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Average Cost of Rental Housing Up in October

admin | 11th November 2022 | Costa del Sol, Marbella, News, Prices, Property Market, Rental Property, Renting, Spain

Average cost of rental housing in Spain reached €10.25 in October

Average rental cost reached €10.25 in October

Rental housing in Spain had an average price per square meter of 10.25 euros in October 2022. This figure showed a monthly rise of 0.49%. In the year-on-year comparison, it grew by 3.85%.

Ferran Font, director of studies at piso.com said, “The cost of renting a home in Spain continues to show significant increases, given that the offer is becoming smaller and the demand tends to take refuge in this formula due to the growing difficulties of access to purchase“. He further suggests inflation is a factor that is reducing the spending capacity of Spaniards, who, by not being able to save as much as before, are affecting their chances of becoming homeowners. On the other hand, Font comments that “the new mortgage scenario, with rising interest rates, leads to adopt a ‘wait and see’ approach, which contains potential first-time and replacement homebuyers in the rental market.”

Taking into account the current situation in the residential segment, buying to rent represents one of the investment options that will give the best response. “If you have enough liquidity, directing savings towards flats that do not have to do too many reforms and located in well-connected areas means having a profitable and safe asset,” says Font. In any case, he insists that you have to build trust among the owners and work so that they feel protected against evictions and defaults.

Renting in Autonomous Communities

The monthly data revealed that the most expensive regions to rent in Spain in October 2022 were Madrid (€13.69 p/m²), the Balearic Islands (€13.18 p/m²) and Catalonia (€12.03 p/m²), while the cheapest rents were in Castilla y León (€4.71 p/m²), Extremadura (€5.28 p/m²) and Castilla-La Mancha (€5.40 p/m²). The most striking increase took place in Murcia (2.34%). The greatest fall occurred in Navarra (-2.24%). Compared to last year, the Balearic Islands (19.42%) was the one that increased the most and Navarra (-13.43%) the one that fell the most. In Andalucia, the average cost per square metre reached 7.55 euros in October.

Results By Province

In the classification of provinces by average cost of rental housing, in October 2022 the most expensive was Madrid, with 13.69 euros per square meter. It was followed by Barcelona (€13.51 p/m²) and the Balearic Islands (€13.18 p/m²). On the opposite side, Cuenca closed the classification with 3.16 euros per square meter. Other economic provinces were Ávila (€3.34 p/m²) and Ciudad Real (€3.51 p/m²). The province that saw rents increase the most in the last month was Santa Cruz de Tenerife (2.92%), while the one with the largest fall was Córdoba (-3%). From one year to another, the highest increase registered was that of the Balearic Islands (19.42%). The income that adjusted the most was that of Navarra (-13.43%).

As for the provincial capitals, Barcelona was the most expensive for rental housing with 19.28 euros per square meter. It was followed by Madrid (€17.35 p/m²) and Donostia-San Sebastián (€16.64 p/m²). On the contrary, Zamora was the cheapest with 6.05 euros per square meter. Other economic capitals were Ourense (€6.19 p/m²) and Jaén (€6.27 p/m²). Pamplona (2.40%) led the monthly increases, while Castellón de la Plana (-2.70%) was the capital that devalued the most in this period. Compared to October 2021, Alicante (20.98%) led the increases. The most striking cut was thrown by Pontevedra (-2.05%).

Rental Cost Down, Sale Prices Up, in Q3

admin | 20th October 2022 | Andalucía, Buying, Costa del Sol, Málaga, Marbella, Prices, Property For Sale, Property Market, Renting, Selling, Spain, Statistics/Figures

At the end of Q3 rental housing costs are down 0.2%

At the end of Q3 rental costs are down 0.2%

The average price of second-hand housing in Spain in the month of September 2022 was 1,962 euros per square meter. This figure represented a rise of 1.84% compared to June 2022. Year-on-year, the rise reached 6.02%. The rebound compared to August 2022 was 0.57%, since the average price last month was 1,951 euros per square meter.

“Second-hand housing has prolonged its upward behaviour in the third quarter of the year, but it is to be expected that with the recent increases in interest rates that the European Central Bank has put on the table, the final stretch of the year will bring a slight deceleration“, said Ferran Font, Director of Studies at piso.com. He also suggested that residential property has moved in contained rise margins if we take inflation as a reference, supported by a very active demand in search of opportunities. Font also added “the possible arrival of an economic recession will limit the thrust of a market that, faced with more expensive mortgages and more savings-focused buyers, will slow down.”

