Rents continue to rise

RENTAL INCREASES: 2.4 per cent rise this first quarter. Photo: Shutterstock.

RENTS in Spain have risen by an average of 2.4 per cent during the first quarter of 2019.

The average price per square metre when renting a home now stands at €10.7 per month, according to a report by Idealista property website.

Fernando Encinar, head of studies at Idealista, said: “During the first quarter prices have been fairly weak across all regions, but in cities like Madrid rather than a slow-down there seems to have been a slight acceleration.2

He is putting the responsibility for such rises at the doorstep of the government, saying: “The data confirms what we have been saying for years: the rental market is regulated without the need for intervention by the State and when the State acts it produces effects contrary to those desired.”

In addition to price rises, the latest changes introduced into the market by royal decree have led, among other things, to rents signed in the last six months being governed by three different legislative regimes, depending on the day on which they were signed.

In this sense, an extension of the duration of contracts has led to landlords being more choosy about tenants. This has made it harder for the most disadvantaged people such as single-parent households and pensioners to find affordable rented accommodation.

Madrid and Catalonia are the most expensive communities to rent a home in (€14.5m2 and €13.8m2 respectively). They are followed by the Balearic Islands (€12.8m2) and below them are the Basque Country (€11.2m2) and the Canary Islands (€9.6m2). At the other end of the scale are Extremadura (€5m2), Castilla La Mancha (€5.2m2) and La Rioja (€5.9 m2).

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Written by

Dilip Kuner

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