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The Cost of Renting a Home Fell in May

Prices grew 8% in the Canary Islands
Cost of renting grew 8% in the Canary Islands

Rental prices grew 8% in the Canary Islands

The average price of renting a home in Spain decreased by 1.1% in May to stand at €8.44 p/m² per month, according to data from fotocasa.

On a monthly basis, rental costs increased in eight communities and decreased in nine. The highest monthly increase was recorded in Murcia (+2.6%), followed by the Canary Islands (+1.1%) and Castilla y Leon (+0.7%).

The average price for renting a property for the month of April (€8.53 p/m² per month) returns us to similar rates as in January 2010, when the rental price stood at an average per month of €8.52 p/m². Since reaching the maximum in May 2007 (€10.12 p/m² per month), the average rental price has accumulated a decrease of -16.6%.

“Year-on-year increases in the rental price are not as intense or widespread as we saw a year ago, although we continue to experience strong price tensions in large cities such as Madrid, Valencia and some tourist spots. The trend is towards normalisation, especially considering that in some of these areas we have already reached the prices recorded during the boom years”, explained Beatriz Toribio, director of studies at fotocasa.

Autonomous Communities

On a year-on-year basis, the price of renting a home increased by 3.7% in May and increased in 14 communities. The Canary Islands recorded the highest year-on-year increase (+8%), followed by Madrid (+7.4%), Valencia (+7.3%) and Castilla-La Mancha (4%). In Andalucia, rental prices increased by 2%.

Incidentally, the price of rental housing had increased for 39 consecutive months.

In terms of price ranking, Madrid is the most expensive community to rent a home, with an average monthly price of €12.36 p/m². It is followed by Catalonia (€12.29 p/m²), the Balearic Islands (€10.60 p/m²), and the Basque Country (€9.97 p/m²). On the opposite side, Extremadura (€4.70 p/m²) and Castilla-La Mancha (€5.06 p/m²) are the two most economical communities for housing rental.

Looking at the price variations by province, 19 of them recorded a monthly increase in rental costs, when comparing to April. The increases ranged from 5.6% in Cuenca, to 0.1% in Valencia, Cantabria and the Balearic Islands. On the other side, rental prices fell in 31 provinces with decreases ranging from -5.3% in Guipúzcoa, to -0.1% in Ciudad Real and Las Palmas.