Up to 1.4 Million Empty Homes in 12 Provinces

According to a recent study carried out by Alquiler Seguro on the rental market in Spain in 2014, there are as many as 1.4 million homes sitting empty in just 12 of Spain’s provinces.

The insurance company analysed 12 national markets: Madrid; Barcelona; Valencia; Malaga; Alicante; Seville; Valladolid; Zaragoza; Navarra; Guipúzcoa; Vizcaya and Alava, which revealed that Barcelona is the province with most empty homes (283,155), followed by Madrid (263,279) and Valencia (214,022).

El Mundo reported that, according to another conclusion of the study, throughout the year, the provinces with the greatest increases in home rental defaults, which showed a general upward trend, were Barcelona (+22.7%), Malaga (+21.4%) and Valencia (+18.5%).

Using their own Rental Housing Market Index (IMAV) the report measured the degree of balance between the supply and demand for home rentals in these markets and concluded that, between both indicators, a more or less even balance existed in all the markets analysed, except in Seville, where they found there to be little demand, and therefore the prices tended to be lower, and Barcelona and Madrid, where the demand exceeds the supply, which could lead to price rises.

Looking at the statistics for some of the provinces: Barcelona has 283,155 vacant homes, 11% of the total, and 311,653 rented homes, 17.8%, while the defaults on leases have grown by 22.7% compared to the previous study, to stand at an average of 12,897 euros.

Madrid has 263,279 vacant homes, 9.1% of the total, while 255,254 are rented, 13.6%, and the rental defaults have risen by 16.8%, resulting in an average of 14,242 euros.

In Valencia there are 214,002 empty dwellings, 14.7% of the total, and 63,175 rented, 8%, while the average rental default stood at 6,415 euros, 18.5% more than a year ago. The number of empty homes in Málaga was 120,611, 13.4% of the total, with 47,444 homes rented, 10.9%, and the rental defaults increased by 21.4% to an average of 7,369 euros.

In the Basque country, the province of Vizcaya has most empty homes, with 43,704, 8.2% of the total, 27,475 are rented and rental defaults increased by 2.8%, to 6,512 euros on average.