Rental prices in Spain are rising four times faster than house prices, according to research by the Spanish appraisal and advisory company Gesvalt.
Rental prices have risen by a national average of 8% in the first six months of the year, compared to a 2% average increase in Spanish house prices, according to the latest report from the company.
The average price of property in Spain in terms of Euro per square metre stood at 1,263 €/m2 at the end of June, according to their research.
The report paints a picture of a sustained recovery in the Spanish house market. “All the data confirms a path of sustained growth nationally that began several quarters ago, although now more moderate and less intense than in previous quarters,” explains María Enríquz, Director of Research at Gesvalt.
Nevertheless, some areas are doing better than others. For example, over the last six months house prices have risen in autonomous regions like La Rioja (+9%) and Catalonia (+7%), yet fallen in Navarre (-5%), and the Valencian Community (-4%).
Other regions where house prices are on the rise include Murcia (+6%), the Basque Country (+5%), Asturias (+4%), and the Canary Islands (+4%).
House prices reportedly fell by 1% in the Balearics – a regional market that most other studies show has been one of the hottest in Spain in recent years.
Turning to transactions, Gesvalt point out that home sales in the first six months of the year (117,477) were up 19% on the same period last year.
Foreign demand is playing a key role in the recovery, argues Sandra Daza, Managing Director. “It’s important to note that along with an increase in local demand for housing, we are still seeing a strong rate of purchases by foreign investors thanks to both the good supply of property in some areas and the level of prices accessible to them.”