There are aspects of the Spanish economy that, paraphrasing the President of the Government, Pedro SánchezYes, they go like a rocket. But not in the positive sense in which the Chief Executive pronounced the phrase. Irene Montero, head of the Podemos list for the European elections, replied to Sánchez that “what is going like a rocket in Spain is the price of housing.” And it couldn't be more true. He rentWithout going any further, it has been going at full speed and without brakes for years.
According to an analysis carried out by the real estate website Photohousein the last ten exercises, the accumulated increase in income reaches 78%. Thus, Spaniards had to pay an average of 553 euros per month in April 2014 (the average price was then 6.91 euros per square meter per month) compared to the 984 euros per month that were paid on average in April of this year (last month, the cost had risen to 12.30 euros per square meter per month).
“We are witnessing the greatest increase in rental prices in recent years,” he says. María Matos, Head of Studies at Fotocasa. Matos explains that the cost of rent has risen significantly since the economic recovery due to the promotion of rental housing as the main housing solution after the financial crisis of 2008. «The reactivation of demand in the face of the existing supply deficit has led to a price tensions that have become increasingly intenseuntil exceeding the price recorded in the 2007 real estate bubble by 33%,” says the Director of Studies and spokesperson for Fotocasa.
In the case of the offer, the approval of the Housing Lawwhich celebrates its first anniversary, has led to a massive flight of housing from traditional rentals to other modalities such as temporary, tourist or room rentals. Fotocasa calculates that supply has plummeted by 25% due to the approval of the regulations in a context of strong and increasingly unsatisfied demand. According to your data, Tenants searching and not finding a rental have gone from 13.5% to 16.5%. And those who believe that the Housing Law will make it more difficult for them to find a rental have risen from 35% to 36%. As Matos assures, “there is more unsatisfied demand than ever.”
Balearics
Although the increase in rents has been widespread in all of them, in some autonomous communities they have grown by more than 150% in just a decade, which indicates “a context of overpriced rents,” according to Matos.
The region to which Matos alludes is Balearicswhere Rental prices have skyrocketed by 158% in just a decade. The price of rental housing on the islands has gone from 7.03 euros per square meter per month in April 2014 to the 18.14 euros it registered last month. Thus, ten years ago, the Balearic Islands had to pay an average of 562 euros per month for a rental of 80 meters compared to the 1,451 euros they must pay now.
The case of the Balearic Islands is extreme in the fragmented Spanish real estate market since there are two peculiarities that tighten their prices significantly. First of all, there is your insular character, which limits the land available for building, restricting supply and putting upward pressure on prices. Added to this is his intense tourist activity, with clients, many of them foreigners; with high purchasing power, which also makes income significantly more expensive.
Along with the Balearic Islands, two other tourist bastions such as Canary Islands -137%- and the Valencian Community -139%- They are the two communities in which rents have increased the most since 2014. The fourth in which rents have doubled is the Community of Madrid -103%-.
In Madrid capitalwhere the rent has increased by 94.1% in the last ten years, the data that Fotocasa has recorded assure that it has twenty-three consecutive months with sharp increasesin double figures, currently reaching historical highs and 50% above the data that it marked in the middle of the real estate bubble, in 2007. «The ease of sale, inflation rates and intervention in the market (by the Housing Law) have caused the flight of long-term rental housing to temporary, tourist or room regimes that have caused the stock is at historic lows” in the capital, according to Matos.
Estepona is the city where income has grown the most
Madrid is not, however, the city in which rents have become more expensive in the last decade. This condition corresponds to the Malaga town of Esteponawhere rents have risen 190% since April 2014, with which they have gone, on average, from 446 euros per month to 1,297 euros. The second is Gandía from Alicante (185%), followed by Mijas from Malaga (167%) and Benalmádena from Malaga (159%).
As for the main Spanish citiesthe increases in Palma de Mallorca (155%), Valencia (150%), Alicante (126%), Málaga (124%) and Barcelona (106%) stand out.
Among the cities analyzed by Fotocasa, the one where rents have increased the least has been Jaén (20.3%), followed by Córdoba (33.6%), Ponferrada (36%), León (44.8%) and Reus (45.3%). Castilla-La Mancha (46%) is the region in which rents have risen the least in the period, followed by Extremadura (49%) and Aragón (53%).