As predicted in the second quarter of 2024, rental prices for new leases across Europe have continued to rise, although at a slower pace, because of tight supply and limited moves by current residents. Paris is especially interesting to watch right now as the Olympic games get underway. Rental supply is always limited in the City of Light, with increased challenges brought on by short-term rentals for those coming to the Games. The market is expected to stabilize in September but that will essentially mean a return to historic challenges in availability.
Finding a place to rent with the help of a Dwellworks expert increases the likelihood of securing a well-matched residence for any relocating employee or extended stay traveler, thanks to our local and regional on-the-ground presence, our familiarity with local market conditions and property managers, and our ability to plan for trends based on years of experience. Start here to find information on a particular city’s rental trends and then reach out for our award-winning help with relocation home search and destination services.
Dublin: A Popular Destination Seeing Price Increases and a Mixed Supply Story
While availability in some higher-priced market segments increased earlier this year, availability overall remains tight with the new construction not reaching the broader marketplace. Rental vacancy in the city and nearby suburbs is less than 2%. There are fewer than 2,000 active rental listings across all of Ireland and even fewer in Dublin. Landlords are leaving the market since rent controls are a disincentive for their profitable operations.
Prices are also increasing in alternative, smaller markets. Limerick has seen the greatest increase in overall rental prices due to very limited stock. Those moving to Ireland for work and adding to the rental search pool include professionals in the construction and green energy sectors, as the government continues to tout these industries.
London: Stabilization Moves Forward Despite Challenges
As noted in the second quarter of 2024, price stabilization, in the form of a slowed of rental increases, continues across most London neighborhoods, though overall rent remains high. Prices are more affordable in suburbs close to London, but homes are being rented quickly and rental rates are creeping up. Listings, on average, have about 15 applications as soon as the home becomes available, with even more applications in popular neighborhoods. New ‘built to rent’ supply has come online as previously reported, but it does not fully meet demand. The promise of affordable housing from newly elected deputy prime minister Angela Rayner will be slow-moving as housing associations warn that more must be done to fix already existing financial pressures on would-be renters in London.
Amsterdam: Rental Prices and Lease Restrictions Climb
With a vacancy rate of less than 2% and rental prices up more than 8.5%, officials estimate that Amsterdam needs 300,000 new homes to meet housing needs. The Affordable Rental Act, effective July 1 of this year, moves thousands more rental units to the social housing sector and there is very little incentive for new property construction. With limited housing and high demand, landlords are strict on showing times and make no exceptions for renter requirements, timing, or availability. Most landlords also require deposits equal to 3x or even 4x the rent in gross monthly salary.
Luxembourg: Prices Remain High, Vacancy Remains Low
Luxembourg trends are more of the same from last quarter. Though interest rates are decreasing, new development has not yet picked up nor are renters moving into homes. Overall rental supply is low because of fixed stock and strict rental regulations. There is limited rental movement in Luxembourg, since renters do not want to risk higher rates if they move. With some new government programs in development, new builds may be on the horizon. Expect no landlord negotiation on strict rental terms and deposits equal to 3 months’ rent.
Berlin, Frankfurt, Munich, and Other Key Cities: No Major Changes to Very Tight Markets
Germany continues to experience stagnant rental housing availability this quarter, despite the government's acknowledgment of the severe shortage of affordable housing. In Berlin, Frankfurt, Munich, and their suburbs, the vacancy rate is less than 2 percent.
There is also very limited new construction due to constraints like high building costs, land prices, and regulatory complexities. As in other European cities, renters in Germany have little incentive to move or buy, since they would face increased costs in a new lease or mortgage. As a result, turnover in existing rental inventory remains low. Landlords are holding firm on their prices and lease conditions. In smaller and more remote cities such as Dresden, Magdeburg, Guben, Cottbus, and Wismar, rental prices are lower, a result of less volume.
Paris: What Will Happen Post-Olympics?
With the Olympic games nearly underway, most short-term housing is booked. Opening ceremonies are July 26 and the games, including the Paralympics, continue through September 8th. After that, the competitive market is expected to stabilize some as landlords open their Olympic bookings to the broader long-term rental market. Even with this stabilization, Paris remains a popular destination for corporate relocation and other would-be renters, so competition for limited inventory will remain high.
We’ve advised that it is best for companies planning to relocate their employees to Paris to wait until after the summer games. For a full guide on the impact of the Olympics on rental housing, click here.
Zurich: A Strong Economy Means High Prices but Also New Construction
The cost of rentals in Zurich is increasing as predicted, as it remains an attractive destination for tech, finance, and life science industries. Because of the booming economy, investors see opportunity and plan to introduce new construction in 2025 and beyond. Renters may want to consider their options outside the city centre, since public transportation is excellent and prices are lower in the suburbs.
Companies are advised to book assignees relocating to Switzerland into a short-term rental to get familiar with their housing options, which can take a while to sort through in a competitive marketplace with limited listings. For all newcomers, a residence permit is required and must be applied for within 14 days of arriving in the country. It can be transferred to a permanent residence permit once long-term housing is secured.
Vienna: Reasonable Rents Continue in a Highly Desired Destination
In a world of economic and political challenges, it’s rare to see a city thriving without notable disruption, but Vienna continues to be a highly desirable destination for expatriates. Its cultural amenities, ease of transportation, excellent schools with good availability, family-friendly housing, and forward-looking government planning for housing make the city among the best places to live in the world.
It is worth noting that in Austria, private rental real estate agents are ‘paid by those who hire them’ and landlords may add the cost of broker fees to the rent if they are paying the broker’s fee.
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Finding rental housing in popular destinations can be a challenge. Continue checking back to our blog and social media for housing market updates every quarter and let us put our expertise to work for you. You can also subscribe to our newsletter to get them and other industry news right to your inbox.
About Dwellworks:
Dwellworks is the world’s largest provider of destination-related services and temporary living solutions for the globally mobile workforce and business travelers. We provide business-to-business solutions for Fortune 1000 and emerging companies directly and through their relocation management partners. Whether a company needs to relocate its employees across the world or the country, we provide a range of support services to help employees and their families transition successfully from their home location to a new destination.
Dwellworks operates according to our core values of Integrity, Teamwork, Performance, Innovation, and Fun. These are the root of everything we do – from the Teamwork aspect of sourcing and supporting our helpful local Consultants to assist any relocating employee in hundreds of cities worldwide with their move, to the Integrity of our highly-trained Intercultural experts who are here to help transferees adjust to new cultures and confidently settle into their destination locations, to the Innovation of our myDwellworks technology platform that familiarizes employees on assignment with their destination and enables customized conversations on properties, schools, and situation-specific needs.
Dwellworks supports the diversity of our clients’ globally mobile workforce with personalized destination solutions in 16 countries, covering major relocation markets. Dwellworks has consistently responded to the mobility services and needs of our global clients. In 2020, Dwellworks launched Dwellworks Living to expand our original portfolio of corporate housing markets into a full-service corporate housing operation, offering alternative accommodations for relocation and business travel customers in 125 countries. Our full-service real estate brokerage, Station Cities, supports home rentals, sales, and purchases in the Tri-State New York area and Chicago. Visit our homepage, learn about our services, and read our blogs to learn how we can help with your relocation and business travel needs.
