16/10/2014 – El Economista
According to the Spanish Institute of Statistics (abbreviated to INE), the cost of renting a home in Spain has been falling over the past 18 months with this September being the last to show a negative development.
Thus, the ninth month of the year showed a 0.7% decline in prices year on year. Calculating an average from the first months of 2014, the fall posts 0.6%. The data stands in oppostition to other property sales statistics as they claim that both transaction number and values went up.
By the end of 2008, rental prices were only rising at an average pace of 4% annually. Since the end of that year onwards, renting costs moderated at an increase of 1% yearly, showing the same rate in 2010 and 2011.
As a consequence of deepening recession effect, rentals did not climb anymore. In fact, since March 2013, they have been gradually decreasing and right now the inflation postitions around -1%.
Recovery at the end of the year
In spite of the continuous slump, experts believe a delicate rebound will occur at the end of the year because of the taxation reform. From January 1st on, tenants changing their home will be deprived the right to tax deduction. In turn, the landlords will lose their incentive for renting to the young people.
Therefore, specialists expect the autumn to be unusually active in terms of rentals and they foresee futher fall in rental prices from January.
Original article: El Economista (by Inés Calderón)
Translation: AURA REE