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Cost Of Rental Homes Down in Q3

Renting cost fell in 12 autonomous communities
Cost of rental homes fell in 12 autonomous communities

Rental cost fell in 12 autonomous communities

In Spain, the price of rental homes experienced a quarterly decrease of -0.7% at the end of the third quarter and an annual increase of 12%, placing the average price at the end of September at 10.74 euros per square meter per month. This last year-on-year increase represents the sixth increase in this period after 1.6% in 2015, 3.5% in 2016, 14.8% in 2017, 15% in 2018 and 2.3% of 2019, according to a report from the fotocasa.

Despite the fact that the rental price continues to rise strongly in many Autonomous Communities, it is important to note the slight quarterly decrease registered during the third quarter of 2020 compared to the second quarter because it indicates that prices during the pandemic have stabilized and in some cases, prices have fallen. However, the interannual variation (+12%) is quite high and indicates that rents are still rising strongly in much of the country although there are some communities such as the Balearic Islands, the Canary Islands and Madrid in which interannual decreases are already being seen,” explains Anaïs López, Communication Director at Fotocasa.

Renting by Autonomous Communities

In September 2020, the quarterly price fell in 12 autonomous communities. The most notable decrease is -4.2% in the Balearic Islands. They are followed by Madrid (-3.8%), Castilla-La Mancha (-2.6%), Region of Murcia (-2.2%), Andalusia (-2%), Cantabria (-1.7%), Catalonia (-1.5%), Valencia (-1.4%), Castilla y León (-1.4%), Navarra (-1.2%), Aragon (-1.1%), Galicia (-0.6%). On the other hand, the communities with quarterly increases are: Extremadura (2.5%), Basque Country (1.7%), Asturias (1.3%), La Rioja (0.4%) and Canarias (0.4 %).

Looking at the ranking of the communities by price, the most expensive is of course Madrid where you can expect to pay an average of 14.72 euros per square meter per month. It is followed by the communities of Catalonia (€14.41 p/m² per month), the Basque Country (€13.44 p/m² per month), the Balearic Islands (€12.02 p/m² per month), Navarra (€9.76 p/m² per month), Canary Islands (€9.65 p/m² per month), Cantabria (€8.69 p/m² per month), Valencia (€8.55 p/m² per month), Andalusia (€8.54 p/m² per month), Aragon (€8.36 p/m² per month), Asturias (€7.76 p/m² per month), Castilla y León (€7.15 p/m² per month), Region of Murcia (€7.11 p/m² per month), Galicia (€7.05 p/m² per month), La Rioja (€6.83 p/m² per month), Castilla-La Mancha (€5.71 p/m² per month) and Extremadura (€5.40 p/m² per month).

Rental Costs by Province

The data shows that in the third quarter of 2020 the quarterly average rental price fell in 69% of the 48 provinces of Spain analysed, while in the same period of 2019, it fell in 71%.

In September, three provinces saw their quarterly price of rental homes dip by more than 10%. These were Cuenca with the largest decrease of -11.7%, followed by Lugo with -10.5% and Huelva with -10.3%.

Fifteen provinces saw the average cost of homes for rent increase at the end of the quarter. The ten provinces with the largest quarterly price increase are: Ourense (5.9%), Tarragona (4.3%), Badajoz (3.2%), Albacete (2.7%), Lleida (1.7%), Valladolid (1.5%), Asturias (1.3%), Bizkaia (1.2%), Las Palmas (0.9%) and La Rioja (0.4%).

Regarding the price ranking of rental homes by province, Barcelona and Gipuzkoa are the only ones that exceed the barrier of €15.00 p/m² per month. Barcelona stands at €15.40 p/m² per month and Gipuzkoa at €15.26 p/m². These provinces are followed by Madrid with €14.72 p/m² per month, Bizkaia with €12.85 p/m² per month, the Balearic Islands with €12.02 p/m² per month, Las Palmas with €9.99 p/m² per month, Araba – Álava with €9.99 p/m² per month and Malaga with €9.81 p/m² per month.

On the other hand, the cheapest provinces for home rental homes are Jaén with €5.03 p/m² per month, Cáceres €5.04 p/m² per month, Ciudad Real €5.21 p/m² per month, Cuenca €5.29 p/m² per month , Lugo €5.43 p/m² per month, Zamora €5.51 p/m² per month, Badajoz €5.56 p/m² per month, Ourense with €5.73 p/m² per month, León €5.76 p/m² per month and Ávila with €5.85 p/m² per month.