Nationwide, rents are still falling a fraction or even rising slightly, depending on whom you ask, but are clearly on the rise in Barcelona and Madrid, in a positive sign for homeowners and investors after years of declines.
Average Spanish rents were down 0.81% in October compared to last year, according to the latest report on the Spanish rental market prepared by the franchise chain of estate agents Tecnocasa, in collaboration with Pompeu Fabra University in Barcelona.
But according to the rental price index published by the property portal Fotocasa.es (see chart above), rental prices rose in all regions over 12 months to the end of November. Prices rose the most in Catalonia (+10.6%), followed by the Balearics (+7.8%) and Madrid (+6.3%).
“After falling by 30% during the crisis, rents are now returning to positive territory, which we haven’t seen in eight years,” explains Beatriz Toribio, head of research at Fotocasa. Although rents are “rising fast in some areas with strong demand” she forecasts they will be generally stable in 2016.
RENTAL PRICE BY REGION
By autonomous region, rents are highest in the Basque Country (10 €/m2/month), followed by Madrid (9.7 €/m2/month) and Catalonia (9.7 €/m2/month).
By province, rents are highest in Barcelona (10.7 €/m2/month), say Fotocasa, and according to the Tecnocasa / Pompeu Fabra University report, rents rose 6.19% in Barcelona, and 4.67% in Madrid over 12 months to the end of October.
Demand for rental property is rising as a consequence of the Spanish property crash. 21% of Spanish families now live in rented homes, compared to 10% a few years ago, reveals data from Eurostat.
Rental yields are 6.76% on average in Spain, rising to 7.68% in Madrid, and 6% in Barcelona, claims the Tecnocasa / Pompeu Fabra University report.