However, Font insists that this slowdown will not be distributed evenly throughout the Spanish territory. “We have witnessed how certain capitals have placed their prices at pre-bubble levels, while others are still a significant distance away,” explains Font. The imbalances in population density between areas will also be appreciable when the price curve is inverted: “The most powerful cities will hardly change, while others will have a downward path”, declared Font.

Prices by Autonomous Community

In the third quarter of the year, the Balearic Islands (4.30%), Madrid (2.70%) and Andalusia (2.31%) led the price increases. The only drop occurred in Extremadura (-1.71%). Year-on-year, the Balearic Islands (12.07%), the Valencian Community (9.48%) and Madrid (8.97%) showed the most significant increases. There were no setbacks in this period. The most expensive region in September 2022 was the Balearic Islands (€3,605p/m²) and the cheapest was Extremadura (€802p/m²).

Prices by Province

The largest quarterly increases took place in Zamora (5.84%), Soria (4.61%) and the Balearic Islands (4.30%), while the most marked setbacks took place in Badajoz (-1.99%), Cáceres (-1.25%) and Toledo (-1.23%). From one year to the next, those that rebounded the most were Alicante (13.10%), the Balearic Islands (12.07%) and Malaga (11.17%). In the falls section, the first positions were for Ciudad Real (-8.50%), Teruel (-4.12%) and Palencia (-3.56%). The most expensive province was the Balearic Islands (€3,605p/mm²) and the cheapest was Ciudad Real (€625p/mm²).

Quarterly Rental Costs

Rental housing in Spain had an average price of 10.20 euros per square meter in September 2022. This figure marked a monthly rise of 0.10% and a year-on-year rise of 3.98%. Year-on-year, the price fell -0.20%.

“Although renting a home today is more expensive in practically all the provincial capitals, we are seeing how the national average monthly payment is containing its thrust in the monthly variable, with no rises above 1% for a year. In fact, from January to September it even registered two drops in this interval“, said Font. However, Font also indicates that this containment should not lead us astray: “Tenants have less spending capacity due to inflation, so any increase, no matter how small, destabilizes the budget available to households“, he said.

On the supply side, there are a whole series of opposing forces that make it difficult to predict market behaviour with an acceptable margin of safety. Font indicates that “the income control measures, although they have not yet materialized through the new Housing Law, act as a deterrent to investment in rental housing. However, on the other hand, housing continues to be an asset to direct savings while other investments are more volatile in a possible recession scenario.” In any case, Font insists that “in the face of growing demand, the lack of supply is a bottleneck that has a very negative effect on access to housing“.

Rental Costs in Autonomous Communities

The quarterly data revealed that the most expensive regions to rent property in Spain in September 2022 were Madrid (€13.53 p/m²), the Balearic Islands (€12.92 p/m²) and Catalonia (€11.86 p/m²), while the cheapest rents were in Castilla and León (€4.70 p/m²), Extremadura (€5.27 p/m²) and Castilla-La Mancha (€5.47 p/m²).

In the third quarter of the year, the most striking increase took place in Cantabria (7.11%). The greatest negative adjustment occurred in Asturias (-5.76%). Compared to last year, the Balearic Islands (13.50%) was the one that increased the most and Navarra (-9.11%) the one that fell the most.

In the classification of provinces by price, in September 2022 the most expensive was Madrid, with 13.53 euros per square meter. It was followed by Barcelona (€13.18 p/m²) and the Balearic Islands (€12.92 p/m²). On the opposite side, Cuenca closed the classification with 3.18 euros per square meter. Other economic provinces were Ávila (€3.35 p/m²) and Ciudad Real (€3.59 p/m²). The province that recorded the most significant increase in the third quarter was Cantabria (7.11%), while the one that recorded the most significant fall was Salamanca (-6.33%). From one year to another, the highest increase registered was that of Valencia (17.83%). The prices most significantly reduced were in Guipúzcoa (-11.85%).

Regarding provincial capitals, Barcelona was the most expensive for tenants with a price per square meter of 18.88 euros. It was followed by Madrid (€17.29 p/m²) and Donostia-San Sebastián (€16.68 p/m²). On the contrary, Zamora was the cheapest with 6.01 euros per square meter. Other economic provincial capitals were Ourense (€6.06 p/m²) and Ciudad Real (€6.27 p/m²). Alicante (8.05%) led the quarterly increases, while Pontevedra (-7.55%) was the capital that devalued the most in this period. Compared to September 2021, Alicante (18.71%) led the increases. The most striking cut was thrown by Lleida (-1.32%).

