BLOG

Here you will find news, views, events and information relating to real-estate in Spain.

Cost of Renting a Home Increased in August

Cost of renting in Spain up 0.6% in August
Cost of renting in Spain up 0.6% in August

Cost of renting in Spain up 0.6% in August

In August 2021, the cost of renting Spanish property had an average cost per square metre of 9.763 euros per month. This represents a monthly increase of 0.62%, and an annual variation of -1.97%.

“Although renting is somewhat cheaper than last year, month by month we see how the monthly payments recover ground”, said Ferran Font, director of studies de piso.com. Font said he does not want to brand this slight upward movement as a trend because there are still variables that push incomes to adjustment: “Until the context normalizes in the main capitals, which are the ones that condition the evolution of this indicator, it is better to be prudent and trusting that the movements that take place are progressive”. While this change in tone is taking place, “tenants who are renting for the first time or are changing their home should take the opportunity to negotiate the price, in order for it to adjust to the market”.

Font also points out that, after reaching herd immunity in Spain at the end of the summer, “we will see how many teleworkers leave their remote locations and return to their offices in person. This small exodus to the big city will likely result in price increases”. On the other hand, “the transfer from tourist to residential rental is gradually being reversed, which compromises the offer and, therefore, also increases rents”. In any case, Font indicates that “the rental market will walk in parallel with the economic situation of the country, faithfully reflecting its ups and downs.”

Madrid is the Most Expensive Community

The monthly data revealed that the most expensive regions to rent in August 2021 were Madrid (€12.49 p/m²), the Balearic Islands (€11.40 p/m²) and Catalonia (€10.81 p/m²), while the cheapest rents were found in Castilla y León (€4.57 p/m²), Extremadura (€5.36 p/m²) and Galicia (€5.45 p/m²). The most significant increase in the cost of renting property in Spain was seen in Navarra (2.63%). The most notable fall in rental prices occurred in Cantabria (-3.02%). Compared to last year, Catalonia (8.19%) was the one that increased the most and Asturias (-13.33%) the one that decreased the most. Andalucia saw an increase in the cost of homes for rent of 1.1%.

When looking at the cost for renting by province, in August 2021 the first position was taken by Madrid, with 12.49 euros per square meter. They were followed by Guipúzcoa (€11.91 p/m²) and Barcelona (€11.60 p/m²). On the opposite side, Cuenca closed the ranking with 3.48 euros per square meter. Other cheaper provinces include Ávila (€3.58 p/m²) and Toledo (€3.83 p/m²). The province that saw the most notable increase in the last month was Huelva (3.08%), while the one with the largest fall was Vizcaya (-3.27%). From one year to another, the highest registered increase was that of Almería (12.67%). The income that most adjusted was that of Valencia (-15.72%).

Donostia-San Sebastián was the Most Expensive Capital

As for the provincial capitals, Donostia-San Sebastián was the most expensive for tenants with 16.50 euros per square meter. They were followed by Barcelona (€16.25 p/m²) and Madrid (€15.34 p/m²). Meanwhile, Zamora was the cheapest with 5.31 euros per square meter. Other cheaper provincial capitals were Lugo (€5.83 p/m²) and Cuenca (€5.85 p/m²). Pamplona (3.04%) led the monthly increases, while Zamora (-7.83%) was the capital that was devalued the most in this period. Compared to August 2020, Alicante (9.89%) led the increases. The most striking cut was made by Palma de Mallorca (-12.87%).

 

Spanish House Prices Fall 0.2% in August

Property prices in Spain fell slightly in August
Property prices in Spain fell slightly in August

Property prices in Spain fell slightly in August

Second-hand house prices in Spain increased 0.7% year-on-year in August 2021. Compared to July, the price fell slightly with a -0.2% variation. This brings the price per square metre to 1,890 euros, according to data from fotocasa. This last value is the tenth (0.7%) year-on-year rise in house prices after 11 months of year-on-year drops in the chain (from December 2019 to October 2020).

“These figures are a sign that the price of homes for sale in Spain is on the verge of starting a cycle of moderation produced by a lull in activity in purchasing demand. We detect a slight rebound in the price increase this month, which can be explained by the end of the summer period in August. This is a moderate growth that will probably continue with a downward trend and will formalize stabilization in the coming months. We must remember that it is a change of course that was already detected at the end of 2019 after three years of uninterrupted increases in the price of housing,” said María Matos, Director of Studies for fotocasa.

Autonomous Communities

In Spain, 11 autonomous communities presented positive monthly data in August 2021. The increases correspond to: La Rioja (2.0%), Aragón (1.0%), Balearic Islands (0.9%), Cantabria (0.5%), Madrid (0.3%), Navarra (0.3%), Castilla y León (0.3%), Andalusia (0.2%), Extremadura (0.2%), Asturias (0.1%) and Valencian and (0.1%). On the other hand, the Communities with decreases are: Region of Murcia (-0.7%), Basque Country (-0.4%), Castilla-La Mancha (-0.4%), Canarias (-0.3%), Catalonia (-0.2%) and Galicia (-0.1%).

