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Cost of Renting Drops in August

Cost of Renting Drops in August
Cost of rental housing Drops in August

Prices in Andalucia increased 6% annually

The price of rental housing in Spain fell again in August with owners now asking 0.5% less than in July.

However, when compared to August 2018, prices have actually risen by 7.7%. This brings the average cost per square metre to €8.50 p/month. Shockingly, this national average is a massive 39% lower than the average cost in the Community of Madrid where tenants pay an average of €14.01 p/m² per month.

The price of rentals continues to rise, but at a slower rate than we have seen in recent years. The monthly evolution of prices shows that growth slowdown, although in large cities and their outskirts prices continue to grow strongly,” explained Beatriz Toribio, director of studies at fotocasa.

Regarding the ranking of prices by Autonomous Communities, the most expensive housing price to rent in Spain is found in Madrid and Catalonia with prices of € 14.01 p/m² per month and €10.78 p/m² per month, respectively. Spain reached its all-time high in the average rental price in May 2007 when the national average reached €10.12 p/m² per month. Since then it has accumulated a decrease of -16%.

In Andalusia the average cost now is €6.89 p/m² per month, an annual increase of 6%, but 1.2% lower than in July this year.

Increases in 18 provinces

The average rental cost increased in 18 of the 48 provinces analysed by fotocasa. The most pronounced monthly increase was seen in Ourense where owners are asking 5.4% more than in July. This is followed by Madrid (2.8%) and Zaragoza (1.8%). Meanwhile, the province with the largest monthly decline was Huelva with -8.8%, followed by Lugo (-7.6%) and Jaén (-5.4%).

As for prices, Barcelona is the most expensive province with €14.72 p/m² per month, followed by Madrid (€ 13.66 p/m² per month), Biscay (€ 11.22 p/m² per month) and the Balearic Islands (€ 10.26 p/m² per month).

Rent rises in 32 municipalities

The average cost of rental housing grew in 32 of the 45 municipalities analysed. The city with the largest monthly increase is Ourense with 6%, followed by the city of Logroño (4.8%), Cádiz (4.5%), Tarragona (3.3%), Castellón de la Plana (3.3%), Madrid (2.6%) and Toledo (2.5%).

On the other hand, the cities with the biggest monthly declines are: Burgos (-3.9%), Lugo (-3.9%), Jaén (-3.4%) and Segovia (-3%).

As for the price per square meter in August, we see that only two municipalities exceed €15.00 p/m² per month and are: Barcelona with €16.40 p/m² per month and Madrid with €15.88 p/m² per month. The cheapest municipality to live in is Cáceres with 3.90 euros per square meter per month.