Increase in Cost of Sale and Rental Housing

admin | 6th October 2022 | Andalucía, Buying, Costa del Sol, Málaga, Marbella, News, Prices, Property For Sale, Property Market, Rental Property, Renting, Selling, Spain, Statistics/Figures

Cost of renting and buying up across Spain

The average price of second-hand housing in Spain in the month of August 2022 was 1,951 euros per square meter. This represents a rise of 0.95% when compared to July. When we compare the figure to the same month last year, the change is +5.26%, up from 1,853 euros.

“The residential market has experienced an incredible boom throughout 2022, but from now on the figures for sales and mortgages will not be so bulky,” said Ferran Font, director of studies at pisos.com. “It is very possible that the July rate hike carried out by the European Central Bank will be followed by another in September, so loans for home purchase will not be as accessible. The increase in the cost of financing will cause a certain withdrawal in demand, and therefore, the stabilization of prices, which although they have not risen uncontrollably, have shown great dynamism, to the point of placing many capitals at price levels prior to the crisis of 2008“.

Font also points out that with inflation reaching double-digit figures for two months in a row, recession is a more than real threat to the Spanish economy, especially if other variables such as GDP or unemployment are taken into account. Given this possibility, Font predicts that real estate transactions will slow and purchase decisions will suffer as a result, and this will end up affecting prices”.

Balearic Islands Most Expensive Community

According to the monthly data, the most expensive regions in August 2022 were the Balearic Islands (€3,550p/m²), Madrid (€3,260p/m²) and the Basque Country (€2,955p/m²), and the cheapest Extremadura (€805p/m²), Castilla-La Mancha (€848p/m²) and Murcia (€1,122p/m²). Year-on-year, the most significant increases were seen in the Balearic Islands (10.12%), the Valencian Community (9.31%) and Murcia (8.53%), registering the only negative adjustment in Castilla-La Mancha (-0.08%).

Regarding the provinces, the largest increases from one year to another were located in Alicante (13.18%), the Balearic Islands (10.12%) and Malaga (9.86%). The most pronounced decreases were recorded by Ciudad Real (-6.48%), Teruel (-4.57%) and Palencia (-3.49%).

In the classification of the provinces by price, the most expensive in August 2022 was the Balearic Islands, with 3,550 euros per square meter. It was followed by Guipúzcoa (€3,283p/m²) and Madrid (€3,260p/m²). On the opposite side was Ciudad Real, which closed the classification with 620 euros per square meter. Other economic provinces were Jaén (€689p/m²) and Cuenca (€747p/m²).

As for the provincial capitals, the most intense increases in the cost of Spanish homes for sale compared to August 2021 occurred in Alicante (18.05%), Murcia (16.59%) and Almería (11.85%). The ones that fell the most were Huesca (-10.79%), Palencia (-7.66%) and Lleida (-3.30%). Ordering the provincial capitals by price, Donostia-San Sebastián was the most expensive, with 5,753 euros per square meter. It was followed by Barcelona (€4,473p/m²) and Madrid (€4,307p/m²). The capital of Jaén was the most affordable with 1,053 euros per square meter. Other cheap provincial capitals were Lleida (€1,125p/m²) and Ciudad Real (€1,130p/m²).

Rental Costs

The price of rental housing fell -3.4% in its monthly variation and rose 3.9% in its interannual variation, placing its price at €10.83p/m² per month in August, according to data from Fotocasa. This year-on-year increase (3.9%) represents the sixth increase in 2022.

“Although the increase in August has moderated on a year-on-year basis, it could be due to a seasonality issue, in which the summer season ends and coincides with a drop in demand, before the start of the September academic year. However, if we zoom in on the autonomous communities, provinces and municipalities, we detect that almost without exception there are significant increases in rental prices. It is perceived that in the areas of greatest demand and therefore most stressed, the increases exceed two digits. Which is an indicator that the price continues to rise, pushed by a situation of imbalance between supply and demand, in which the housing stock has been reduced in a very detrimental way in recent months,” said María Matos, director of Studies at Fotocasa.

