The latest report from HousingAnywherean important European real estate rental platform, indicates a slowdown in the increase of the rentals in Europe, but highlights how the main Italian cities, including Milanstill maintain among the highest rates.
Rentals in Europe: Moderate but steady growth
HousingAnywhere’s International Rent Index shows a average increase of 3.8% for the first quarter of 2024, suggesting price stability despite a deceleration in increases. This slight decline represents a slowdown compared to the 5.8% annual growth recorded at the end of 2023, signaling a possible stabilization of the market.
Italy at center stage
In detail, Rome confirms itself in second place in Europe in terms of rental costs, with an average rent of 2,000 euros, followed by Milan who, in eighth place, maintains an average of 1,700 euros. These data place Italian metropolises among the most expensive, despite a general trend towards slowing price increases.
Here are some data from this edition:
- Five cities in Europe consistently maintain the podium of the most expensive in terms of rooms, apartments and studios, with average apartment prices at Amsterdam, Paris at 2,275 and 1,862 euros respectively.
- Rome queen in Italy in apartment prices, second in all of Europe with a rent of 2,000 euros, Milan eighth with 1,700 euros. It grows Turin at 37.5%, but remains among the most accessible, with “only” 1,100 euros.
- Bologna it ranks fifth in the price ranking for studio apartments, with over 25% growth from 2023 and over 1,370 euros of spending required. Rome occupies ninth position with 1,200 euros and an annual increase of 20%.
Milan: culture of expensive rent
Milanin particular, stands out for its resilience of hers rentschallenging the European trend with canons that remain high. The Lombardy capital, famous for its economic and cultural dynamism, continues to represent a challenge for tenants looking for accessible housing solutions.
Perspectives and solutions
Djordy Seelmann, CEO of HousingAnywhere, highlights the importance of joint interventions between the private sector and institutions to mitigate pressure on the rental market, underlining the need to increase housing supply to respond to growing demand: “Although the burden of inflation is starting to reduce, the phenomenon continues to exert significant pressure on tenants’ wallets. – His words – At the same time, rising construction costs pose a risk to cities’ housing expansion plans for residential purposes.
Industry leaders and policy makers should prioritize collaboration to ensure timely delivery of supply expansion plans, as addressing supply shortages is key to effectively alleviating pressure in European long-term rental markets“.
A recent survey of Purpose Built Student Accommodation (PBSA) leaders conducted by research firm BONARD in late 2023 revealed that 52% of respondents foresee the need to increase rents in Europe to offset rising construction costs .
In this context, Milan confirms itself as a focal point of the Italian real estate marketwith a dynamic that requires attention to guarantee accessibility and sustainability to its citizens.
As Europe shows signs of slowing rent growth, Milan and other large Italian cities continue to navigate troubled waters. The solution? A shared commitment to a more equitable and sustainable housing future.
