Average rental price for housing in Spain up by 17% in October
Prices in Asturias, Castilla y León and the Basque Country have shot up by nearly 30% in the past year, while the most expensive regions are Madrid, the Balearic Islands and Catalonia
Access to housing continues be one of the main problems for people living in Spain. Given the data released on a monthly basis, it doesn't seem to give respite. The latest report from Pisos.com reveals that the average price of rent in Spain rose by 17.2% in October compared to this time last year. This is also 1.1% more than last month. The average price stands at 14 euros per square metre.
The real estate portal points out that the rise in rents is shaping a market that is "increasingly tight" and that the lack of supply explains why prices are soaring. "Rental demand continues to be eminently urban," the report says. Although some tenants are moving to the outskirts of cities and towns, locations with poor connections rarely become attractive supply.
By regions, Asturias, Castilla y León and the Basque Country have seen the highest increase, with an up to 30% rise in the last year. The most expensive regions remain Madrid (21.50 euros per square metre), the Balearic Islands (18.50) and Catalonia (16), while the cheapest rent in October could be found in La Rioja, Castilla y León and Extremadura, where prices were around six euros per square metre.
As for possible market intervention, Psisos.com says that "the owner cannot be punished before being offered alternatives". The real estate portal's report states that "imposing surcharges on empty homes may accelerate their release to the market, but perhaps not as a residential rental product but as properties for sale that will be quickly absorbed by investors". According to Pisos.com, "maintenance will be reduced to a minimum, worsening the stock", if such flats "are put up for rent". The report assesses as urgent the need to find a solution to "the clash between supply in high-demand areas, which is not growing at the necessary pace, and other supply that remains vacant or underused".
On a monthly basis, the most notable increase happened in La Rioja (2.6% compared to September), while prices fell only in Murcia, by less than 0.8%. By province, Badajoz (2.9%) saw the highest rent increase in October, while the province that saw the biggest drop was Almeria (-2.7%). Year-on-year, the largest increase was recorded in Guadalajara (29.9%), while only Santa Cruz de Tenerife (-0.5%) reduced rental prices.
