European rental price growth slows

1 May 2020 | General

Rental price growth across Europe has started to slow due to COVID-19, research from accommodation marketplace HousingAnywhere has revealed.

Between Q4 2019 and Q1 2020 rental prices fell by 0.1% in Barcelona (pictured), the first time the city has seen a fall since 2013.

In London quarterly rental growth was 0.5%, the smallest increase seen since 2015.

Djordy Seelmann, chief executive of HousingAnywhere, said: “As travel and international mobility has halted, landlords are freezing their rental prices, and in some cases, even lowering them.

“As the market is reorienting itself, we do see an increase in local transactions on the platform, which can be attributed to two trends: local landlords and real estate players looking for online platforms to help them reach a bigger audience, and short-term rental making a shift to mid-term rental.

“What we’re seeing is short-term rentals being put on the platform for mid- to longer-term use. Diversifying portfolios is another trend we’re seeing at the moment, where landlords choose a combination of short, mid and long-term rentals.

“The question remains how long this trend will last once the COVID-19 crisis is over and international travel and mobility starts returning.”

Annually some regions still show significant rental price growth, with Vienna (11.5%) and Brussels (6.4%) leading the way.

This post has originally been featured in Property Wire.