The HousingAnywhere International Rent Index report for Q1 2021 shows a European rental market that remains heavily impacted by COVID-19 and regional lockdowns. But change looms on the horizon: rental prices are declining less rapidly compared to the previous quarter the firm says, with vaccines becoming more available.

After being down throughout 2020 due to the rent cap, Berlin apartment rental prices are showing a steep increase: up 11% to €1,122 per month, an average of €25sqm. Since the introduction of the much contested rent cap in February of 2020, rents dropped by 10-15%. The German Economic Institute (DIW) reported that while the rent cap has pushed down rents in the capital substantially, it has also caused Berlin’s rental market to shrink by more than 50%. 

For the first time since Q2 2020, Madrid saw rents increase by 1.4% for one-bedroom apartments to €1,119, an average of €19sqm. As a result of tourist accommodation not getting booked, many of those apartments in the higher price segments entered the residential market, which is also under a proposed rent cap. 

A rental cap proposed to counter sharp rental price increases in Barcelona is also shrinking Catalonia's rental market. Last quarter’s steep decrease is slowing down: rents for apartments are down 4.4% compared to 4.9% in the previous quarter, resulting in rent of €1,130 or €17sqm.