Rental Costs by Autonomous Community

If we look at the rental prices compared to those of a year ago, we see that all the communities increased the year-on-year price in August. Five communities exceeded two digits and specifically in the Balearic Islands, Valencian Community and Cantabria it exceeded 15% year-on-year. The order of the areas of Spain with interannual increases is: Balearic Islands (17.8%), Valencian Community (16.0%), Cantabria (15.4%), the Canary Islands (12.6%), Madrid (11.6 %), Castilla y León (9.2%), Galicia (8.3%), Region of Murcia (8.3%), La Rioja (6.5%), Catalonia (5.5%), Navarra ( 5.3%), Asturias (5.2%), Castile-La Mancha (4.0%), Extremadura (3.8%), Andalusia (3.4%), Aragon (3.4%) and Country Basque (1.7%).

In August 2022, six communities exceeded the historical maximum rental housing prices per square meter per month. The areas of Spain with the highest prices in the entire historical series are the Balearic Islands (€13.93p/m² per month), the Canary Islands (€10.87p/m² per month), Galicia (€7.95p/m² per month), Navarra (€10.40p/m² per month), Asturias (€8.68p/m² per month), and the Basque Country (€13.64p/m² per month).

Regarding the ranking of Autonomous Communities with the most expensive homes for rent in Spain, Madrid and Catalonia are in the first places, with prices of €15.44p/m² per month and €14.91p/m² per month, respectively. They are followed by five more communities with prices above €10.00p/m² per month and they are: the Balearic Islands with €13.93p/m² per month, Basque Country with €13.64p/m² per month, Cantabria with 10.97 €p/m² per month, the Canary Islands with €10.87p/m² per month and Navarra with €10.40p/m² per month.

Renting by Province

Almost all provinces increased the year-on-year price of rental housing in August 2022, except for Guadalajara and Cáceres. Increases of more than 10% occur in 11 provinces and in only three provinces the increase is less than 1%.

The order of the provinces with interannual increases of more than 10% are: Girona (19.3%), Alicante (19.2%), Málaga (18.2%), the Balearic Islands (17.8%), Cantabria (15.4%), Valencia (14.4%), Las Palmas (13.4%), Lleida (12.0%), Madrid (11.6%), Tarragona (10.6%) and Santa Cruz de Tenerife (10.4%).

As for prices, 13 provinces exceed 10.00 euros per square meter per month for the cost of rental housing. The three most expensive provinces are Barcelona with €15.96p/m² per month, followed by Gipuzkoa with €15.62p/m² per month and Madrid with €15.44p/m² per month.

Spain Tops List of Countries For Expat Retirees

admin | 14th September 2022 | Andalucía, Costa del Sol, Holiday homes, Investment, Málaga, Marbella, News, Property Market, retire, Tourism

46% of over 50s considering Spain for retirement

46% of over 50’s considering Spain to retire

Spain has once again been named as the best destination to retire for Brits over 50, the 10th consecutive year.

A new survey by Canada Life shows that despite Brexit and the pandemic almost half of those polled said they were considering moving to sunny Spain for their retirement.

For the first time, Portugal has overtaken France to take second place, while countries further afield, including the US and Australia, also moved up in the rankings.

A massive 54% of those who took part in the survey said they were thinking of Spain due to the cheaper cost of living, up from 45% in 2021. Many cited UK wallet-busting inflation and increases in household bills as their main reason for the decision.

However, the better weather and laid-back lifestyle remained as the main motive for 64% of over-50s surveyed.

The cheaper cost of living, including the lower cost of Spanish property, seemed to be at the forefront of the decision for many retirees who thought the estimated monthly income required in Spain was around £1,430 per month, while for retiring in the UK the same people thought the required monthly income would be more at close to £2,000.

Pros and Cons?

Despite the obvious benefits of moving to Spain for your retirement (weather, food, lifestyle etc) you must also remember that there are issues which may negatively affect you, including your state pension.

Just over half (53%) of the over-50s who responded to the survey said that Brexit had left them wondering if Europe was still the place for them to retire, while 48% said Brexit was making them reconsider moving abroad at all.

Luckily, the British Government struck a deal with Spain and other EU countries during the Brexit negotiations which means that your pension rights are not affected. However, not all countries accepted the deal and many countries further afield, including Canada, Australia, India and parts of the Caribbean, did not.

“The dream of retiring abroad is alive and well, despite the economic headwinds and global pandemic,” says Andrew Tully, technical director at Canada Life.

