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Fotocasa: The Residential Rental Market Takes Hold In Spain

30 May 2016 – Expansión

The evolution of average residential rental prices in Spain changed significantly in 2015. In fact, it was the first year during which rental prices increased YoY across 16 autonomous regions since Fotocasa’s Real Estate Index began to analyse rental prices, nine years ago. The annual variation recorded at the end of 2015, 3.6%, was also the highest ever registered in the history of the index. “This general increase in prices is the result of the expansion that the rental market in Spain experienced in 2015; people are increasingly renting, not only because they cannot afford to buy homes, but also because there has been a change in mentality in favour of renting”, said Beatriz Toribo, Head of Research at the real estate portal. “Moreover, the high returns being offered in this market have led many investors to buy homes with a view to renting them out”, added Toribio.

Cataluña was the autonomous region that experienced the highest price rises (during 2015), of 10.7%. Rental prices rose in all 10 of Barcelona’s municipalities. The average price there amounted to €13.3/sqm/month. In the Community of Madrid, the annual variation at the end of 2015 was 6.5%, the highest increase in the series’ history. In the case of Madrid capital, prices rose by 6.9% and the average rental price amounted to €11.2/sqm/month. Moreover, for the first time in nine years, rental prices rose in every district of the Madrilenian capital. “In general, prices are forecast to stabilise during 2016 because the rental market is here to stay in Spain”, concluded Toribio.

Original story: Expansión

Translation: Carmel Drake