17 January 2017 – Expansión
The price of rental housing underwent a recovery in Spain in 2016, ending the year 15.9% higher than it started it, taking the price per m2 to €8.2/m2/month. The rate of growth accelerated during the last month of the year, as prices increased by 8.2%.
Fernando Encinar, Head of Research at Idealista, said that “this is not a bubble but rather a significant increase in demand from Spaniards to rent in certain cities.
The Director of Idealista said that to encourage the growth of the rental market “policies to revitalise the sector must continue and new measures must be adopted to help to increase the housing stock”.
By autonomous region
All of the autonomous regions saw higher prices than a year ago. The largest increase was observed in Cataluña, where owners are now demanding 26.8% more to lease their homes than a year ago. It was followed by increases in Madrid (18%) and the Balearic Islands (13.8%).
Cataluña (€13.30/m2/month) also became the most expensive autonomous region. It was followed by Madrid (€12.90/m2/month) and Euskadi (€10.40/m2/month). At the opposite end of the spectrum, we find Extremadura (€4.1/m2/month), Castilla La Mancha (€4.5/m2/month) and Murcia (€5/m2/month), the cheapest autonomous regions.
By provincial capital
Valencia is the capital where rental prices grew by the most in 2016, with an increase of 20.3%, to €7.5/m2/month.
The increase recorded in San Sebastián was also noteworthy, with prices up by 17%, followed by Barcelona (16.5%) and Madrid (15.6%), which have returned to their historical peaks.
Barcelona consolidated its position as the most expensive Spanish capital (€17.9/m2/month), followed by Madrid (€14.4/m2/month) and San Sebastián (€13.6/m2/month). At the opposite end of the table, we have Lugo (€4.1/m2/month), and Ourense and Ávila (€4.3/m2/month in both cases), the cheapest provincial capitals.
Original story: Expansión (by Rubén San Isidoro)
Translation: Carmel Drake
Source:: AURA Real Estate Experts