Home Rental Prices in Spain Fell by 4.7% in 2012
January 28th, 2013
Home rental market prices continued to fall in Spain in 2012 and ended the year with an average rent of 598 euros per month, which represents a decrease of 4.7% compared to 2011, according to figures gathered by real estate portal, pisos.com.
The portal’s data shows that no region experienced increases in rents over the past year, with the largest decreases being those registered for Asturias (-8.3%), Cantabria (-7.98%) and the Basque Country (-7.65%).
The report notes that the most expensive regions to live in rented accommodation in December 2012 were Madrid (896 euros per month), the Basque Country (889 euros) and the Balearic Islands (728 euros), while cheaper rents were found in Extremadura (402 euros), Castilla y León (481 euros) and Castilla-La Mancha (481 euros).
With regard to the provincial capitals, Madrid is the most expensive for tenants with an average rent of 1,038 euros a month, followed by San Sebastian (987 euros) and Bilbao (917 euros).
Renting Gaining Weight Over Purchasing
The Managing Director of the real estate portal, Miguel Angel Alemany, indicated that the gradual lowering of rental prices is allowing rental properties to gain a market share compared to home ownership, and stated that “an affordable monthly payment makes it easier for a tenant to choose this option for gaining access to housing, especially if their purchasing power still does not allow them to buy their own property”.
According to ABC News, Alemany said he considers that the rent reform being debated in Parliament will drive and regenerate this market, and he also noted the arrival on the scene of Socimi (Listed Real Estate Investment Companies) which has also opened business prospects for medium and large companies and banks. He said: “If the first companies start to work well, then in the future they will be excellent channels for managing rental properties.”