THE RENTAL EXPERIENCE ACROSS EUROPE
Fruzsina Hodson, senior manager of group destination services at Santa Fe Group, says in Europe housing shortages, rising prices and new regulatory demands are all putting pressure on an already tight market.
DUBLIN, IRELAND “The Dublin property market has shifted focus from availability to affordability,” she says. Despite improvements in supply, the affordability of properties has become the primary challenge. High-priced developments have intensified the issue, making it increasingly difficult for residents to access affordable housing options. The regional towns and cities outside Dublin are also facing similar affordability challenges with constrained supply and rising prices. New properties are gradually emerging, particularly in Dublin, but this has done little to improve the availability of affordable rental options. Key trends include the ‘45% rule’, where rent should not exceed 45% of the tenant’s net income, and challenges faced by pet owners who are often excluded from most rental options.
NETHERLANDS “The Dutch housing market is undergoing significant regulatory changes following the approval of the Affordable Rent Act in June 2024,” says Fruzsina Hodson. The new law, effective from July 1, 2024, introduces rent regulations for medium-price housing, easier rent reviews and enforceable rent increases. The legislation is expected to influence the rental market dynamics significantly, making medium-price housing more accessible. However, the shortage of available housing remains a challenge, particularly in popular cities like Amsterdam, where the competition for rental properties is fierce.
GERMANY Germany’s rental market continues to face challenges. Limited housing supply, high rental costs and complex application procedures are major obstacles. “The market is especially tight in major cities like Berlin, Hamburg, Stuttgart and Munich, leading to fierce competition among tenants,” she says. Landlords have stringent requirements, often displaying preferences based on nationality, profession
and family status. Social housing shortages and long waiting lists further complicate the situation. Tenants face high upfront costs and temporary accommodation while searching for permanent housing.
LISBON, PORTUGAL The Lisbon rental market remains highly competitive due to a surge in demand from foreigners and local families. Prices have risen significantly, with a shortage of long-term rental options across the city. “Securing housing early is critical as quality
properties are rented out quickly, sometimes within hours,” warns Fruzsina Hodson. Landlords often demand higher deposits or long-term upfront payments. The rental prices are almost uniform between the city centre and the outskirts, as residents have been priced out of the capital. Temporary housing prices have also increased, especially during high-demand seasons.
PORTO, PORTUGAL “Porto’s real estate and rental market in 2024 is characterised by a shortage of properties for both short-term and long-term stays,” she explains. The tourism boom, favourable weather and financial benefits have attracted a surge of foreign residents, pushing rental prices higher across the city and its outskirts. Limited supply and increased demand have led to competitive bidding wars and a fast- moving market. Tenants are being advised to confirm their rental choices immediately, as quality properties are often rented within hours of being listed. Long-term rentals in areas like Foz and Boavista remain in high demand and securing housing early is essential for successful relocation.
SINGAPORE “The Singapore residential rental market is experiencing a cooling trend in broader market segments while high-end properties, especially four-bedroom units, are seeing renewed demand,” she says. The overall rental index has declined for four consecutive quarters, with a significant 13.5% drop in Q1 2024. However, Q2 saw a slight uptick in activity due to the return of expatriates. The market is expected to stabilise further with consistent pricing across most districts. High-end properties continue to experience rent increases due to a spike in demand, contrasting with the stable or declining rents for most other property types.
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GLOBAL MOBILITY
RE SIDENTIAL PROPERTY
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