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Price of Rental Housing Fell in July

The cost of renting in Malaga fell by 1.3%
The cost of rental property in Malaga fell by 1.3%

The cost of rental property in Malaga fell 1.3%

The price of rental property in Spain fell slightly in July, recording a monthly variation of -0.8%. When compared to the same month in the previous year, the variation is +7.9%.

This change puts the average cost per square metre per month at €10.73, according to the real estate index from fotocasa. The national average for rental costs is a massive 29% below the average in the Community of Madrid where tenants have to face an average of €15.01 per square metre per month.

Renting by Autonomous Community

Nine communities presented negative variations in July. Castilla-La Mancha, with a decrease of -2.6%, recorded the greatest drop in rental prices, followed by Madrid (-1.9%), Catalonia (1.6%), Navarra (-1.2%), Castilla y León (-0.7%), Andalusia (-0.6%), Aragon (-0.5%), Balearic Islands (-0.4%) and Valencia (-0.3%).

On the other hand, the price of rental housing increased in the communities of Extremadura (4.2%), Cantabria (3.2%), Asturias (1.8%), La Rioja (1.2%), Region of Murcia (0.7%) and the Canary Islands (0.2%). Galicia and the Basque Country showed no monthly variation.

Price Ranking

Regarding the ranking of Autonomous Communities, Madrid and Catalonia have the most expensive rental property in Spain, with prices of €15.01 p/m² per month and €14.40 p/m² per month, respectively. They are followed by the Basque Country with €13.21 p/m² per month, the Balearic Islands with €12.50 p/m² per month, Navarra with €9.76 p/m² per month, the Canary Islands with €9.63 p/m² per month, Cantabria €9.12 p/m² per month, Andalusia €8.66 p/m² per month, Valencia with €8.64 p/m² per month, Aragon with €8.41 p/m² per month, Asturias with €7.80 p/m² per month, Region of Murcia with €7.32 p/m² per month, Castilla y León with €7.20 p/m² per month, Galicia with €7.09 p/m² per month, La Rioja with €6.88 p/m² per month, Castilla-La Mancha with €5.71 p/m² per month and Extremadura with €5.49 p/m² per month.

The price of rental housing shows a small contraction during the month of July: at a monthly level it falls by -0.8% compared to June, although at the interannual level it still increases by 7.9%. This year-on-year increase is more moderate than those registered in previous months which were closer to 10%, but high year-on-year increases are still being recorded. This rise in rental housing prices is due to the high demand for rental property and the scarce supply or supply that is not adapted to the needs of the demand. As long as supply and demand are not more balanced, we will continue to register increases in the rental price“, explained Anaïs López, Communication Director at fotocasa.

Renting by Province

Rental property prices dropped in 26 (53%) of the 49 provinces analysed. The most pronounced monthly decrease was recorded by Cuenca with -6.7%. They are followed by Palencia (-6.5%), Toledo (-5.3%), Albacete (-2.9%), Barcelona (-2%), Madrid (-1.9%), Jaén (-1.8%), Seville (-1.5%), Malaga (-1.3%) and Guadalajara (-1.2%). On the other hand, the ten provinces with the highest increases are: Huelva (8.2%), Ourense (4.8%), Badajoz (4.3%), Cantabria (3.2%), Lugo (2.8%), Cáceres (2.6%), Asturias (1.8%), Zamora (1.6%), La Rioja (1.2%) and Santa Cruz de Tenerife (0.8%).

Regarding prices, five provinces exceed 10.00 euros per square meter per month. The most expensive province is Barcelona with €15.48 p/m² per month, followed by Gipuzkoa (€15.14 p/m² per month), Madrid (€15.01 p/m² per month), Bizkaia (€12.64 p/m² per month) and the Balearic Islands (€12.50 p/m² per month). Meanwhile, the province with the lowest price is Cáceres with €5.19 p/m² per month.