The average cost of renting increased by 10% year-on-year in Spain in August. This is the third year-on-year increase over 10% in 2017, in addition to 30 consecutive months of annual growth, according to the latest data from fotocasa.
The year-on-year variation recorded this month is the third highest recorded this year: in May it rose 10.5%, and in April the increase was 10.2%.
The average cost of renting in July (8.08€/m² per month) returns us to the figures of November 2010 when the average monthly rental cost was 8.10€/m².
“The rise in rental prices is widespread throughout the country, although it is most evident in Catalonia, the Canary Islands, the Balearics and Madrid. But our data starts to show year-on-year declines in some regions and monthly and quarterly declines in some districts of Barcelona and Madrid that indicate a trend towards the normalization of this market. This does not mean that we will not continue to experience strong price increases, as revealed by this third year-over-year increase of over 10% so far this year,” explains Beatriz Toribio, Head of Studies at Fotocasa.
Price Evolution by Autonomous Community
In August 2017, the average cost of renting increased in 10 autonomous communities on a monthly basis and 16 in the inter-annual level. The largest annual increases were in Catalonia (18.2%), the Canary Islands (11.3%), Madrid (11.2%) and the Balearic Islands (10.4%).
As for the price ranking, Catalonia is the most expensive community to rent a second-hand home, with an average monthly price of 12.13€/m² per month. It is followed by Madrid (11.66€/m² per month) and the Basque Country (10,80€/m² per month). On the opposite side, Extremadura (4.78€/m² per month) and Castilla-La Mancha (5.03€/m² per month) are the two communities with the most affordable rental prices.
Looking at the price evolution by province, 30 of them recorded an increase in the average rental price with respect to the month of July, with increases ranging from 3% in Teruel to 0.1% in Murcia and Segovia.
The rental price fell in 18 provinces with variations ranging from -0.1% in Girona and Pontevedra to -3.9% in Huelva. Navarre and Orense maintained stable prices with respect to the month of July. The price increased in 16 districts of Madrid.