Europe Property Rent Market Now Offers Higher Returns

Other property owners in Europe may wish to consider renting their properties, as real estate leases in Europe seem to be improving again due to the increasing number of property seekers in the capital. In recent months, the supply and demand for rental properties have changed dramatically, and the availability of quality rental properties in Europe has decreased.

Europe, a thriving cosmopolitan city, has long been a favourite place to rent properties. However, the search for adequate property in Europe has become more difficult as the supply of rental housing has decreased due to the increase in “reluctant tenants” according to the Association Of Residential Letting Agents (ARLA).

According to several real estate agents in Europe, including Foxtons, a high-turnover company, more tenants are currently negotiating the extension of their current leases, as there are relatively few alternative rental properties.

The ARLA study, conducted by the owners and owners of the United Kingdom, found that the supply of rental properties has decreased, while the demand for rental housing has increased, partly because fewer people are buying properties. Ian Potter, Operations Manager at ARLA, said: “Many people who can now buy are struggling to find the right property, as there is also a shortage of real estate for sale and realistic mortgages.

Peter Rollings, managing director of a leading Europe lender, commented: Inventory seems to be a problem in the rental market, and it baffles me where all those real estates went. More people are sitting on the fence and choosing not to rent their property because they are waiting to see what happens in the real estate retail market.

The growing demand for tenants also comes at a time when the supply of new residential real estate in the rental market is decreasing. The National Housing Federation reports that the number of new homes in England and Wales this year is expected to fall to its lowest level since 1923.

Real estate developers plan to build fewer than 123,000 homes between April 2009 and March 2010, 18,000 fewer than last year, as most developers have moved away from the context of the recession. This year, the smallest number of new properties will be seen since 1923/4, when only 86,000 houses were built, except the war years.

As demand outstrips supply, we face a new challenge: how to provide enough quality rental properties to meet this demand,” Potter added. The decline in the rental market for real estate in Europe, together with the growing demand for rental properties, is causing a decrease in rental gaps and an increase in rents and yields in much of Europe, an attractive proposition for real estate investors.

Rollings concluded that there is likely to be a resurgence in the rental market this year, as more people are likely to withdraw their money from banks, where they get insignificant and tangible interest rates.

“[The Europe real estate rental market] will not only give people a real return of up to 7 percent, but it will also provide them with medium-term capital growth.” A vision that is reflected in other real estate agents in Europe, such as Savills, who believe that the growth in property prices will far exceed inflation in the next decade.