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Cost of Renting in Spain Fell in May

Rental costs fell again in Many
Cost of rental property fell again in Many

Rental costs fell again (-4.5%) in May

In Spain, the price of rental housing increased by 0.2% on the monthly variation but fell by -4.5% when compared to the same month in 2020. This places the average price at €10.42 p/m² per month in May, according to data from the Fotocasa Real Estate Index. This last value (-4.5%) is the fourth decrease registered since February 2021 (-1.7%).

The price of rents in Spain continues to fall for the fourth consecutive month. A fall produced by the very pronounced decreases in the most stressed autonomous communities, such as Madrid or Catalonia. However, we detect that other regions that in previous months also showed significant drops, such as the Balearic Islands or the Canary Islands, are now falling at more moderate rates. This could be due to the reactivation of tourism in the face of the beginning of summer in the areas that are historically more dependent on the seasonality of the year,” explains María Matos, Director of Studies at Fotocasa.

Autonomous Communities

In May, 14 autonomous communities presented positive monthly data. The communities of La Rioja and Cantabria, with an increase of 4.9% and 4.8%, are the regions with the highest price increases. They are followed by Extremadura (3.9%), Murcia (3.8%), Aragon (1.8%), Valencia (1.3%), Castilla y León (1.0%), Basque Country (0.9%), Asturias (0.6%), Galicia (0.6%), Catalonia (0.5%), the Balearic Islands (0.3%), Andalusia (0.2%) and the Canary Islands (0.2%). On the other hand, the price of housing fell in the communities of Navarra (-1.7%), Castilla-La Mancha (-0.5%) and Madrid (-0.2%).

Looking at price ranking in the Autonomous Communities, the most expensive homes to rent in Spain are in Catalonia and Madrid, with prices of €13.88 p/m² per month and €13.77 p/m² per month, respectively. They are followed by the Basque Country with €13.22 p/m² per month, the Balearic Islands with €11.36 p/m² per month, Navarra with €9.96 p/m² per month, the Canary Islands with €9.39 p/m² per month, Cantabria at €9.31 p/m² per month, Andalusia €8.50 p/m² per month, Aragon with €8.46 p/m² per month, Valencian Community with €8.29 p/m² per month, Asturias with €7.96 p/m² per month, La Rioja with €7.49 p/m² per month, Castilla y León with €7.43 p/m² per month, Region of Murcia with €7.35 p/m² per month, Galicia with €7.29 p/m² per month, Castilla-La Mancha with €5.92 p/m² per month and Extremadura with €5.53 p/m² per month.

Provinces of Spain

Rental prices increased in 37 of the 46 provinces analysed (80%) by Fotocasa. The order of the 10 provinces with the highest monthly increases is: Huelva (7.3%), La Rioja (4.9%), Cantabria (4.8%), Badajoz (4.8%), Murcia (3.8%), Almería (3.7%), Cádiz (3.4%), Lugo (2.9%), Ávila (2.7%) and Cáceres (2.7%).

The provinces with the most notable decreases are: Lleida (-5.1%), Huesca (-2.3%), Jaén (-1.7%), Navarra (-1.7%), Ourense (-1.6%), Tarragona (-1.2%), Palencia (-0.9%), Ciudad Real (-0.4%) and Madrid (-0.2%).

Regarding prices, six provinces exceed 10.00 euros per square meter per month. The most expensive province is Gipuzkoa with €14.94 p/m² per month, followed by Barcelona (€14.58 p/m² per month), Madrid (€13.77 p/m² per month), Bizkaia (€12.69 p/m² per month) and the Balearic Islands (€11.36 p/m² per month). The province with the lowest price is Jaén with €5.10 p/m² per month.