Home rentals are getting cheaper in Spain
In Spain, as of June this year, rental rates decreased by 5.6% on an annualized basis. Now, as of the end of June, you can rent real estate in the country with an average rental rate of 10.7 euros per square meter. The most significant decline in value occurred in Barcelona, Madrid, Palma and Málaga. On an annualized basis, rental rates in these cities decreased by 13.2%, 12.4%, 8.5% and 8.1%, respectively.
According to Francisco Iñareta, spokesman for the Spanish real estate portal Idealista, stocks during the pandemic have become a key factor in determining rental prices. In this situation, it becomes especially important to know how they will develop in the near future — this will help to predict changes in the cost of rent. One way or another, according to the expert’s forecasts, the country’s policy, which is increasing the supply on the market, will lead to a decrease or containment of rental prices. At the same time, the introduction of any punitive or coercive laws can provoke results that are far from desired, causing a reduction in inventory and lower rental costs.
Growth of rental rates, despite the general decrease in tariffs in the country as a whole, was recorded in 11 autonomous regions. The most significant rise in prices occurred in Cantabria and La Rioja: in the firstm by 5.2%; in the second, by 4.9%.
The Balearic Islands, on the other hand, saw the most significant decrease in rental prices over the past year: by 10.7%. They are followed by Madrid and Catalonia, where prices fell by 10.5% and 9.3%, respectively. Nevertheless, these regions remain the most expensive for renting real estate — in the first, the rent of one square meter is estimated at 13.7 euros; in the second, at 13.4.
In terms of high costs, the following are also in the lead:
- Basque Country (rent per «square» — 12.1 euros);
- Balearic Islands (11.7 euros);
- Canary Islands (10 euros).
The lowest rates are set in Extremadura and Castile-La Mancha: you can rent housing in these communities for 5.4 and 5.9 euros per square meter, respectively.
Over the past year, there has been an increase in rental prices in all 36 provinces of Spain. The most significant price increases were recorded in Cuenca, Pontevedra and Palencia — by 11.7%, 8.9% and 7.3%, respectively. Rents decreased significantly in the Balearic Islands (-10.7%) and Madrid (-10.5%).
The most expensive provinces for renting real estate are Barcelona and Madrid. In the first, one «square» costs 13.9 euros; in the second — 13.7. In the ranking of the most accessible provinces, Jaén is in the lead, where one square meter of rental housing is estimated at 5 euros.
The most significant increase in rental prices over the past 12 months was recorded in Cuenca, by 10.8%. It was followed by Melilla, Soria and Almeria, where rents jumped by 7.5%, 7.2% and 7%, respectively.
As for declining prices, they happened in 6 large Spanish cities at the same times, as demand for housing was higher before the pandemic. The most significant reduction in the price of tariffs was established in Barcelona — by 13.2%. It is followed by Madrid and Palma, where the cost of rent decreased by 12.4% and 8.5%, respectively.
The most expensive capitals are Madrid, Barcelona and San Sebastián. In all three, rent goest at 14.5 euros per «square». The cheapest capital city is Ciudad Real. You can rent real estate there at the rate of 5.5 euros per square meter.