Rental prices in Spain reach historical highs

The average monthly price of rental properties in Spain has risen to 10.89 euros/m2. For the last number of months, everything from gas and electricity to fuel and groceries have been on the rise and the property market is continuing this trend, with the price of rental homes in Spain increasing by 4.7% year-on-year, meaning that in April, properties cost an average of 10.89 euros/m2 per month. This is just a stones throw away from the highest value of 11.02 euros registered in the same month of 2020.

We are once again entering the maelstrom of price escalation, after the only and largest drop in the last 5 years that we detected in 2021, explained Maria Mator, Director of Studies and Spokesperson for Fotocasa, who pointed out that April marks a turning point in the evolution of rental prices, since in many regions of Spain the cost increase has already surpassed the highs of 2007.

Experts believe that the huge price hike is not only due to inflation, which has also reached record highs in Spain, but also a lack of supply on the market, which gives landlords the power to increase rents.

Prices vary across Spain depending on the demand, but the largest rise has been registered in the Valencian Community, where the increase exceeds 15% year-on-year. Additionally, while inter annual rental prices jumped up in 94% of municipalities across Spain, the city of Alicante has experienced the most pronounced increase, 21.7%.

Catalonia and Madrid remain the most expensive autonomous communities in all of Spain to rent a home, with prices of 14.60 euros/m2 and 14.55 euros/m2 per month, respectively.

Source: Spain News Today, May 2022