Rental costs experienced a rebound in Spain in 2016 and ended the year with a 15.9% increase. This leaves a square metre of rental property with an average price per month of 8.2 euros.
Fernando Encinar, head of idealista studies, says that “This huge increase in demand is still not accompanied by a similar increase in supply, which is actually reducing what drives prices up. It is not in any case a bubble but a notable increase in the interest of Spaniards to rent in certain cities. Also, during the crisis rent prices were more stable because the contracts had been signed years earlier and they are now being renewed and owners can increase the rent, which in any case remains at reasonable levels if we compare the large Spanish markets with most of the European capitals. In any case the rent has a ceiling. There comes a moment that although the owners intend to increase their rental incomes the market prevents them.
“Although the increases seem to be across the country, the numbers show they are not uniform with larger markets where demand is higher seeing larger price increases. However, the data also shows that the pressure on prices in large cities is now moving to the surrounding areas, where prices are in many cases higher than those in the cities.”
Autonomous Communities
All the communities recorded increases in rental costs when compared to the previous year. The biggest increase was seen in Catalonia where owners are now seeking 26.8% more than they were in the previous year. Madrid has seen prices increase by 18%, while in the Balearic Islands prices have risen by 13.8%. The lowest increases were seen in Extremadura (+1.1%), followed by Murcia (1.7%) and Castilla La Mancha (2.4%).
Catalonia becomes the most expensive community to rent property with an average monthly cost of 13.3 euros/m². It is followed by Madrid (12.9 euros/m²) and Euskadi (10.4 euros/m²). On the opposite of the scale are Extremadura (4.1 euros/m²), Castilla La Mancha (4.5 euros/m²) and Murcia (5 euros/m²).
In Andalucia the average cost per square metre per month is 6.4 euros, an annual increase of 4.9%.
Provinces
Eight provinces saw rental costs fall in 2016. The largest decline was in Tarragona, where prices have fallen by 6.3%. The largest increases were seen in Barcelona (23.4%), Guipúzcoa (18.1) and Madrid (18%).
Barcelona ranks as the most expensive province with an average monthly cost per square metre of 15.3 euros. Madrid follows with an average price of 12.9 euros per m² per month. In the Balearic Islands the average price is 10.2 euros.
The cheapest monthly rents of all the provinces are to found in Jaén (3.6 euros/m²), Avila (3.8 euros/m²) and Lugo (4 euros/m²).
In the province of Malaga, the average cost now stands at 8.1 euros per square metre per month. This represents an increase of 10.2%, when compared to the previous year.
In the city of Malaga prices are up 11.4% to stand at 8.6 euros per m², per month.
