Rents are rising and prices are falling, so yields are improving for landlords.
Average rental prices rose by 1% in July compared to last year, show the latest figures from the National Institute of Statistics (INE). This is surprising given the glut of property for sale and rent on the market.
Over 6 months annualised rental prices have gone up by between 0.9% and 1.2% per month, whilst house prices have gone down between 4% and 5%, meaning that rental yields are improving. Some good news at least for beleaguered property investors.
But consumer price inflation has risen by 1.9% in the same period, so although yields are rising, rental income in real terms is actually falling.
Rents went up the most in the Balearics (+1.5%), and down the most in Navarre (- 0.5%).