Property rental prices have increased by a staggering 52% in the last five years according to a recent report by property website, Fotocasa.
The study titled “Cumulative variation of housing in Spain", analysed the percentage increases accumulated since 2015 and showed that the average price per square metre had increased by 52% or €7.13 per square meter in June 2015, to €10.82 per square meter in June 2020.
The increase means that it would have cost around €570 to rent a property of 80 sqm in June 2015 (€7.13 per sqm), compared to today’s price of around €866 (€10.82).
Fotocasa’s Director of Communications, Anaïs López said, “The demand for rental housing has taken off strongly in Spain in recent years and has pushed prices to grow a lot in a short time. This fact added to the shortage of housing for rent in our country, explains the large increases that we are registering. In fact, in nine autonomous communities, the maximum prices that had been reached in the years of the real estate bubble have been exceeded in recent months”.
Valencia, Catalonia, Madrid and the Canaries have been hit hardest
Not all autonomous communities have seen the same increase with those renting in Valencia, Catalonia, the Canaries and the capital Madrid seeing the biggest hikes according to the study.
Those living in the Valencian Community have seen their rents increase by a whopping 68% over the past five years up from €5.16 per sqm in June 2015 to €8.67 per sqm in June 2020.
Catalonia saw its rental prices increase by 60% from €9.17 to 14.63 per sqm.
Rental prices in popular Madrid increased by 57% from €9.77 to €15.30 per sqm.
The Canaries experienced a rise of 56% up from €6.15 per sqm to €9.61.
When looking at all of Spain’s Autonomous Communities with a cumulative increase in rents: Valencian Community (68%), Cataluña (60%), Madrid (57%), Canary Islands (56%), Balearic Islands (49%), Navarra (44%) ), Murcia (43%), Andalusia (43%), Cantabria (33%), Aragon (32%), Basque Country (31%), Galicia (29%), Castilla La Mancha (26%), La Rioja (26%), Castilla y León (26%), Asturias (21%) and Extremadura (17%).
When assessing the increase per city the report showed that it was Valencia that saw the biggest rise of 77%.
Valencia capital (77%), Murcia capital (58%), Santa Cruz de Tenerife capital (52%), Málaga capital (48%), Madrid capital (47% ), Palma de Mallorca (44%), Alicante / Alacant (41%), Pontevedra capital (41%), Las Palmas de Gran Canaria (40%) and Castellón de la Plana / Castelló de la Plana (40%).
On the other hand, there were 10 cities that were least affected which were: Ciudad Real capital (9%), Badajoz capital (12%), Cáceres capital (15%), Córdoba capital (15%), Zamora capital ( 17%), Salamanca capital (17%), Burgos capital (17%), Jaén capital (19%), Oviedo (19%) and Palencia capital (21%).
Source & Images courtesy of Fotocasa.es