Residential rents drop 7% in 2008

The average cost of renting a home in Spain fell 7% in 2008, according to the latest report jointly prepared by – one of Spain’s biggest property portals – and IESE – one of the world’s leading business schools.

Residential rents are now back to where they were in December 2006, when Fotocasa and IESE first started collecting data to track the rental market.

Rents reached their peak in May 2007, at 10.12 Euros/m2/month, and have now fallen to 8.98 Euros/m2/month, a fall of 11.3% in nominal terms. Average Spanish residential rental prices have fallen continuously since March 2008.

The type of rental property most in demand is a flat of 60m2. The average monthly rent for this type of property is 539 Euros per month.

Residential rents rose in 6 region: Galicia +7.6%, Cantabria +5.8%, The Basque Country +5.6%, Extremadura +3.8%, Asturias +1.4%, and The Canaries +0.6%.

Residential rents fell the most in The Valencian Region -8.8%, Catalonia -8%, Castilla-La Mancha – 6.3%, Madrid -4.4%, and Aragon -4.2%.

By province, rents fell the most in Valencia -9.1%, Alicante (Costa Blanca) -8.3%, Girona (Costa Brava) -7.8%, Toledo -7.4%, and Lleida -6.8%. They rose the most in Huelva (Costa de la Luz) +18.8%, Cadiz (Costa de la Luz) +13.7%, Leon +7.8%, Vizcaya +7.5%, and Ourense (Galicia) +7.4%.

By municipality, rents fell the most in Vilanova i la Geltrú (Costa Dorada, Catalonia) -16.8%, Manresa (Catalan industrial belt) -13%, Roquetas del Mar (Costa Almeria) -11.1%, and Seseña (Madrid dormitory town) -10.6%. They rose the most in El Puerto de Santa María (Costa de la Luz) +17.2%, Leon +11%, and Cartagena (Murcia) +10.4%

Rents were most expensive in Barcelona (12.15 Euros/m2/month) and cheapest in Ourense (4.66 Euros/m2/month).