24 March 2017 – Inmodiario
Rental homes on the market for less than 48 hours accounted for 12% of all rental operations closed in Spain during the month of February, according to a study published by Idealista. More flats than ever are now being advertised on the residential rental platform, however, the extensive demand is still not being fulfilled.
The incidence of immediate rentals is not homogenous across all of Spain’s autonomous regions. The pressure from demand is the greatest in the Balearic Islands, where 19% of the homes that were rented in the islands during the month of February were advertised on Idealista for less than 48 hours. It is followed by the Community of Madrid (18%), Navarra (17%), Cataluña (12%), Euskadi (12%), (the latter two are in line with the national average), and below that are Aragón (11%), Andalucía (9%), the Canary Islands (9%) and Galicia (8%).
The bottom end of the table is propped up by Cantabria, the Community of Valencia, Castilla-La Mancha (7% in all three cases), Castilla y León (6%), Extremadura (5%), Asturias, La Rioja and Murcia (4% in all three regions).
The provincial capitals are the areas where demand for rental properties tends to concentrate, therefore the immediate rental rates there are generally higher.
Orense is the city that recorded the highest percentage of immediate rentals as a percentage of total operations, with 33%. It was followed by Albacete and Málaga, with rates of 27%, and then Pamplona and Palma de Mallorca (25% in both cases). Next came the city of Barcelona, where properties involved in 21% of all rental agreements signed had been on the market for less than 48 hours, followed by Ávila (20%) and Madrid (19%).
Nevertheless, the study revealed that the immediate rental phenomenon does not exist in at least 12 Spanish provincial capitals, namely: Teruel, Segovia, Pontevedra, Palencia, Lugo, Lleida, Huesca, Huelva, Girona, Cuenca, Ciudad Real and Castellón.
Of the provincial capitals that do experience the phenomenon, Oviedo and Córdoba saw the lowest incidence of immediate rentals (4% in both cases), followed by León, Granada and Badajoz (5% in all three cities). Moreover, like in the case of the provincial capitals, the main cities in the country have different immediate rental rates depending on the district in question.
In Barcelona, for example, Sant Andreu is the neighbourhood where the most immediate rentals were signed in February: 40% of all the homes that were rented there had been on the market for less than 48 hours. It was followed by Nou Barris (38%), Horta Guinardó (31%) and Gràcia (27%). By contrast, the lowest immediate rental rates were recorded in Sarrià Sant Gervasi (8%), Sant Martí and Ciutat Vella (21% in both cases).
In Madrid, by contrast, the district most affected by this immediate rental phenomenon was Villaverde (31%), followed by San Blas (29%), Latina (28%), Arganzuela, Puente de Vallecas, Usera and Villa de Vallecas (26% in all four cases).
Analysis of the prices of the homes that are being immediately in Spain reveals that one third (33%) cost less than €500/month, whilst 46% ranged between €500/month and €750/month. (…).
Finally, most of the homes that were rented in a matter of hours had a surface area of less than 80 m2: 11% measured less than 40 m2; 31% measured between 41 m2 and 60 m2; and 30% measured between 61 m2 and 80m2. (…).
Original story: Inmodiario
Translation: Carmel Drake