeholders in the rental ecosystem to break the vicious cycle. Expecting demand to increase even further in Q3, the already malfunctioning rental ecosystem will face an even more intensified housing crisis, once again promoting quick fixes in silos. However, enforcing short-term restrictive housing policies are failing to hit the balance between demand and supply.” says Seelmann.
International mobility is becoming a lifestyle choice. Whether local or international, housing is the fundamental starting point for anyone to build upon, with their surrounding neighbourhood that people can call home.
Amsterdam is leading on quarterly increases for studio rent by 24.5%, bringing the year over year increase to 51.1%. The average price for an Amsterdam studio is now €1,805 (compared to €1,195 in Q2 2021). Followed by Reykjavik for studio rent quarterly increase by 23.9%; Hamburg studio rent increase by 17.7% and Barcelona studio rent quarterly increase of 17.7%. While apartment prices in Valencia are still relatively low, they are catching up fast. The popular city has shown a quarterly increase for apartments prices by 14.3% and a year over year increase of no less than 51.9%. This brings the average apartment rental price in Valencia to €1,200 (compared to €790 in Q2 2021). The following cities have seen a steep yearly increase in studio prices: Berlin (by 43.8% to €1,237), The Hague (by 45.6% to €1,150), Munich (by 42.1% to €1,350) and Budapest (by 53.9% to €500).
For this 16th quarterly edition of the rent price index, HousingAnywhere analysed a total number of 57,104 properties advertised in the cities that are included in the report on the HousingAnywhere platform between June 2021 and June 2022. Data shown includes single rooms in joined living arrangements, studios, and one-bedroom apartments of which about 96% of properties were fully furnished, geared towards servicing young professionals and students relocating across the borders.
HousingAnywhere is Europe’s largest rental accommodation marketplace. With the full ownership of Kamernet and the acquisition of majority stakes of Studapart, the company represents 20 million+ yearly unique visitors, 160,000+ properties available for rent and 96,000+ tenants finding their new homes in Europe, based on the 2021 performance. Young professionals and students, mostly aged between 18 and 35, looking to rent a home are matched with accommodation providers; ranging from private real estate owners to large-scale property managers. Through its advanced platform, tenants typically book for longer stays outside of their country of origin and rent accommodation for 3 to 12 months. The company aims to help 130,000+ people find a home in Europe in 2022. The Rotterdam-based technology scale-up currently employs 260 people.
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