The average price of rental housing in Spain closed 2018 with an annual increase of 1.8%, according to a report from fotocasa. This leaves the average cost per month at €8.30 p/m². This is the smallest increase registered in the last four years.
It is the fourth consecutive year to see rental prices increase. In 2015 the annual increase was 3.6%, in 2016 prices increased by 6.7%, and by 8.9% in 2017, which was the largest in recent times.
“The average price of rents has not stopped rising since 2015, but for the first time in the last four years the index reflects a more moderate increase during 2018 in most of the country. Additionally, the number of regions registering year-on-year falls has increased. Everything is pointing to a stabilising of rental costs. But in some areas, especially large cities and touristic areas, prices continue to rise and will carry on rising in 2019. This is despite the fact that in many cases prices are already at higher levels than they were during the boom years”, explained Beatriz Toribio, director of studies at Fotocasa.
Rental costs didn’t increase following the 2008 crash until 2015. There was one month in which rental prices fell year-on-year: in August of 2018 prices saw an annual fall of 2.2%. Thus, with the exception of that one month, the price of rental housing has increased for 45 consecutive months.
In 2015 and 2016, rental costs increased in 16 communities, while in 2017 there was an increase in 15 communities. In 2018, however, prices increased in only eight autonomous communities.
Madrid saw the biggest increase with prices going up by 14.9%, the only community to see an increase above 10%. Next were increases in Cantabria (+5.6%), Valencia (+5.2%), Andalucía (+2.5%), and the Canary Islands (+2.2%). The Balearic Islands and Asturias both saw an increase of 1.3%, while in Galicia rental costs went up by 0.8%.
Navarra (-16%) is the community in which the cost of rental property fell the most in 2018, followed by La Rioja (-9.4%), Extremadura (-8.6%) and Castilla y León (-7.1%).
Price Increase in 18 Provinces
At the end of the year there was an increase in rental costs in 18 of the 50 provinces and falls in 32. Madrid saw the largest increase, followed by Valencia (12.2%). Next, but with increases below 10%, were Pontevedra (8.5%), Malaga (7.2%) and Zaragoza (6.5%).
At the other end of the table, Huesca saw the largest fall with prices dropping 27.3%, followed by Soria (-24.7%), Álava (-20.2%), Guipúzcoa (-18.4%) and Teruel (-17.3%).