2023 was a year marked by a slowdown in rent rises across Europe, confirms HousingAnywhere's International Rent Index by City for the final quarter of the year.
The annual rates of increase (YoY) have been decreasing every quarter, and the year closed with the lowest figure, of 5.8%, the index reveals, also showing a quarterly change of -0.6%, after the usual increase in rents recorded in the third quarter of the year, due to the fact that this is the peak season for the mobility of international students and young professionals.
Lisbon registers highest quarterly variation in apartments
Within the Portuguese cities, Lisbon registered the biggest quarterly variation in apartments, -15.8%. Rooms also followed the negative trend, with -5%, and only studios saw an increase in rental prices, which stood at 6.4%. In Porto, on the other hand, apartment rents fell by 15% over the same period. Rooms didn't suffer any changes, and the studios show a variation of 28.4%.
As for the annual variation in apartment rents, the Portuguese capital saw a decline of -11.3%. However, rooms and studios increased by 14% and 37.5% year-on-year, respectively. Invicta recorded a year-on-year increase in all types of property. Apartments are 16.9% more expensive, rooms have risen by 6.5%, and studios by 11.9%.
At European level, the annual increase in rental prices recorded this quarter is the lowest price increase we've seen since the 3.8% of the 3rd quarter of 2021.This indicates a positive development in terms of housing affordability in Europe, says Djordy Seelmann, CEO of HousingAnywhere.
In order for this trend to continue, it will be essential to solve the housing supply challenges in Europe's most sought-after destinations in 2024
Analyzing the European panorama, with regard to rooms, Amsterdam leads the way as the city with the highest price, at 940 euros, followed closely by Cologne (850 euros), Munich (850 euros) and The Hague (820 euros). On the other hand, the traditionally less expensive cities for this type of property are seeing some of the biggest annual price increases. For example, Lisbon (14%), Florence (13.2%), Rome (11.3%) and Valencia (7.1%) demonstrate how cities are recovering prices as the pan-European housing rental crisis continues.
Lisbon records highest annual price increase for stays
When it comes to studios, Munich is the city with the highest price, at 1,570 euros, followed by Utrecht (1,425 euros), Hamburg (1,418 euros) and Paris (1,351 euros). Similarly to the trend for rooms, Valencia and Lisbon, with rents of 900 euros and 1,100 euros respectively, recorded the highest annual price increases for stays, with a 48.8% increase for Valencia, followed by Lisbon (37.5%). Brussels (803 euros), Turin (720 euros) and Budapest (600 euros) are the most affordable cities for this type of property.
Porto registers sharpest annual increase for apartments
With regard to apartments, the Portuguese capital, which in the second quarter was the most expensive city, has now fallen to eighth place. The southern European cities of Valencia, Porto and Madrid recorded the sharpest annual increases for apartments, with 18.2%, 16.9% and 15.5% respectively.