SPANISH rents are on the rise, increasing an average 4.5 per cent over the past year according to the renowned property website Fotocasa.
Both supply and demand are strongly rising, creating a solid national phenomenon, although districts of Madrid and Barcelona contribute with huge increases of up to 20 per cent. Experts at Fotocasa also attribute the increases to a change seeing more Spaniards in favour of renting as a huge segment of the population is unable to purchase a home at present.
Average rent now stands at €7.29 per square metre, with Cataluña, the Basque Country and Madrid all exceeding €10. On a municipal level Ibiza has the highest advertised rental prices in excess of €15. Though steadily climbing, rental rates are still sizeably lower than their peak in 2007, falling 28 per cent since then, but the news reflects well on the wider property market that has seen excellent developments across the vast majority of key indicators.
With high returns available for current and prospective landlords, it’s likely the sector will continue to expand. In Barcelona increasing rental rates are becoming controversial as they exclude local working class families from city neighbourhoods.