The HousingAnywhere International Rent Index report for Q4 2020 shows rental prices are dropping once again across most major European cities. While Q3 of last year saw markets recover from the first wave of the global pandemic, the latest worldwide surge in Covid-19 cases reversed this trend for most cities. 

Djordy Seelmann, CEO at HousingAnywhere, said: “Rental markets continue to be dictated by the global pandemic, and it looks like the volatile days are not behind us just yet. Before vaccines become available to all population groups throughout Europe, we will have to deal with another series of lockdowns and its impacts on the rental market. Still, there is light at the end of the tunnel: we expect to see markets show signs of recovery in the second half of 2021.” 

The report stated that while London continues to hold the top position as one of the most expensive cities for rental accommodation in Europe, prices have dropped as its popularity is declining among internationals. Seelmann added: “Among international students the city’s popularity is declining as a result of the uncertain political climate the country is facing. Moreover, the UK recently announced its withdrawal from the Erasmus+ programme, which supports the international mobility of students. As a result, students seek alternatives and are considering new destinations such as Italy (+83%) and Germany (+53%). We expect this trend to continue well throughout 2021, further lowering London rental prices.”