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Renting Cost Continues to Rise in Spain

Cost of renting up in October
Cost of rental housing increased in October

Cost of rental housing increased in October

The price of rental housing in Spain increased by 0.1% in October, when compared to the previous month. When compared to the same period in 2019, the variation is +9.6%. This brings the average monthly cost of renting a home in Spain to €10.75 p/m². This is the fifth consecutive annual increase and also the fifth highest increase following rises of 12% in September, 10.9% in April, 9.9% in March and 9.8% in May.

Although rental prices are still rising strongly in some autonomous communities at the interannual level, we are already beginning to notice that in some communities, rental prices have reached high prices and are already registering year-on-year decreases. This is the case in the Balearic Islands (-6.8%), the Canary Islands (-2.2%) and Madrid (-2.1%). Right now the rental market is evolving at different speeds across the country and while there are areas where increases are still high in others, price drops are already a reality“, explained Anaïs López, Communication Director at fotocasa.

Autonomous Communities

In Spain, ten autonomous communities presented negative monthly variations in October 2020. The Balearic Islands, with a decrease of -3.2%, recorded the biggest fall. They are followed by falls in the Region of Murcia (-3%), Extremadura (-2.2%), Valencia (-1.9%), Madrid (-1.4%), Catalonia (-0.9%), Castilla and León (-0.8%), Basque Country (-0.4%), Navarra (-0.2%) and Asturias (-0.1%).

Meanwhile, the price of rental housing increased in the communities of La Rioja (2.6%), Aragón (1.7%), Galicia (0.7%), Castilla-La Mancha (0.5%), Canary Islands (0.2%) and Andalusia (0.1%). Cantabria is the only community that maintained the price of the previous month and maintains its monthly variation.

Ranking the communities with the most expensive places to rent a home in Spain, in the first places are Madrid and Catalonia, with prices of €14.51 p/m² per month and €14.28 p/m² per month, respectively. They are followed by the Basque Country with €13.39 p/m² per month, the Balearic Islands with €11.64 p/m² per month, Navarra with €9.74 p/m² per month, the Canary Islands with €9.67 p/m² per month, Cantabria €8.69 p/m² per month, Andalusia €8.55 p/m² per month, Aragon with €8.50 p/m² per month, Valencian Community with €8.39 p/m² per month, Asturias with €7.75 p/m² per month, Galicia with €7.10 p/m² per month, Castilla y León with €7.09 p/m² per month, La Rioja with €7.01 p/m² per month, Region of Murcia with €6.90 p/m² per month , Castilla-La Mancha with €5.74 p/m² per month and Extremadura with €5.28 p/m² per month.

Renting by Province

The price of housing for rent in Spain dropped in 28 of the 48 provinces analysed (58%). The most pronounced monthly decrease was recorded by Cuenca with -8.3%. They are followed by significant drops in Zamora (-5.4%), Tarragona (-4.1%), Huelva (-3.8%), the Balearic Islands (-3.2%), Badajoz (-3.1%), Murcia (-3%), Salamanca (-2.9%), Castellón (-2.5%) and Valladolid (-1.6%).

The ten provinces with the most noticeable increases are: Lugo (3.3%), Jaén (3.2%), La Rioja (2.6%), Albacete (2.3%), Pontevedra (1.5 %), Ávila (1.5%), Girona (1.3%), Gipuzkoa (1.2%), Araba – Álava (1.1%) and Zaragoza (0.8%).

Regarding prices across the provinces, seven exceed 10.00 euros per square meter per month. The most expensive province is Gipuzkoa with €15.44 p/m² per month, followed by Barcelona (€15.21 p/m² per month), Madrid (€14.51 p/m² per month), Bizkaia (€12.68 p/m² per month), the Balearic Islands (€11.64 p/m² per month), Araba – Álava (€10.10 p/m² per month) and Las Palmas (€10.02 p/m² per month). The province with the lowest price is Cuenca with €4.85 p/m² per month.