Regarding the ranking of Autonomous Communities with the most expensive second-hand housing prices in Spain, there are Madrid and the Basque Country, with prices of 3,128 euros/m² and 2,872 euros/m², respectively . They are followed by the Balearic Islands with 2,870 euros/m², Catalonia with 2,538 euros/m², the Canary Islands with 1,776 euros/m², Cantabria with 1,752 euros/m², Andalusia with 1,687 euros/m², Navarra with 1,624 euros/m², Galicia with 1,611 euros/m², Aragon with 1,606 euros/m², Asturias with 1,586 euros/m², La Rioja with 1,469 euros/m², Castilla y León with 1,444 euros/m², Valencian Community with 1,426 euros/m², Extremadura with 1,150 euros/m², Castilla- La Mancha with 1,120 euros/m² and Región de Murcia with 1,117 euros/m².

Provinces

In 62% of the 50 provinces analysed, the price increased in the month of August. The provinces with the most significant monthly increases in the ranking are: Huesca (3.0%), Soria (2.1%), La Rioja (2.0%), Ávila (1.6%), Cuenca (1.5 %), Guadalajara (1.0%), Tarragona (1.0%), Zaragoza (1.0%), Huelva (0.9%) and the Balearic Islands (0.9%). On the other hand, the most significant monthly decreases are: Seville (-1.6%), Gipuzkoa (-1.2%), Teruel (-1.1%), Zamora (-1.0%), Las Palmas (-0.8%), Murcia (-0.7%), Albacete (-0.6%), Cádiz (-0.6%), Castellón (-0.6%) and Granada (-0.4%).

Regarding prices, Gipuzkoa is the most expensive province with 3,157 euros/m², followed by Madrid (3,128 euros/m²) and Barcelona (2,972 euros/m²), among others. On the other hand, the province with the price per square meter below 1,000 euros is Ciudad Real with 980 euros/m².

 

Cost of Renting a Home Fell in July

Cost of rental housing down 2.7%
Cost of rental housing down 2.7%

Cost of rental housing fell 2.7% in July

The price of rental housing in Spain was €10.44 per square metre in July. This is a variation of -2.7% when compared to July in 2020, according to data from property portal fotocasa. This is the sixth consecutive fall.

For several months the trend in rental prices in Spain has changed and large price increases have been left behind. This is the sixth consecutive month that the price of rental housing has fallen year-on-year, although the fall in July (-2.7%) is somewhat softer than those registered in previous months. In the coming months we will continue to record similar data at the national level, but in some communities the price drops will be somewhat more pronounced, such as the Balearic Islands, Madrid or Catalonia. Other communities such as La Rioja or Cantabria are far from presenting price adjustments and we will still see how the rental price in these communities will show positive variations in the coming months“, explained María Matos, Director of Studies for Fotocasa.

Autonomous Communities

In July, 13 autonomous communities present positive monthly data. The communities of Extremadura and Cantabria, with an increase of 3.1% and 2.9%, are the regions with the highest price increases. They are followed by Aragon (1.5%), Asturias (1.4%), La Rioja (1.2%), Valencian Community (1.1%), the Balearic Islands (0.9%), Region of Murcia (0.5%), the Basque Country (0.5%), Madrid (0.4%), the Canary Islands (0.3%), Castilla-La Mancha (0.2%) and Catalonia (0.0%). On the other hand, the price of rental housing decreased in the communities of Navarra (-4.4%), Castilla y León (-0.7%), Andalusia (-0.5%) and Galicia (-0.3%).

Regarding the ranking of Autonomous Communities with the most expensive housing prices to rent a home in Spain, in the first places are Madrid and Catalonia, with prices of €13.84 p/m² per month and €13.79 p/m² per month, respectively. They are followed by the Basque Country with €13.15 p/m² per month, the Balearic Islands with €11.53 p/m² per month, Cantabria with €9.81 p/m² per month, Navarra with €9.61 p/m² per month, the Canary Islands with €9.61 p/m² per month, Aragon with €8.54 p/m² per month, Valencian Community with €8.51 p/m² per month, Andalusia €8.47 p/m² per month, Asturias with €8.21 p/m² per month, La Rioja with €7.63 p/m² per month, Region of Murcia with €7.47 p/m² per month, Galicia with €7.32 p/m² per month, Castilla y León with €7.31 p/m² per month, Castilla-La Mancha with €6.01 p/m² per month and Extremadura with €5.72 p/m² per month.

Provinces

The cost of homes for rent in Spain increased in 26 of the 48 provinces analysed (54%). The order of the 10 provinces with the highest monthly increases is: Jaén (4.7%), Lugo (4.3%), Badajoz (4.3%), Huelva (3.4%), Cantabria (2.9%), Burgos (2.3%), Zaragoza (1.5%), Castellón (1.5%), Asturias (1.4%) and Almería (1.3%).

