Rental cost has fallen 24.8% in 10 years
Rental costs in Spain have dropped by an average of €188 since the maximum was recorded in May 2007, according to the latest analysis by real-estate portal fotocasa.
Back in 2007 the average cost to rent a home in Spain was €810 (€10.12 / m²) for a property of 80m², while in February this year the average cost was €622. This reduction is equivalent to a fall of -24.8% in ten years.
“Renting a home today is almost 25% cheaper than in 2007, but in the last two years we have seen rental prices begin to recover because of rising interest and increased demand since the crisis erupted. This explains why homeowners are increasingly showing resistance to lowering prices and closed 2016 with the highest rise (6.7%) in the historical real estate index of fotocasa.”, explains Beatriz Toribio, head of Studies at fotocasa.
Autonomous Communities
The community to see the largest fall in rental costs is Aragon. Rental costs here have fallen by an average of €338 over the last nine years. The maximum price in Aragon was reached in June 2008 when the price of renting a property of 80m² was €868 (€10.85 /m²). Since then the price has fallen to an average of €530, a change of -38.6%.
On the opposite end of the scale, the Balearic Islands have held on to their rental costs better than other communities. On the islands the cost of renting has fallen only €5 in the last ten years. In July 2007, the average cost of renting an 80m² property was €787, compared to €782 recorded in February 2017.
The maximum price recorded in Andalucia was €673 for a property of 80m². In February 2017, the average cost had dropped to €511, a drop of €162, or -24.6%.
Prices
When looking at the communities in terms of prices, we see Catalonia at the top where the average cost of renting a property is €939. Since May 2007, when prices were at their maximum, rental costs have fallen by only €57, equivalent to a fall of -8.2%.
Extremadura is the cheapest community to rent property. On average, renting a property of 80m² costs €369. The maximum price was recorded in June 2008 when the average cost reached €443. This change represents a reduction of €75, or -17.2%.
