SPAIN’s rental prices have fallen for the first time since the country’s recession due to the Covid pandemic.
Rental prices have fallen in large cities including Barcelona, Madrid and Sevilla, lowering the average price of the cost of renting across Spain.
The country’s rental market had previously been booming, with prices rising since June 2014, however the economic fallout of the Covid pandemic has seen them fall for the first time since.
According to real estate company Idealista, the average price of rental spaces in Spain is now €11 per square metre, 0.1 per cent less than last year.
Economist Gonzalo Bernardos told one publication the change was mainly down to “oversupply,” with the number of properties available to rent in Spain up by 178 per cent.
According to property analyst company Casafari, this increase in supply could be because owners of holiday rental properties are not turning to traditional rental while Spain’s tourism figures are down.
Lazaro Cubero, Director of Analysis at Grupo Tecnocasa, said he also believes the change is down to a lack of money among families.
He said: “If you suddenly find yourself in an ERTE [temporary dismissal], you see that you have to pay less”
“Many people left the property they were in to look for a cheaper one. We already detected a movement for this reason in some cities during the first lockdown.”
He added most families were now looking for more space, saying, “these are people who want to pay the same, but with more metres.”
The news comes after it was last year announced that landlords of multiple properties will have to offer rental discounts to struggling bars and restaurants.
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