Posted on June 2, 2016 in Property
The average price of rental housing in Spain increased by 0.8% in April, according to the latest data from property portal fotocasa, and stood at 7.29 euros/m2 per month. This monthly increase in the price of rental housing continues the trend that prevailed during 2015, when rental prices started to rise following eight years of widespread declines.
In April, some 14 of Spain’s regions registered month-on-month increases in rental prices, and year-on-year all regions registered increases. In fact, the year-on-year increase in April, of 4.5%, is one of the most significant rises in recent months.
According to the portal, the rental market in Spain is experiencing strong growth, both in supply and demand, causing the prices to rise throughout much of the country, which they say is due to various reasons such as the strong demand, the impossibility of buying a home for a great part of the population and the high returns offered by rental housing. Moreover, the Spanish are also showing increasing interest in favour of renting a home over buying.
Since rental prices reached their maximum levels in May 2007 (10.12 euros/m2 per month) the price of rental housing has accumulated an average decline of -27.9%. In fact six regions have registered declines in excess of -30% since their maximum levels. The region of Aragón has registered the greatest drop in rental prices (-40.1%), followed by Castilla-La Mancha (-35.5%), Cantabria (-35.2%) and Valencia (-31.4%).
Some 14 regions recorded increases in rental prices in the month of April, ranging from 4.3% in the Balearic Islands to 0.1% in Cantabria. In contrast, rental prices fell in three regions in April: by -0.1% in Navarre and by -0.3% in Aragon and the Basque Country.
In the ranking of prices, Catalonia took first place over the Basque Country as the most expensive region in which to rent, with prices of 10.22 euros/m2 per month and 10.15 euros/m2 per month, respectively, followed by Madrid (10.13 euros/m2 per month), while in contrast, the regions with the most affordable rental housing are Extremadura (4.50 euros/m2 per month) and Castilla-La Mancha (4.67 euros/m2 per month).