18% Increase in Spain Rental Prices in 2017

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spain rents 2017

The price of rental housing has experienced a rebound in Spain during 2017 and has ended the year with an average increase of 18.4%, leaving the the square meter cost at 9.7 euros per month, according to the latest Idealista report. The fourth quarter has slowed the pace of growth with prices rising by only 3.3%. The two Canarian capitals registered the highest increases, above 22%. On the other hand, Barcelona (-2.4%) and Cáceres (-1%) were the only cities where rents fell.

Although the upward trend has been easing in the last quarter of the year, it should also be noted that not all markets have increased their rental income in the same way: the Canary and Balearic archipelagos together with the Andalusian capitals of Malaga and Seville, and the Catalan Girona lead the increase, Madrid, which together with Barcelona has traditionally been the spearhead of rental in Spain, is half the national average, after four years of year-on-year increases, Barcelona and Cáceres end the year with decreases in rent.

All the autonomous communities register higher prices than they had a year ago. The biggest increase has occurred in the Canary Islands, where owners ask for 27.8% more for leasing their homes than a year ago. The Balearic Islands (22.1%) and Andalusia (15.5%) come in second and third on rent increase. Extremadura, on the other hand, experienced the lowest increase (0.9%), followed by La Rioja (2.5%), Castilla-La Mancha, Asturias (5.4% in both cases).

Catalonia and Madrid (with 14.4 euros / m2 in both cases) are the most expensive autonomies. Baleares follows them (12.5 euros / m2) as well as Euskadi (11.2 euros / m2). On the opposite side of the table we find Extremadura (4.1 euros / m2), Castilla La Mancha (4.7 euros / m2) and La Rioja (5.2 euros / m2), the most economical communities.

Rent increases in Spain by Province

Only 3 provinces have seen their prices fall during 2017. The biggest decrease has been registered in Cáceres, where prices have fallen by 5%, followed by the decreases in Cuenca (-2%) and Burgos (-0.2%) ). The largest increase, however, has occurred in Las Palmas (26.9%), Baleares (22.1%) and Santa Cruz de Tenerife (21.8%).

The ranking of the most expensive provinces is headed by Barcelona (15.8 euros / m2 per month), Madrid (14.4 euros / m2), Guipúzcoa (12.9 euros / m2) and Baleares (12.5 euros / m2) ). Jaén and Cáceres are the cheapest provinces (3.9 euros / m2 in both cases), followed by Ávila (4.1 euros / m2) and Cuenca (4.2 euros / m2).

Rent Increases by Spain Capital Cities

Cáceres and Barcelona are the only capitals in which the rental price fell during 2017. The Catalan capital recorded the largest drop, with a decrease of 2.4%, while in the city of Extremadura the decrease was 1%.

In all other capitals prices are now more expensive than 12 months ago. Santa Cruz de Tenerife is the capital in which the rental price has grown the most during 2017. With an increase of 22.7% in the rent of its homes, the prices have increased to 8 euros / m2 per month. There has also been a considerable increase in Las Palmas de Gran Canaria, where they have risen by 22.5%, followed by Girona (20.5%) and Tarragona (17.6%). The list of capitals with increases of more than 15% is completed by Granada (16.8%), Palma (16.2%), Malaga (15.4%) and Seville (15.2%).