The provinces with the most significant decreases are: Zamora (-6.4%), Navarra (-4.4%), Palencia (-2.9%), Cádiz (-2.8%), Valladolid (-1.9%), Araba – Álava (-1.9%), Tarragona (-1.5%), Ciudad Real (-1.5%), Segovia (-1.1%) and A Coruña (-1.1%).

Regarding prices, seven provinces exceed 10.00 euros per square meter per month for renting a home in Spain. The most expensive province is Gipuzkoa with €15.21 p/m² per month, followed by Barcelona (€14.53 p/m² per month), Madrid (€13.84 p/m² per month), Bizkaia (€12.49 p/m² per month), the Balearic Islands (€11.53 p/m² per month), Araba – Álava (€11.08 p/m² per month and Huelva (€10.06 p/m² per month). On the other hand, the province with the lowest rental costs is Ciudad Real with €5.25 p/m² per month.

 

Property Market Back to Pre-Pandemic Levels

Sales in Andalucia back to pre lockdown levels
Sales in Andalucia back to pre lockdown levels

Sales in Andalucia back to pre lockdown levels

In June, there was 193,000 property transfers registered in the public register. This is 70.5% more than in the same month of 2020.

In the case of property sales, the number of transactions reached 100,204, an annual increase of 82.5%, according to data from the INE.

84.9% of the sales registered in June corresponded to urban properties and 15.1% to rustic properties. In the case of urban properties, 56.7% relate to sales of residential property.

The number of sales of rustic properties increased 97.7% in the annual rate in June while the number of sales of urban properties increased 80.1%. Within the latter, home sales registered an annual increase of 73.5%.

19.4% of the homes sales transferred in June were new and 80.6% were second-hand homes. The number of transactions on new homes increased by 71.0% compared to June 2020 and that of used homes by 74.1%.

Results by Autonomous Communities

In June the total number of transmitted properties registered in the property registers per 100,000 inhabitants reached its highest values in Castilla y León (861), La Rioja (808) and Castilla – La Mancha (723).

Madrid (118.8%), Aragón (102.6%) and Castilla – La Mancha (90.9%) registered the highest annual variation rates.

Galicia (10.3%), Cantabria (37.1%) and Principado de Asturias (41.5%) registered the lowest increases.

In terms of registered home sales, the communities with the highest number of transfers per 100,000 inhabitants are Valencia (163), Madrid (150) and Andalucía (148).

The communities with the highest annual increases in the number of home sales in June were Madrid (99.3%), Aragón (89.0%) and Andalucía (88.4%). For Andalucia, this figure translates as 9,945 home sales in June. This figure is 9.2% higher than the sales recorded in May 2019 (9,100), before the pandemic, showing that the property market has fully recovered from the lockdown.

Cantabria (24.3%), the Basque Country (29.3%) and Principado de Asturias (38.0%) registered the lowest increases.

Property Market Recovery from Lockdown Continues

Sales continue to increase following pandemic slowdown
Home sales continue to increase following pandemic slowdown

Sales continue to increase following pandemic

In May, there was 184,608 property transfers registered in the property registrars. This is 142.7% more than in the same month of 2020. Of course, in May 2020 the country was in lockdown and real estate transactions ceased.

In the case of property sales, May saw 97,744 transactions, an annual increase of 144.9%, according to data from the INE.

85.2% of the sales registered in May correspond to urban properties and 14.8% to rustic properties. In the case of urban sales, 56.5% are sales of homes.

The number of sales of rustic properties increased by 247.2% in the annual rate in May and that of urban properties by 132.9%. Within the latter, sales of residential properties registered an annual increase of 107.6%. The increase in residential property sales when compared to April 2021 was 11.4%.

19.6% of the homes transferred by sale in May were new and 80.4% were second-hand homes.

The number of sales of new homes increased by 115.1% compared to May 2020 and that of used homes by 105.9%.

Results by Autonomous Communities

In the month of May, the total number of transferred properties registered in the property registers per 100,000 inhabitants reached its highest values in La Rioja (824), Castilla y León (779) and Aragón (738).

Region of Murcia (231.5%), the Canary Islands (218.8%) and La Rioja (215.7%) registered the highest annual variation rates.

The Basque Country (83.4%), Navarra (91.4%) and the Balearic Islands (113.0%) registered the lowest increases.

In terms of registered home sales in Spain, the communities with the highest number of transfers per 100,000 inhabitants are Valencia (166), Murcia (153) and Aragón (146). Andalucia saw 144 sales of homes per 100,000 inhabitants (9,684 sales), a 122.7% increase compared to May 2020.

The Communities with the highest annual increases in the number of home sales in May were Murcia (206.5%), the Canary Islands (176.9%) and La Rioja (147.2%).

The Balearic Islands (61.6%), the Basque Country (68.4%) and Madrid (68.5%) registered the lowest increases.