Rental prices have fallen for seven consecutive months, suggesting the foundations of the Spanish housing market are still fundamentally weak.
Rental prices fell 0.5pc in October compared to the same month last year, according to data from the National Institute of Statistics (INE).
Rental prices have now fallen for seven consecutive months, implying that the supply of rental homes outnumbers demand.
You would expect the mortgage drought to drive up rental demand, but clearly there are other factors at play, like a falling population, family consolidation, and cultural habits, pushing in the other direction.
It’s another sign that Spain has a glut of residential property, not in prime areas of the biggest cities and the coast, where rental fundamentals are, strong but rather in and around provincial capitals, where the population is falling, and too many homes were built in the boom.
Ry region, rental prices fell the most in Navarre (-2-2pc), followed by Madrid (-2pc), Murcia (-1.8pc) and La Rioja (-1.5pc). Rental prices rose in Galicia (+1pc), and Catalonia (0.5pc), amongst others.