【World Property Journal】European Rents Drop Lower in Q2 as Global COVID Crisis Continues

Based on the most recent HousingAnywhere International Rent Index Report for Q2 2020, quarterly rental prices have dropped in Q2 for nearly all European cities. While early signs of the impact of the Covid-19 pandemic on rental prices were already noticeable in the first quarter of 2020, the effects of the travel ban, which was valid from mid-March, are now fully visible.

Rents for single rooms have dropped the most by year-on-year comparison, while prices for apartments and studios are less impacted. This is a result of strengthening local markets: even though demand for these properties has decreased significantly among expats and young international professionals, it remains high among the local inhabitants of larger European cities. More single rooms are left vacant as there is less demand for these properties from international markets. Cities that were less impacted by Covid-19, in countries that were able to reopen their borders in mid-June, are showing smaller drops in rental prices as a result.

Despite the impact on the rental prices being evident, the effects differ per city. London remains the most expensive city to rent in Europe, but the rental price growth seen in the city in recent years is slowing down even further. In Milan, Barcelona, and Berlin, rental prices are now lower than in Q2 2019.

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