The ERA Rental Market report predicts steady growth in Europe over the next few years

According to a market report published by the European Leasing Association (ERA), the leasing market in Europe is beginning to normalize and will achieve steady growth in the coming years.

According to the ERA Market Report 2024, the European rental market is expected to grow by 0.9% in 2024, 2.8% in 2025 and 3.6% in 2026. While it described growth as stable, it warned that interest rates and general uncertainty were directly affecting residential markets in EU countries.

However, it added that EU investments through the National Recovery and Resilience Plan (NRRP) are expected to boost leasing activity in Europe.

"Rental penetration in the European rental market has steadily increased over the past few years, reflecting customers' increasing preference for leasing rather than purchasing equipment and tools," ERA said.

"Leasing provides modern equipment, flexibility and cost effectiveness as it reduces capital expenditure requirements, fixed cost of ownership and salvage value risk, while allowing customers to adapt to changing needs and project requirements."

The report was prepared on the basis of annual turnover data from the Nomenclature of Economic Activities (NACE) published by Eurostat (Eurostat) two years ago.

The economic and construction activity forecasts in the report are derived from proprietary data from the European Commission (including the European Construction Sector Observatory - ECSO - and the Building Stock Observatory - BSO), the Federation of the European Construction Industry (FIEC), Euroconstruct, S&P Global and KPMG.