Cost of renting in Spain up 0.6% in August
In August 2021, the cost of renting Spanish property had an average cost per square metre of 9.763 euros per month. This represents a monthly increase of 0.62%, and an annual variation of -1.97%.
“Although renting is somewhat cheaper than last year, month by month we see how the monthly payments recover ground”, said Ferran Font, director of studies de piso.com. Font said he does not want to brand this slight upward movement as a trend because there are still variables that push incomes to adjustment: “Until the context normalizes in the main capitals, which are the ones that condition the evolution of this indicator, it is better to be prudent and trusting that the movements that take place are progressive”. While this change in tone is taking place, “tenants who are renting for the first time or are changing their home should take the opportunity to negotiate the price, in order for it to adjust to the market”.
Font also points out that, after reaching herd immunity in Spain at the end of the summer, “we will see how many teleworkers leave their remote locations and return to their offices in person. This small exodus to the big city will likely result in price increases”. On the other hand, “the transfer from tourist to residential rental is gradually being reversed, which compromises the offer and, therefore, also increases rents”. In any case, Font indicates that “the rental market will walk in parallel with the economic situation of the country, faithfully reflecting its ups and downs.”
Madrid is the Most Expensive Community
The monthly data revealed that the most expensive regions to rent in August 2021 were Madrid (€12.49 p/m²), the Balearic Islands (€11.40 p/m²) and Catalonia (€10.81 p/m²), while the cheapest rents were found in Castilla y León (€4.57 p/m²), Extremadura (€5.36 p/m²) and Galicia (€5.45 p/m²). The most significant increase in the cost of renting property in Spain was seen in Navarra (2.63%). The most notable fall in rental prices occurred in Cantabria (-3.02%). Compared to last year, Catalonia (8.19%) was the one that increased the most and Asturias (-13.33%) the one that decreased the most. Andalucia saw an increase in the cost of homes for rent of 1.1%.
When looking at the cost for renting by province, in August 2021 the first position was taken by Madrid, with 12.49 euros per square meter. They were followed by Guipúzcoa (€11.91 p/m²) and Barcelona (€11.60 p/m²). On the opposite side, Cuenca closed the ranking with 3.48 euros per square meter. Other cheaper provinces include Ávila (€3.58 p/m²) and Toledo (€3.83 p/m²). The province that saw the most notable increase in the last month was Huelva (3.08%), while the one with the largest fall was Vizcaya (-3.27%). From one year to another, the highest registered increase was that of Almería (12.67%). The income that most adjusted was that of Valencia (-15.72%).
Donostia-San Sebastián was the Most Expensive Capital
As for the provincial capitals, Donostia-San Sebastián was the most expensive for tenants with 16.50 euros per square meter. They were followed by Barcelona (€16.25 p/m²) and Madrid (€15.34 p/m²). Meanwhile, Zamora was the cheapest with 5.31 euros per square meter. Other cheaper provincial capitals were Lugo (€5.83 p/m²) and Cuenca (€5.85 p/m²). Pamplona (3.04%) led the monthly increases, while Zamora (-7.83%) was the capital that was devalued the most in this period. Compared to August 2020, Alicante (9.89%) led the increases. The most striking cut was made by Palma de Mallorca (-12.87%).
