Money Buzz! Europa

Tag: rent

  • Europe: House prices up by 26.8%, rents up by 14.6% since 2010

    Europe: House prices up by 26.8%, rents up by 14.6% since 2010

    Over the period 2010 until the third quarter of 2020, rents increased by 14.6% and house prices by 26.8% in the European Union.

    When comparing the third quarter of 2020 with 2010, house prices increased more than rents in 16 EU Member States, Eurostat data shows.

    House prices increased in 23 Member States and decreased in four, with the highest rises in Estonia (+105.1%), Hungary (+92.2%), Luxembourg (+90.5%), Latvia (+83.6%) and Austria (+81.3%).

    Decreases were observed in Greece (-31.0%), Italy (-15.5%), Cyprus (-7.7%) and Spain (-4.5%).

    Different pattern for rents

    When comparing the third quarter of 2020 with 2010, rent prices increased in 25 EU Member States and decreased in two, with the highest rises in Estonia (+136.6%), Lithuania (+106.9%) and Ireland (+62.2%).

    Decreases were recorded in Greece (-25.2%) and Cyprus (-4.5%).

  • Effects of the pandemic on the housing rental market in Bucharest

    Effects of the pandemic on the housing rental market in Bucharest

    More than half (55%) of Bucharest residents currently living on rent do not plan to buy an apartment next year and want to continue renting, according to a Colliers International study.

    However, 45% of them consider changing their rented housing, the majority (66%) because they want a more spacious or better positioned apartment, including new buildings, and only a third because they want to lower their rental costs.

    The crisis caused by the coronavirus is beginning to show its effects on the housing rental market as well.

    In Bucharest, students have left many empty properties, apartments previously rented per night have been converted into apartments with monthly rent and the number of rental offers in the market began to grow.

    The value of rents remains the main factor for tenants when choosing a rental or another.

    In the current uncertain context created by the Covid-19 pandemic, tenants are looking for security, either by reducing the rent or moving to a smaller space, either by reaching a longer-term agreement with the owners or registering contracts at the National Agency for Fiscal Administration (ANAF).

    Compared to the previous crisis from 2008-2009, lease registration ensures owners binding, enforceable documentation, facilitating money recovery from tenants.

    Beyond the cost of the monthly rent, most respondents who consider it more profitable to rent than to buy their home are also looking for certain functionalities that suit their needs and lifestyle, such as parks, green spaces and playgrounds located in proximity, which have become almost as important as the access to public transport.

    If the proximity to a supermarket has always been a priority, top preferences this year also include pharmacies, which are requested by almost 50% of tenants, according to data from the study requested by Colliers International.

  • Bucharest: More than 90% of tenants paid their rent on time

    Bucharest: More than 90% of tenants paid their rent on time

    Most tenants complied with their contractual obligations to owners of the office buildings managed by Colliers International between July and September, even though many companies operated in a hybrid system, combining remote activity with office presence.

    Thus, the share of tenants who paid their debts on time was 91% in the third quarter of this year, compared to 87% in the same period in 2019.

    In the third quarter of the ”pandemic year”, tenants in class A office buildings also confirm the good intentions and practices in relation to the obligations they have assumed.

    In September, for example, 88% of tenants paid their obligations on time to office building owners, compared to 81% in September 2019, when business activities were not hit by the crisis caused by the COVID-19 pandemic.

    Even though they have been the most affected lately, more than a third (76%) of retail tenants have managed to comply with their contractual obligations, which include rent, utilities and service costs, and paid them on time in the third quarter of the ”pandemic year”, a slightly higher percentage compared to the same period in 2019.

    Also, tenants of the industrial spaces managed by Colliers International mostly tried to pay their obligations on time, the number of companies that were able to comply with all contractual obligations between July and September of this year being smaller, compared to the same period in 2019, but the share of tenants who paid their debts on time remained over 80%.

  • Rents up by 14.2%, house prices by 25.0% since 2010 in EU

    Rents up by 14.2%, house prices by 25.0% since 2010 in EU

    Over the period 2010 until the second quarter of 2020, rents increased by 14.2% and house prices by 25.0% in the European Union, Eurostat reports.

