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Rental Costs Down in August

Cost of renting a home in Spain fell in August

Cost of renting a home in Spain fell in August

In Spain, the price of renting a home fell by 2.2% in August, when compared to July. When compared to the same month in the previous year, prices have increased by 4.7%. The current average price of second-hand housing to rent in Spain is €11.34 p/m². This price drop is the fourth consecutive monthly fall.

During the month of August, rental prices nationwide continue to show a slight trend towards moderation in growth after having shown the most significant variations in its history in recent months. However, the different speeds of the market come to light, the average does not show the reality of the most stressed communities, which continue with very large growth despite the summer season. In fact, 16 of the 50 provincial capitals once again reached price records in the eighth month of the year. Demand is slowing down in areas where demand is usually less intense, but it remains dynamic and strong in cities that attract more and more people, which causes double-digit increases in rent,” explains María Matos, Director of Studies for Fotocasa.

If we analyse rental prices compared to a year ago, we see that 16 communities saw prices increase year-on-year in August. In six communities, double-digit increases were seen, the highest being in the Balearic Islands with a massive 22.1% rise in rental costs. Following close behind are the Canary Islands with 18.0%. Other double-digit increases were seen in the Valencian Community (15.0%), Cantabria (12.9%), La Rioja (12.5%), and the Basque Country (10.4%). Also seeing prices go up were Madrid (9.5%), Andalusia (7.8%), Catalonia (6.5%), Galicia (6.4%), Castilla y León (5.4%), Navarra (5.1%), Castilla-La Mancha (5.0%), Asturias (5.0%), Aragon (1.8%) and Region of Murcia (1.2%). On the other hand, the only community that presented a decrease compared to the previous year was Extremadura with -1%.

Prices by Autonomous Community

In August 2023, three communities exceeded national average cost of renting a property in Spain per square meter per month. The areas of Spain with the highest prices in the entire historical series are: Basque Country (€15.06 p/m² per month), Asturias (€9.11 p/m² per month) and La Rioja (€8.90 p/m² per month).

Regarding the ranking of Autonomous Communities with the most expensive housing prices for renting a home in Spain, in first places are the Balearic Islands and Madrid, with prices of €17.01 p/m² per month and €16.90 p/m² per month, respectively. They are followed by six more communities with prices higher than €10.00 p/m² per month and they are: Catalonia (€15.88 p/m² per month), the Basque Country (€15.06 p/m² per month), the Canary Islands (€12.83 p/m² per month), Cantabria (€12.39 p/m² per month), Valencian Community (€11.40 p/m² per month) and Navarra (€10.93 p/m² per month).

Provinces of Spain

In 45 of the provinces, the year-on-year price of rental housing increased in August 2023, except for Albacete, Ciudad Real, Cuenca and Badajoz. Increases of more than 10% occurred in 12 provinces.

The order of the provinces with interannual increases greater than 10% are: the Balearic Islands (22.1%), Zamora (19.1%), Las Palmas (18.6%), Alicante (18.4%), Valencia (17.4%), Santa Cruz de Tenerife (16.9%), Málaga (14.1%), Cantabria (12.9%), La Rioja (12.5%), Granada (11.3%), Barcelona (10.2%) and Almería (10.2%).

Regarding prices, 15 provinces exceed 10.00 euros per square meter per month. The three most expensive provinces for renting are Barcelona with €17.59 p/m² per month, followed by the Balearic Islands with €17.01 p/m² per month and Gipuzkoa with €16.99 p/m² per month.