Good news for some people looking to rent a home in Barcelona, and bad news for landlords already nursing capital losses. Rental prices are falling sharply in Barcelona, reveals a new study by local real estate consultants Forcadell. Average monthly rental costs for a typical 75m2 flat has fallen below 1,000 Euros/month, for the first time since 2007.
In the first 3 months of this year the average cost of renting a home in Barcelona fell by 6% to 965 Euros/ month, on top of a 9% fall in 2007. Last year rents fell the most since 1991, and are expected to continue falling this year.
Behind Barcelona’s falling rental prices lies a moribund property market and an economic recession. Unable to sell, many owners are putting their properties up for rent, pushing up the supply of flats for let. At the same time, the recession and rising unemployment means a dwindling number of people that landlords would like as tenants. Thanks to rental laws that favour tenants, landlords in Spain have to be careful whom they rent to.