4 January 2018 – Eje Prime
The price of rental homes is continuing to rise. The residential rental sector ended 2017 with an average price increase of 18.4%, to reach €9.7/m2/month, according to the latest report from Idealista. The fourth quarter saw a slow down in the rate of growth, given that prices only rose by 3.3%. Barcelona and Cáceres were the only cities where rental prices fell during Q4, by 2.4% and 1%, respectively.
“2017 was undoubtedly the year of the rental market in Spain. Between January and September, the sector grabbed the headlines and was a popular talking point amongst the general public. Prices rose in general across the whole of Spain, although the upward trend was curbed slightly during the final quarter of the year”, according to the research.
It is worth noting that not rental prices did not increase to the same extent in all markets: the Canary and Balearic Islands, together with the Andalucían capitals of Málaga and Sevilla, and the Catalan city of Girona led the price rises. Madrid, which together with Barcelona has traditionally spearheaded the rental market in Spain, saw its prices rise by half the national average. And Barcelona was the only Spanish capital, alongside Cáceres, to end the year with a decrease in rental prices after four years of YoY increases.
In all of the other provincial capitals, rental prices are more expensive today than they were a year ago. Santa Cruz de Tenerife is the capital where rental prices increased by the most in 2017, with a rise of 22.7% to reach €8/m2/month. The increase recorded in Las Palmas de Gran Canaria was also considerable, where rental prices rose by 22.5%, followed by Girona, with an increase of 20.5%.
Original story: Eje Prime
Translation: Carmel Drake