European room prices at their lowest since 2015

The cost of renting single rooms across Europe has fallen to their lowest point since 2015, HousingAnywhere’s International Rent Index has found.

Helsinki in Finland saw the sharpest falls in the second quarter of 2021, with the price of single rooms dropping by 11.8% to €590 per month.

Rome, Italy, also experienced a price drop of 10.4% to €506, while Madrid, Spain, saw room rents drop by 10% to €462.

Djordy Seelmann, chief executive of HousingAnywhere, said: “This would be a good time for students and young professionals to start looking for accommodation abroad.

“While prices for rooms are at an ultimate low at the moment, they are expected to start rising again once travel restrictions are lifted.”

Paris is the most expensive city for room rentals (€694), followed by London (€658), Munich (€646), Utrecht (€637) and Amsterdam (€618).

However the cost of renting apartments is now starting to rise fast throughout Europe.

Rotterdam in The Netherlands saw a quarterly increase of 3.9% to €1,344 in Q2 2021 following a two-year slump.

And there was a bigger quarterly increase of 5.3% in Madrid, to €1,178,

Meanwhile, after the German capital Berlin saw a reversal of rent caps (Mietendeckel), which were ruled unlawful by the German constitutional court, prices increased by 10.6% to €1,240.

Seelmann added: “Restrictive price measures, such as the Mietendeckel, offer no long-term solution, as we can now clearly see.

“Now that we see tourists returning to European cities, local governments should take decisive action to protect their residential housing stock. If cities are now complacent, they will see much of it returning to Airbnb and other holiday rental platforms.

“When the pandemic hit in 2020, we were appalled by how much local residential housing stock was tied up in holiday rentals for tourists.

“If cities do not plan to restore the balance between tourists and locals, local communities will lose out. Rental prices will rise if cities continue to allow housing stock to be rented out to tourists.”

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