The price of housing for rent in Spain increased by 0.5% during the third quarter of 2017. This leaves the average price per square metre at 9.4 euros per month. The annual variation is +24%, according to the latest report from Idealista.
Fernando Encinar, head of idealista studies, says “The end of summer brings with it some moderation in the evolution of rental prices. The double-digit increases experienced in the first half of the year disappear in this quarter and the differences between markets are further marked. The two speeds become more apparent even within the cities themselves. In Madrid, for example, renting a house within the M30 is, on average, 47% more expensive than doing it outside, where it is still relatively easy to find cheap rents.
At idealista, far from seeing the situation as worrying or thinking of a potential bubble, we believe that the rental market is bullish but flexible, with a ceiling. The demand cannot exceed the price and those owners who overprice will have no choice but to lower their expectations in order to find a tenant. Demand remains very strong and still higher than the available housing stock.”
11 autonomous communities now have higher prices than they did three months ago. The highest increase has been recorded in the Canary Islands where prices have grown by 3.8% since June. Other communities to see an increase are Madrid (3.7%), Catalonia (3.1%), Euskadi (1.7%) and Navarra (1.4%). The largest fall during the third quarter was seen in the Balearic Islands where prices fell by 5.9%.
The most expensive community to rent is Catalunya with an average monthly cost per square metre of 14.5 euros. The next most expensive are Madrid (14 euros) and the Balearic Islands (12.7 euros). The cheapest communities are Extremadura (4.2 euros), Castilla-La Mancha (4.6 euros), Galicia and La Rioja (5.3 euros in both cases).
26 of Spain’s provinces saw rental prices increase over the summer. The biggest change was recorded in Sevilla where prices have increased by 5.8% since June. Also registering significant increases in rental costs over Q3 were Ourense (5.6%), Álava (4.8%), Las Palmas (4.5%), Madrid (3.7%) and Barcelona (3.6%).
The largest falls occurred in Huelva (-7.9%), followed by the Balearic Islands (-5.9%), Badajoz and Murcia (-3.6%) in both cases.
The ranking of the most expensive provinces is headed by Barcelona (16.3 euros/m² per month), Madrid (14 euros/m²) and the Balearic Islands (12.7 euros/m²). Ávila has the lowest rental costs, with an average price of 3.9 euros/m² per month. They are followed by Jaén (4 euros/m²) and Cáceres (4.1 euros/m²).
In Valencia, rental property owners have upped their prices by 6.1% during the third quarter. In Guadalajara the increase was 6%. Also significant was the rise in Seville, where prices are 5.8% higher than they were three months ago.
Badajoz recorded the biggest drop (-6.2%) among the 12 capitals that have seen their rental costs fall this summer. Following are falls in Salamanca (-4.1%), Palma and Murcia (-3.3% in both cases).
In the community of Andalucía, rental costs are 1% higher than they were at the end of the second quarter. Compared to the same period in 2016 the variation is +13%.
The province of Málaga has seen rental prices fall by 0.7% over the the summer. However, on the annual variation the change is +15.4%, giving an average cost per square metre, per month of 9.1 euros. This time last year the price was 7.9 euros.
In Marbella the cost of renting a property has fallen by 4.8% during the third quarter. When compared to September 2016 the variation is +9.2%, leaving the monthly average price per square metre at 11.5 euros. In September 2016 the price was 10.6 euros.
Estepona saw a similar situation. The average price at the close of Q3 was 9.3 euros, a quarterly fall of 0.7%. However, on the annual variation prices have increased by 9.8%. This leaves the average rental cost per month, per square metre at 9.3 euros. This time last year the cost was 8.5 euros.