24 February 2017 – Expansión
The price of rental housing in Spain rose by 1.7% in January to €7.61/m2/month, according to data from the real estate portal Fotocasa. This figure represented the most pronounced monthly increase since December 2007, when prices rose by 1.8% with respect to the previous month.
In addition, the price of rental properties increased by 7.9% YoY with respect to the same month in 2016. This data also represents a record, in line with the monthly one, given that it represents the largest YoY rise since 2007.
“The rental market is experiencing significant tensions in terms of prices as a result of greater pressure on demand, given that despite the reopening of the credit tap by banking institutions, many Spaniards are unable to access financing and are being forced to seek refuge in rental properties as their only means of accessing a home”, said Beatriz Toribio, Head of Research at Fotocasa.
Ten autonomous regions saw increases in their rental prices, with rises ranging from 1.7% in Cataluña to 0.2% in the Community of Valencia. By contrast, seven autonomous regions saw decreases in their rental prices in January. The decreases ranged from -0.4% in Castilla y León to -1.5% in La Rioja.
Barcelona is the most expensive city
The most expensive city to rent a home in January was Barcelona at €15.25/m2/month after prices rose there by 13% YoY. It was followed by Ibiza (€13.81/m2/month), Sant Cugat del Vallès (€13.47/m2/month), San Sebastián (€13.15/m2/month) and Sitges (€13.06/m2/month).
At the other end of the spectrum were Lucena in Córdoba (€3.35/m2/month), Fuensalida in Toledo (€3.40 /m2) and Almendralejo en Badajoz (€3.42/m2/month), as the cheapest towns in Spain to rent a home.
Original story: Expansión
Translation: Carmel Drake