The average monthly rental cost is 7.26€ p/m²
The average price of rental housing in Spain fell by 2% in the third quarter. This places the average price per square metre at 7.26€ p/month according to the latest data from fotocasa. These figures from fotocasa are similar to those provided by idealista earlier this month.
This quarterly fall is the sharpest decline since September 2014 when the quarterly variation was -3.4%.
Beatriz Toribio, responsible for fotocasa Studies, said rental prices have begun to normalise “after losing nearly 30% of their value from the pre-crisis highs.”
However, Toribio also pointed out that prices in the larger cities and tourist areas are not following the same trend. Prices in Madrid, Barcelona and Valencia are “rising more strongly than in the rest of the country.”
Autonomous Communities
In the third quarter the price of rental housing increased in 11 of Spain’s autonomous communities. In three communities, the quarterly variation was above 10%. These were the Balearic Islands (+13.1%), Catalonia (+10.6%) and Valencia (+10.2%).
It is worth noting that year-on-year the price of rental housing increased in all regions except for Extremadura.
Since prices peaked in May 2007 (at an average of 10.12€ p/m² per month) the price of rental housing has accumulated a fall of -28.2%. In this regard, three autonomous communities have recorded falls above the average. These are Aragon (-38%), Castilla-La Mancha (-33.9%) and Cantabria (-33.4%).
Of the 11 communities to see an increase in rental housing costs the variation ranged from 2.6% in the Canary Islands, to 0.4% in Cantabria. Six communities saw prices fall in Q3.
Communities by Price
For the first time in recent years, Madrid has overtaken the Basque Country and Catalonia to become the most expensive community. As of September 2016, the average price of a square metre of rental housing was 10.51€ p/month. Catalonia was the next with a price of 10.48€ p/m² per month. The Basque country now places third with an average monthly cost of 10.29€ p/m².
Extremadura and Castilla-La Mancha are at the foot of the table with average monthly rental costs of 4.64€ p/m² and 4.79€ p/m², respectively.
By Municipality
Of the 251 municipalities analysed by fotocasa, 123 saw rental costs increase in Q3. Price falls were seen in 125. Coastal areas saw the sharpest falls, mainly due to rental increases during the second quarter. Punto Umbria, Rota and Isla Cristina saw quarterly variations of -34.2%, -14.9% and -14.3%, respectively.
The city with the highest rental costs is Barcelona with an average monthly cost of 14.07€ p/m². Following was Sant Cugat del Vallès, Gava, Sitges and San Sebastian with average monthly costs of 12.94€ p/m², 12.59€ p/m², 12.10€ p/m² and 12.03€ p/m², respectively.
Alzira, in Valencia, is at the foot of the table with a price of 3.67€ p/m² per month. Following were Almendralejo in Badajoz and Lucena, Córdoba, with average monthly costs of 3.69€ p/m² and 3.17€ p/m², respectively.
