The average price for long-term rentals in Spain fell by 0.7 per cent in October compared to the same month in 2013, according to the Consumer Price Index (CPI). This means prices have been falling for 19 consecutive months. This decrease is sharper than the general CPI (-0.1 per cent).
Rental prices went down by 0.1 per cent in the month and by 0.6 per cent so far this year. Regionally, the monthly rate for long-term rentals fell in 15 autonomous regions. Asturias was the only region where it rose (0.1 per cent) and prices remained static in Catalonia.
The regions with the biggest price drops were Navarre (-2.3 per cent), Murcia (-2.1 per cent), La Rioja (-1.7 per cent), Madrid (-1.4 per cent), The Valencian Community (-1.2 per cent) and Castilla La Mancha (-0.9 per cent). Andalucia and Extremadura both saw a 0.8 per cent fall, and prices dropped by 0.7 per cent in the Canaries, 0.6 per cent in Aragón, Cantabria, Castilla y León, 0.4 per cent in the Basque Country and by 0.2 per cent in the Balearics and Galicias.
At the same time, in Spain’s autonomous cities, prices went up by 0.7 per cent in Melilla and down by 0.3 per cent in Ceuta.
With national average rental prices falling by 0.7 per cent in October, whilst average Spanish property prices declined by 4 per cent over the same period according to Tinsa, the average rental yield must be increasing, to some extent compensating investors for capital declines.