THE AVERAGE price of rental housing in Spain rose 8.8 per cent in the first quarter of 2017 due to increasing demand, according to the rental price evolution report published on Wednesday by Idealista.
The rise is due in part to a change in the trend of Spaniards, who have made renting their first housing option whilst the rental offering has not experienced a growth similar to that of its demand.
Fernando Encinar, Head of Studies at Idealista commented – ‘one of the consequences of the collapse of the real estate bubble has been that the Spaniards have finally disposed of all the mantras that governed the market for decades, like the much vaunted ‘renting is throwing money’.’
Idealista said that much of the demand comes from people unable to raise the standard deposit to purchase a property – about 30 per cent, according to the real estate portal – in addition to others who opt for rent ‘aware of the sacrifices and risks of signing a mortgage in the long term.’
Rental prices could continue to rise, according to Idealista forecasts, given the improvements in the economy and job creation prospects.
The average national price per square metre stands at €8.9 per month. The Balearic Islands have registered the greatest increase in the ranking of autonomous communities and provinces, of 15.9 per cent.
By autonomous communities, the second to record the highest increase is Madrid, with 5.1 per cent and the Canaries, with 5 per cent. By provinces, the Balearic Islands follow Palencia (+8.8 per cent) and Las Palmas (+7.6 per cent).
The most expensive autonomy is Catalonia, at €13.9 per square metre and the province is Barcelona, at €15.7 per square metre. The cheapest community is Extremadura (€4.1/ m2) and the province is Jaen (€3.6/m2).