And the winner of the most expensive cities to rent in Europe is…..London!
In a recently published report London topped the list of the most expensive cities. Moscow and Zurich came second and third. At €6,300 per month for a 3-bedroom apartment in a prime area London is over 3 times higher than the European Average.
London comes in twice as expensive as Paris. The divide between London and the rest of the UK is made clear also in the report as we learn that London rent is on average 4 times higher than other major UK cities. London rents has been rising year on year for some time now whilst other parts of the UK are stagnant and some even gradually falling.
On a global basis it appears the weakness of the UK Pound has meant it has fallen down in global terms to 5th place. A new entrant into the top 10 most expensive cities in Europe is Dublin. It comes in at 8th place (average €3,000 per month).
Brexit may be partly affect this. Thus we see increased demand due to relocation of international companies from the UK to European hubs.
Rental costs in each location are based on mid-market professional accommodation in “prime areas”. Those are assessed on things like, e.g. safety, popularity among expatriates, commuting times and amenities nearby.
Within the UK changes to stamp duty in 2016 led to increased demand from landlords. Consequently they purchased buy-to-let properties before the change was implemented. This increased the supply of rental accommodation across prime areas of London. This created more competition among landlords. This in turn has contributed to the modest falls in average rent in the UK capital.
Do you like to own some real estate in one of the most expensive cities in Europe too?