The European Rental Association (ERA) is forecasting that rental growth in Europe will be 4.1% this year, which is likely to be a reduction in real terms over 2021 after accounting for inflation.

The ERA’s new 2022 Marker Report estimated growth in rental of 7.9% in 2021 as the market recovered from the pandemic, but is expecting a slowdown this year and next. Despite that, ERA is expecting the market to remain strong through to mid-2023.

ERA estimated that total rental turnover in Europe in 2021 was more than €24.6 billion in the 15 countries covered by the report.

ERA said; “There was growth across all markets [in 2021], with the UK, Germany and France retaining the largest share of the European rental market, comprising about 60% of the total market.

“The market is expected to slow down to 4.1% growth in 2022, in nominal terms, as soaring energy prices, inflation and high interest rates dampen the outlook for businesses and households.

“In volume, this could represent a decrease from 2021 in real terms, with differences among countries depending on the level and impact of inflation. However, the market is projected to remain strong through to mid-2023.”

Longer term, ERA remains positive; “the European rental market will benefit from the economic uncertainty as rental will replace demand for machinery due to increasing price pressures and constant changes in technology and regulations.”