Barcelona’s rental market has seen one of the sharpest increases in Europe, with prices for a centrally located three-bedroom apartment now averaging more than €2,300 per month, a rise of 65% since 2020, according to a Deutsche Bank report analysing 67 global cities.

This growth outpaces that of New York, where rents have increased by less than 40% over the same period, despite New York remaining the most expensive city globally for housing. The report, which examined 28 European cities, places Barcelona among mid-tier markets with average rents around €2,500, alongside Madrid, Berlin, Stockholm, and Frankfurt.

Barcelona’s rent surge is part of a broader trend in Southern and Eastern Europe, where costs have climbed fastest. Istanbul recorded the highest increase at 206%, followed by Lisbon (81%), Prague (73%), and Edinburgh (71%). Madrid saw a 59% rise, with central three-bedroom rents nearing €2,500.

Wages lag behind housing costs

Despite rising rents, Barcelona ranks 40th for average net monthly wages at €1,995, and 42nd for quality of life among major global capitals. The widening gap between income growth and housing inflation is eroding residents’ purchasing power, the report warns.

Residents in Barcelona and Madrid are losing purchasing power because wages are rising more slowly than inflation and housing costs.

While housing in Barcelona has become more expensive than in traditionally high-cost cities like Vienna, Rome, and Frankfurt, the city maintains a relatively moderate cost of living in other areas such as utilities, transport, and leisure compared to other major European capitals.

Europe’s widening rental divide

London tops the list for most expensive rents in Europe at €5,088 per month for a central three-bedroom flat. Zurich, Geneva, and Amsterdam all exceed €3,800, while Paris, Munich, Dublin, Luxembourg, and Copenhagen average over €3,000.

At the lower end, Athens offers the cheapest central rentals in Europe at an average of €1,080 per month. Five European cities remain below the €2,000 threshold for three-bedroom central apartments.

Reported by https://www.facebook.com/UNNews, euronews.com, businesstoday.in, ET, Cristina Delgado, rac1.cat.