Renters Returning to Spain

Renters Returning to Spain

The Demand for rentals is so high which properties being snapped up

Rents are on the rise in Spain had have increased by around 4.5% over the past year according to data from the property website Fotocasa.

Both supply and demand for and from renters is on the up to create a phenomenon that is affecting the whole country, although certain areas such as Madrid, Barcelona and the Costa del Sol are seeing major rises of up to 20%. The Fotocasa experts also believe that part of this increase in renting demand is because many Spaniards are currently unable to purchase property right now.

The average rent for Spanish property is equal to €7.29 per square metre, with prices rising to up to and over €10 in Cataluña, the Basque Country and Madrid. Ibiza is the area with the highest rent levels with prices exceeding €15. While these rental prices are also increasing they remain much lower than during the 2007 peak; as much as 28% lower. This news is still a reflection of how the property market as a whole is doing on top of all the other key indicators and developments in recent months.

It’s expected that the rental sector will continue to improve over time with high returns on offer for current and prospective landlords. Already rental prices are becoming controversial in places like Barcelona as working class families are being priced out of the city neighbourhoods.

Costa de sol has seen an amazing increase in demand  of rental properties and the trend looks to continue despite Brexit