11 April 2017 – Idealista
According to the residential rental clock prepared by JLL, the main residential rental markets in Europe and the Middle East are forecast to grow over the next few months. Whilst London, Berlin and Lisbon will see slower rises, rental prices in the centre of Paris, Dubai, Barcelona and Madrid will see accelerated increases.
According to the analysis conducted by the consultancy firm JLL, 15 large cities in Europe and the Middle East will register increases in residential rental prices over the next few months. The so-called Property Clock surveys the performance and outlooks for the main residential markets on the continent, and the results indicate that rental prices are going to grow in the short term.
The consultancy firm believes that given the particularities of each market, it is common for pressure to be exerted on rental house prices, due to increases in demand, in the face of supply that is not capable of absorbing it.
“There is a critical imbalance between demand and supply. A rapid demographic change is creating population pressure on the large metropolitan centres. There are not enough homes to alleviate this pressure and that is causing prices to rise”, says Philip Wedge-Bernal, Residential Analyst in EMEA for JLL.
This change means that, in one year, cities such as Dubai and Paris have gone from seeing rental prices fall, to seeing them bottom out and grow again, all in quick succession, with rises of 1.3% in 2016.
Cities such as Dublin, Warsaw, Amsterdam, Madrid and Barcelona will see more accelerated increases in the price of rental homes, whilst prices in London, Copenhagen, Manchester, Berlin, Frankfurt, Helsinki, Stockholm and Lisbon will also grow, but at a more moderate rate.
“The pace of recovery is affected by the political and economic uncertainty. The elections in the main European countries will probably affect confidence in the market, which will have a negative effect on the growth in rental prices”, said Wedge-Bernal.
Original story: Idealista (by D. Marrero)
Translation: Carmel Drake