“The thought of a better lifestyle and weather, coupled with a cheaper way of life drives many over 50s to have a desire to extend the dream holiday to a permanent situation. The cost of living crunch, if anything, has made it more likely people will jump ship from the UK. Retiring abroad is not a step to be taken lightly though. The financial considerations are vast, such as thinking about the impact of currency exchange rates, local tax rules, and whether state pensions will keep pace with the cost of living.”

Canada Life carried out the survey in August, polling 1,000 UK adults aged over 50 who are not yet retired but are considering a move abroad.

Cost of Renting Reaches Historical Highs

admin | 2nd September 2022 | Andalucía, Costa del Sol, Málaga, Marbella, News, Prices, Property Market, Rental Property, Renting

Renting is more expensive than ever before!

The price of rental housing in Spain increased by 0.9% in July, when compared to the previous month. When compared to the same month in the previous year, rental prices have increased 7.4%. This brings the average cost per square metre to €11.21. The average cost exceeded €10 per square metre some 33 months ago, and this latest increase brings the price to the highest ever recorded.

“Rental prices reached the historical maximum level, with an upward trend. It has been recovering ground for nine consecutive months – it came out of the negative period of 2021 – and presents the biggest increases since records exist. It is a moment that marks a milestone in the evolution of this market. In addition, the increases in some hot spots of the Valencian autonomy, which also presents unprecedented increases, as well as in Catalonia, Madrid and Andalusia, are very significant. The main cause that pushes the price up is the very important reduction in supply that has already been detected since the beginning of the year and the incessant increase in inflation that influences the price of homes that come onto the market“, explained María Matos, director of Studies at Fotocasa.

Increases in All Autonomous Communities

If we look at rental prices compared to those of a year ago, we see that all the communities saw an increase in the year-on-year price in July. In six communities we saw double-digit increases, specifically in the Valencian Community it exceeded 15% year-on-year. The order of the areas of Spain with interannual increases is: Valencia (17.5%), the Balearic Islands (14.5%), Cantabria (14.0%), Region of Murcia (13.9%), the Canary Islands (12.7%), Madrid (11.2%), Castilla y León (9.4%), La Rioja (8.8%), Extremadura (8.6%), Galicia (7.9%), Castilla- La Mancha (7.8%), Navarra (7.8%), Catalonia (7.3%), Andalusia (5.0%), Asturias (3.7%), Aragon (3.4%), and the Basque Country (2.7%).

In July 2022, seven communities exceed national average prices per square meter per month. The areas of Spain with the highest prices in the entire historical series are the Balearic Islands (€13.20/m² per month), Cantabria (€11.18/m² per month), the Canary Islands (€10.83/m² per month), Navarra (€10.36/m² per month), Region of Murcia (€8.51/m² per month), Castilla y León (€8.00/m² per month) and Extremadura (€6.21/m² per month).

Regarding the ranking of Autonomous Communities by the price to rent a home in Spain, Madrid and Catalonia are in the first places, with prices of €15.39/m² per month and €14.79/m² per month, respectively. They are followed by six more communities with prices above €10.00/m² per month and they are: the Basque Country with €13.51/m² per month, the Balearic Islands with €13.20/m² per month, the Canary Islands with €10.83/m² per month, Navarra with €10.36/m² per month and Valencia with €10.00/m² per month.

Provinces of Spain

Almost all provinces saw an increase in the year-on-year price of rental housing in July 2022, except Guadalajara. Increases of more than 10% occurred in 20 provinces and specifically, three of them experienced increases of more than 20%.

The order of the provinces with year-on-year increases of more than 10% are: Girona (20.3%), Huelva (20.3%), Málaga (20.2%), Alicante (18.8%), Cuenca (15.8%), Valencia (15.6%), Balearic Islands (14.5%), Las Palmas (14.3%), Cantabria (14.0%), Lugo (13.9%), Murcia (13 .9%), Cádiz (12.4%), Badajoz (12.2%), Huesca (11.8%), Madrid (11.2%), Castellón (10.8%), Lleida (10.7%), Tarragona (10.5%), Palencia (10.3%) and Segovia (10.1%).

As for prices, 14 provinces exceed 10.00 euros per square meter per month for rental housing. The three most expensive provinces are Barcelona with €15.77/m² per month, followed by Gipuzkoa with €15.52/m² per month and Madrid with €15.39/m² per month.

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