- Housing: The rental sees the first price drops in a key year
Living for rent in Madrid is almost five times more expensive than doing it in Teruel. 1,559 euros separate a province capital from another in terms of monthly income, from 1,990 euros that tenants had to pay on average in Madrid during 2019 and the 431 euros they paid in Teruel. They are the two poles of the rental market in Spain last year, according to data collected by Pisos.com, which also indicate that the sector closed the year with an increase of 8.5% over the previous year.
In light of the data thrown by the real estate portal, Ferran Font , director of Studies of the firm, notes that "although it has taken time to arrive, self-regulation of income is already a reality in the big capitals, which both have abandoned interannual growth digits ". For the spokesman, "it was inevitable that rents would return to a sustainable path after touching the roof, instead of adjusting to partisan initiatives that the only thing they get is less efficiency and professionalism."
In spite of this, heterogeneity remains one of the main characteristics of the rental market in Spain: while some cities suffer from real problems of accessibility to housing, others even register declines in purchase and lease prices. And the same happens in the comparison between communities . Thus, the most expensive regions to live for rent in December 2019 were Madrid (1,744 euros per month), Balearic Islands (1,394 euros) and Catalonia (1,249 euros), while the cheapest income was recorded in Extremadura (459 euros), Castilla-La Mancha (585 euros) and Galicia (596 euros).
As for provincial capitals , Madrid was the most expensive for tenants with an average income of 1,990 euros per month , followed by Barcelona (1,949 euros per month) and Palma de Mallorca (1,338 euros). On the contrary, Teruel was the cheapest with 431 euros of monthly rent. Other economic provincial capitals were Lugo (442 euros) and Ciudad Real (456 euros). Santa Cruz de Tenerife (5.42%) starred in monthly increases, while Tarragona (-5.47%) was the capital that was most devalued in this period.
The sector considers 2020 as a key year of transition and moderation in the Spanish real estate market after several years marked by the constant increases in housing prices for sale and rent.
With regard to the lease segment, the sector is very aware of the measures announced by the new Coalition Government to try to stop the escalation of recent months. Among other things, the Pedro Sánchez Executive contemplates establishing mechanisms to limit rental prices in the most stressed areas.
"The increases experienced in the most overheated areas have highlighted the great imbalance between supply and demand. Although the bubble is ruled out, it has been inevitable that the accelerated and excessive rebound of the tenant's effort rate has reached the political terrain, "admits Ferran Font. However, he does not believe that these types of measures have such a positive effect as they claim. "The measures that are coming are going to introduce serious differences between regions and cities, given that there will be territories that accept the limits suggested by Development and others that develop their own ad-hoc regulations."
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