11 October 2016 – El Economista
The average rental price in Spain amounted to €661 in September 2016 for an average surface area of 112 sqm, according to the quarterly rental price report prepared by pisos.com.
In comparative terms, this figure represents an increase of 0.3% compared with the month of August and a rise of 5.09% with respect to June. Moreover, the YoY increase amounted to 9.26%.
By autonomous region, the highest rental prices were recorded in the regions of Madrid (€1,040/month), País Vasco (€936/month) and the Balearic Islands (€845/month), according to the report.
Meanwhile, the lowest rents were recorded in Extremadura (€429/month), Castilla-La Mancha (€442/month) and Galicia (€477/month).
Between June and September, the highest regional increase was registered in Cantabria, where rental prices rose by 10.54% and the largest decrease was seen in Asturias, with a decline of 1.03%.
The autonomous regions that recorded the highest increases with respect to the same period last year were the Community of Valencia (15.25%), the Canary Islands (12.75%) and the Balearic Islands (12.67%). No decreases were recorded in any region during the same period.
“The interest in acquiring homes in strategic places with a high return will encourage greedy investors, who are already very active”, said the CEO of pisos.com, Miguel Angel Alemany, referring to this increase in the price of rental homes.
In addition, Alemany said that an increase in the available supply could help to mitigate a possible bubble in the rental market. All of this through “more moderate” prices, he added.
Teruel: the cheapest province
According to the report, Guipúzcoa led the ranking as the most expensive province to lease a home in September 2016, with an average price of €1,090/month. It was followed by Madrid (€1,040/month) and Vizcaya (€936/month).
At the opposite end of the spectrum, Teruel was the cheapest province, with an average price of €372/month. Other less expensive provinces included Ciudad Real (€376/month) and Cáceres (€392/month).
The province that saw prices rise by the most during the third quarter was Huesca, with a 12.82% increase in rental prices, whilst Córdoba was the province that saw prices decrease by the most (-6.08%).
Nevertheless, in YoY terms, the province where rental prices increased by the most was Guipúzcoa (20.98%) and the province where rental prices decreased by the most was Burgos (-4.99%).
Barcelona: the most expensive provincial capital
By provincial capitals, the study named Barcelona as the most expensive provincial capital for tenants, with an average rental cost of €1,425/month.
Madrid was ranked in second place, with an average price of €1,405/month during the third quarter of the year. It was followed by San Sebastián where the cost was €1,301/month.
Meanwhile, Teruel was ranked in last place with an average price of €387/month.
Other cheap provincial capitals included Lugo (€405/month) and Ávila (€410/month). Tarragona (19.22%) recorded the highest QoQ increase, whilst the highest QoQ reduction was seen in Palencia (-5.67%).
On a YoY basis, Girona (20.80%) led the ranking with the highest increase in prices and Pontevedra (-4.55%) was situated at the opposite end of the table.
“If this upward trend in terms of rental prices continues, it will become increasingly difficult for tenants to find homes that they can afford”, said sources at pisos.com.
Original story: El Economista
Translation: Carmel Drake