Rental costs on the coast are increasing
How many people working in real-estate have heard the question “How far is it from the beach?”. It would appear that proximity to the playa is an important part of the decision when choosing a rental property and the consequence of this demand is that provinces that sit on the coast are recording the largest annual increases in rental costs, according to research carried out by property portal Fotocasa.
Out of 15 provinces to record an increase in rental costs, 13 have a coastline. Madrid and Guadalajara are the two provinces that do not sit on a coastal stretch.
The province to record the highest increase was the Balearic Islands where rental costs increased 18.1% year-on-year. Huelva followed with an annual increase of 17.3%, while Barcelona saw rental costs increase by 15.9%. Alicante saw costs rise by 11.6%, while Malaga and Murcia saw rental cost increases of 9.9% and 9.8%, respectively.
There were nine provinces that recorded a decline in rental costs, none of which sit on the coast. The largest fall in rental costs was seen in Teruel with prices falling 7.4% on the annual basis. They were followed by Zamora (-4%), Caceres (-3.6%), Jaén (-2.8 %) and Burgos (-2%).
Prices
Of the top 10 most expensive provinces in Spain in terms of rental housing, six of them are coastal. Barcelona and Guipuzcoa are the provinces with the highest prices, with 11.5€ p/m² per month and 10.6€ p/m² per month, respectively. Incidentally, all coastal areas saw an annual price increase.
Among the ten provinces with the lowest rental costs, only one is coastal. This is Lugo, which in May had an average price of only 4.4€ p/m² per month. Out of the ten cheapest provinces, price falls were recorded in six of them.
Municipalities
According to fotocasa data, 30 municipalities saw an increase in the cost of rental housing in May of more than 10%. Of these, 30, or 75%, were coastal. The steepest increase was in Rota where rental costs have increased by 40.9% year-on-year. Manilva has seen prices increase by over 27%, while Peñíscola and El Campello both recorded an annual increase of 23.4%.
Andalusia is the province with the most municipalities to see an increase with 12 Andalusian towns showing a rise. Valencia followed with 10 of its cities showing a price increase. There were increases in five of Catalonia’s cities, two in the Balearic Islands and one in the Canary Islands.
This news doesn’t come as a shock to me, nor will it to anyone who lives on the coast. The difference in temperature between coastal and inland areas is significant. If it’s 30 degrees on the Costa del Sol, it is likely at least 5 degrees higher inland, and you don’t need to go far inland to witness the difference. I was recently in Granada and the heat in the city centre was intense, in May.
