When looking to rent an apartment, tenants usually look at the rental prices, the number of rooms and the m². Over the last year, the prices of rental apartments have varied a great deal according to the number of bedrooms in the main provincial capitals. In the second quarter of this year, there have been large year-on-year increases in the price of studio apartments in Murcia and Granada, while the cost of one-bedroom apartments have risen in Alicante.
When comparing the second quarter of 2018 with this year it is curious to see how the price of rental housing has risen in the main capitals. However, looking at Marbella which is very competitive for rental prices we see a 2.1% fall in rental prices. Year-on-year, prices in Marbella have fallen strongly in two-bedroom apartments (-6.3%), in three-bedrooms (-2.4%) and also larger four-bedroom apartments (-2.1%).
Meanwhile, Murcia stands out for its stark price rises: the average rental price of a studio has skyrocketed 25% in one year. Properties with three bedrooms have increased by a whopping 12.8%, and four bedrooms by 9%.
As for the two main capitals of Spain, Madrid and Barcelona, the behaviour there has been uneven. In the country’s capital where incomes have increased the most in the last year the price rises are seen in three-bedroom apartments (6.1%) and in studios (5.1%). The overall average rental prices in Madrid increased 4.6%. On the other hand, in Barcelona, rents increased on average by 1.6% and there were certain types of apartments where prices fell. The average price of a studio in Barcelona fell by 3.5%.
Evolution of rental prices since 2016
In 2016, the Spanish economy grew by 3%, after rising 3.8% in 2015, according to data from the National Statistics Institute (INE). They were years of strong growth after leaving behind one of the worst economic crises in the country. And the rental market also took off strongly. In fact, it rose in all the main provincial capitals. From the second quarter of 2016 to June of this year, rents have increased with momentum mainly in Malaga (36.4%), Las Palmas de Gran Canaria (37%) and Valencia (31.8%).
The greatest increases were recorded in the prices of studios and one-bedroom apartments in major tourist areas (Mallorca, Malaga, Marbella, Las Palmas de Gran Canaria, Granada). In the opinion of Daniel del Pozo, head of data at idealista, this is due to the demand by local workers who saw prices increase across the board given the shortage of stock for long-term rental.
Standing out above all the other capitals is Mallorca, with an increase in prices over three years of more than 55% for studios. Malaga follows with a 45% increase for this type of housing.
In Madrid, rents increased the most in the price of studios (29.4%) and also for three-bedroom apartment (29.4%). However, in Barcelona, where incomes grew the most, it was in three-bedroom apartments (21%) and two-bedroom apartments (16.6%) that prices grew most significantly.
In apartments with three (35.3%) and four bedrooms (38.6%), Valencia stands out, the leading city in income increase between 2016 and 2019.
Evolution of rental costs 2017 – 2018
Between 2017 and 2018 the price of rentals in the main provincial capitals rose more strongly than in the last year. Proof of this are the increases of between 10% and 15% registered in Las Palmas de Gran Canaria, Madrid, Valencia and Málaga. Only in Barcelona did they fall (-0.8%).
By type of housing, studio prices increased more than 20% in Las Palmas de Gran Canaria (20.2%), Marbella (24.6%) and Málaga (25.8%). On the other hand, in Barcelona the price of studios decreased 5% between 2017 and 2018, the same as in Alicante (-4.3%) and Murcia (-1.8%).
Two-bedroom apartment rentals also stood out for increasing prices of more than 10% in Madrid (10.6%), Zaragoza (12.5%), Seville (12.7%), Murcia (13.3%), Las Palmas de Gran Canaria (15.5%) and Malaga (16.5%).