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Rental Costs Increased in May

Renting costs 10.5% more than last year
Rental costs 10.5% more than last year

Renting costs 10.5% more than last year

Average rental costs in Spain increased by 1.3% in May, when compared to the previous month. The average price now stands at 8.14€ /m² per month, according to the latest data from fotocasa.

This is only the second month since 2011 to see an average price over 8€ /m² per month.

As with April, we see a striking annual increase with prices being 10.5% higher than in May 2016. This is the highest annual variation in rental costs over the last decade.

“The data shows that the rental market continues to register strong price tensions, which are even more evident in the ‘large squares’, namely Catalonia and Madrid, and in areas with great tourist demand such as the Balearic and Canary Islands. This explains that the distance with respect to the highs registered before the crisis is being cut very quickly. In May 2016, renting a home in Spain was 30% cheaper than in 2007 and today that difference has been reduced to 19.6% as a result of the great demand that currently exists in this market”, explains Beatriz Toribio from fotocasa studies.

Countrywide Increases

The increase seen in rental costs in May was reflected in all autonomous communities on the monthly variation, and in 16 of them on the inter-annual level.

The increases ranged from 2.8% in the Balearic Islands to 0.1% in Galicia. The monthly incease in Andalucia was 1.5%. The average monthly price per square metre in Andalucia is 6.60€.

Catalonia displaces the Basque Country as the most expensive community to rent with an average monthly price of 12.04€/m². The Basque Country now occupies third position behind Madrid with an average monthly cost per square metre of 11.51€.

As the bottom of the table we see Extremadura (4.70€/m² per month) and Castilla-La Mancha (4.87€/m² per month) as the most economical communities for tenants.

By province, 45 recorded rental cost increases in May, when compared to the previous month. The increases ranged from 7.9% in Huelva, to 0.3% in Sevilla, Ciudad Real and Ourense. Those which saw prices fall had monthly variations ranging from -0.2% in Coruña to -0.6% in Tarragona.