According to the HousingAnywhere European Rent Index, which analyses rental data in the most popular cities among students and young expatriate workers, Milan is one of the most expensive housing markets to rent a flat.
The report claims that all the cities analysed (Barcelona, Berlin, Brussels, Madrid, Milan, Rotterdam and Vienna) showed an upward trend in the fourth quarter of 2018 in each of the rental segments surveyed: private rooms, studios and one-bedroom apartments.
As for room rentals, the city with the highest prices in Europe, among those surveyed, is Milan with an average of 594.13 euro and a year-on-year increase of 3.49%. This is followed by Berlin (547.09 euro and +7.32%) and Rotterdam (529.03 euro and +2.95%). The sharpest rise was in Madrid (+7.69% on an interannual basis) where the average cost of a private room is around 500 euro, exceeding Barcelona which has an average of 470 euros.
The HousingAnywhere European Rent Index also shows that Milan is one of the most expensive cities in terms of renting a studio apartment, with an average of 825 euro. In fact, Milan is second only to Barcelona, where the average price is just 5 euro more, and just ahead of Berlin (812 euro). In this market segment, the largest growth (8.56%) is in Rotterdam, which has a market share of 740 euro.
Moving on to the market for one-bedroom apartments, the most expensive cities once again are Milan (1,133 euro) and Barcelona (1,139 euro and 8.7% increase, which is also the biggest growth ever) and they are practically on an equal footing.
The increase in rental prices reflects a growing shortage of available properties, and increasing competition between students and young professional expats to find suitable housing. This factor has also influenced the increase in rental prices for rooms, studios and apartments in all of Western Europe.
"Demand for rentals is currently outstripping supply in many popular cities for expats,” explained Djordy Seelmann, CEO of HousingAnywhere. “The growing number of international students and young professionals has led to a lack of affordable housing for these target groups".
This is why "it is important to avoid price bubbles that prevent students and young professionals from finding suitable accommodation in the central areas of cities and in the vicinity of universities, and it’s important that cities take into account these market developments in the long term and act by developing more accommodation in the areas they are looking for, so as to make the market more balanced," concluded Seelmann.