Renting is King?

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This topic contains 7 replies, has 4 voices, and was last updated by Profile photo of logan logan 5 years, 8 months ago.

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  • #56189
    Profile photo of logan
    logan
    Participant

    According to the Professional Association of Real Estate Experts the price of rental property in Spain has fallen by as much as 30% over the past 6 years.
    This organisation is supposed to be a sort of quasi-regulator of estate agents but do little in practice.
    I would not normally take much notice of what publicity they churn out. However they go on to say that the amount of property available for rent has increased by as much as 300% in some regions and they expect rent levels in cities such as Madrid, Barcelona and Zaragoza to continue to fall in the coming year.
    They maintain that demand for rental property will be strong as more people are forced out of their homes due to mortgage default.
    The other factor for a strong rental market according to this organisation is prospective property buyer’s lack of confidence that property will not continue to fall so prefer to wait and rent.
    I’m a little sceptical because the normal market economic rules dictate that strong demand means only one thing. Higher prices not lower.
    Yet in today’s climate perhaps norms no longer apply.

  • #103857
    Profile photo of Anonymous
    Anonymous
    Participant

    “but do little in practice “
    Why should the different !!

    Who, would like to rent the property out with laws in favour of the tenants, Courts system ineffecient. Due to this a large number of properties will not come onto the market & as such create an artificial vacum.

  • #103858
    Profile photo of Anonymous
    Anonymous
    Participant

    “but do little in practice “
    Why should they be different !!

    Who, would like to rent the property out with laws in favour of the tenants, Courts system ineffecient. Due to this a large number of properties will not come onto the market & as such create an artificial vacum.

  • #103861
    Profile photo of logan
    logan
    Participant

    ‘Do little’ to regulate estate agents and their dubious practices is supposed to be their reason for being.
    However I realise that’s all ‘my eye and peggy martin’ as my old dad used to say. 😆 No idea why.

  • #103864
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    no one knows the current state of the rental market in spain. Too many landlords don’t declare they are renting. Not including what Shakeel has said, the system is too time consuming for the landlord, nor are the benefits for declaring a property is rented attractive enough.

  • #103870
    Profile photo of Anonymous
    Anonymous
    Participant

    I thought burger was King !!!!!!!! sorry, sorry, could not resist.

  • #103871
    Profile photo of adiep
    adiep
    Participant

    @logan wrote:

    According to the Professional Association of Real Estate Experts the price of rental property in Spain has fallen by as much as 30% over the past 6 years.

    30% is about right, its what ive seen here (with a very big rental market) and prices are still dropping.

  • #103875
    Profile photo of logan
    logan
    Participant

    The amount of rental property available all over Spain is huge and far outstrips demand otherwise rents would rise not fall.
    I suspect the mortgage defaulters who are unemployed are either remaining in the property paying interest only or move in with family.
    Property sharing between families is the future, if you could stand it! Spanish families like living together even in very small spaces.

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