    When comparing the second quarter of 2020 with 2010, house prices increased more than rents in 16 EU Member States.

    House prices increased in 23 Member States and decreased in four, with the highest rises in Estonia (+100.5%), Luxembourg (+85.8%), Latvia (+77.3%) and Austria (+75.9%).

    Decreases were observed in Greece (-31.0%), Italy (-13.2%), Spain (-5.6%) and Cyprus (-3.0%).

    Different pattern for rents

    When comparing the second quarter of 2020 with 2010, prices increased in 25 EU Member States and decreased in two, with the highest rises in Estonia (+135.8%), Lithuania (+105.4%) and Ireland (+62.3%).

    Decreases were recorded in Greece (-25.2%) and Cyprus (-4.8%).

  • Covid-19 impacted rental market in Czechia. Rent fell by 20-30 percent

    Covid-19 impacted rental market in Czechia. Rent fell by 20-30 percent

    • Thousands of flats in the Czech Republic remained empty. Short-term housing fell to zero overnight. 
    • The Czech rental market was flooded with apartments for long and medium-term rent. 
    • Rent in Prague and Brno fell by 20-30 percent.

    Michal Rambousek, the founder of www.tvujspravce.cz, which takes care for the owners of their rental apartments, comments on the situation: “Expats left the country because of the coronavirus crisis, especially Ukrainians, Slovaks, Poles and other foreigners who came here for work. Foreign students and especially tourists left, bringing over 5.000 vacant flats for rent to the real estate market.”

    The coronavirus also waved rental prices. Some tenants have arranged a temporary discount on rent, others have left the apartments for various reasons. 

    How the rental market in Czechia was affected by coronavirus

    Due to the outflow of tourists and expats, a large number of apartments offering lower rents appeared on the market. The market price of rent in Prague and Brno also fell by 20-30 percent. 

    The average rental price for an apartment of 60 m2 in a better location in Prague is around CZK 20,000.

    The largest decline in rents was recorded in Prague 1 and 2. It was here that most flats were vacated. These were mainly apartments for short-term rent. 

    From the beginning of March to May 11, 5.458 vacant apartments for rent appeared on various internet servers in Prague alone (data do not include offers for rent from all servers, from Facebook groups, from booking or from Airbnb).

    Some owners of these apartments are now looking for long-term tenants, trying to cover the losses and ensure a regular income from long-term lease.

  • 20.000 first year students will look for accommodation in Bucharest

    After the admission to the 1st year of university, the troubles of the students and the parents from other cities are about start. Given that only 18% of these students find accommodation in the university dorms, more than 20.000 will have to resort to private campuses and rent.

    According to the data provided by the National Institute of Statistics and UEFISCDI for the university year of 2018/2019, in Bucharest there are 50.972 students enrolled for the first year – bachelor and master degree, day courses.

    The dynamics of Bucharest as a University City

    According to the data published by the National Institute of Statistics and UEFISCDI

    • 168.000 students study in the university centre of Bucharest; 129.000 of them  study in state universities
    • 37.000 accommodation places are available in the dorms of the universities
    • 5.500 accommodation places are available in private dorms and campuses
    • 37. 000 students are admitted to the 1st year of faculty; 33. 500 of them will attend day courses.
    • 9.000 first year students are from Bucharest and they do not need accommodation.
    • 18% of first year students are provided with accommodation in the dorms of the universities. The list of the students who will get accommodation will be made public in the second half of the month of September.
    • More than 20.000 first year students look for accommodation in private campuses or rented apartments.

    Private campus or rent?

    In Bucharest there are several private dorms and two private student campuses. The most important student housing operator in Bucharest is Arcca Student Housing which offers more than 2.600 accommodation places in single, double, and triple rooms. The prices range from 123 to 320 Euros/person per month, the sum is to be paid monthly and it includes all the expenses.

    “When teenagers get ready to go to college and leave home, this is what they dream of:  a typical student life. New colleagues, jokes, socialisation, mutual support, permanent exchange of ideas. Most probably, nobody dreams of an apartment in a block of flats where they have to live alone. Thus, we ensure both the social context young people look for and the safety parents want for their children”, says Anamaria Dunca, General Manager of Arcca.