Posted on April 26, 2016 in Property
Data from the latest real estate index published by property portal, fotocasa, shows that the average price of homes for rent in Spain increased by 3.1% in the first quarter of the year, placing the price in March at 7.24 euros/m2 per month. This quarterly increase in rental housing prices continues the trend initiated during 2015, which followed eight years of widespread declines.
In fact, the advance registered in the first quarter of this year is the most significant increase recorded in this real estate index since the first quarter of 2007, when rental prices increased by an average of 4.9%. Since then, the quarterly rental prices have mostly fallen, with just a few exceptions in certain quarters of 2011 and 2014. In 2015 quarterly rental prices began to rise again, registering increases of 2.8% and 1.5% in the first and second quarters of the year, respectively.
In the first quarter of this year, home rental prices registered increases in 11 of Spain’s regions at the quarterly level, with rises ranging from 6% in the Balearic Islands to 0.8% in Andalucía. In contrast, six regions registered declines in rental prices in the first quarter, ranging from -3% in La Rioja to -0.1% in the Canary Islands.
Year-on-year, increases were experienced in all regions, and in the first quarter, the increase was 4%, representing the second highest record increase in fotocasa’s real estate index which began in 2006.
Since home rentals reached their maximum price levels in May 2007, of 10.12 euros/m2 per month, prices have accumulated a decline of -28.5%. Regions which recorded declines in excess of -30% since their maximum levels are: Aragón (-40%); Castilla-La Mancha (-35.6%); Cantabria (-35.3%) and Valencia (-31.9%).
With regard to the ranking of prices, for the first time in recent years Catalonia overtook the Basque Country as the most expensive region in which to rent a home, with the average price in March standing at 10.19 euros/m2 per month, followed by the Basque country (10.18 euros/m2) and Madrid (10.08 euros/m2). In contrast, the two regions with the most affordable home rental prices are Extremadura (4.46 euros/m2) and Castilla-La Mancha (4.66 euros/m2).