Renting a House in Most Expensive Areas More Profitable Than Buying

21/01/2014 – El Mundo

According to TecniTasa´s research, in the most expensive city zones it is more reasonable to rent rather than buy a property, while in the minimum price areas it is, obviously, better to buy.

Taking as an example a dwelling of 96 m2, the rent of such house on the Serrano Street would cost  €3.302, whereas the monthly purchase rate would be of €4.992 (€1.690 difference).

On the other hand, prices on the Dos Hermanas Street in Seville show, that comparing €326 rent and €307 purchase quotes (only 19 Euro difference), the purchase is more profitable.

Purchasing Power

(…) Tendency in expensive zones inclines towards purchase demand. In case of cheaper areas, with smaller buying power and worse access to financing, rent is more common.

Taking our 96 square meter model again, in the least expensive areas of the city, like Castellón, purchase and rent have the same price (154 Euros), while in Ceuta or Huesca (Perpetuo Socorro area) the difference is €9 in favor of rent. (…).

Another example, concerning the Paseo de Gracia Street area in Barcelona, would allow a tenant save €1.094. In San Sebastian (on Avenida Libertad, Boulevard, Plaza Guipúzcoa and Hernani Streets), the same tenant would save €1.018.

The most considerable difference amounts are found in Bilbao (€874) between purchase (€2.621) and rent (€1.747), Barakaldo (€845), Valladolid (€807), Santander (€792), Seville (€768) and Murcia (€692). (…).

On the other side, there are 71 places in Spain where the difference between rent and purchase is lower than €50, like Marbella, Palma de Mallorca or Madrid, and also Barakaldo (€164) and Ciudad real (€154).

Top Expensive & Top Bargain

As TecniTasa informs, renting is more expensive in Madrid (Serrano Street), Barcelona (Paseo de Gracia) and Santander (El Sardinero) with prices over €2.000. While the cheapest flats are located in Castellón (behind Estadio), Elche (Carrús District) or Torrent (San Ernesto) demanding less than 200 €/month.

By areas inside the cities, the largest difference in price is observed in Madrid (€2.947), Barcelona (€2.429) and Santander (€2.016). On the contrary, the least significant are those registered in Seville (€269), La Laguna (Tenerife) and Ponferrada (León), with €307 monthly difference.

Original article: El Mundo

Translation: AURA REE