The residential lease chains three consecutive years of increases. Leaving behind seven years to lower to increase rental income in most communities, provinces and capitals.
Spain is recovering lost time in residential rental. At the end of 2017, prices registered a new annual rebound. The most intense of the last three years.
The report ‘Rental housing in 2017‘, drawn up by Fotocasa, points to an 8.9% increase in rental income. This increase has been common in fifteen autonomous communities. Catalonia being the only community that climbs beyond 10%.
Of the set of Spanish provinces, forty increase their income. Barcelona being the most expensive province in the entire State. While in the two large capitals, they are practically all the districts that revise upwards the rents. Twenty in the capital and eight in the city of Barcelona.
Rent rents, driven by the constant increase in demand, are far from stepping on the brakes. Like the profitability of those who buy to rent.
More than 30 months with interannual increases
The rental price has risen 8.9% in 2017. The biggest increase since the Fotocasa index exists. Created in early 2006.
After this last revaluation, in December 2017, the average rent reaches 8.15 euros per square meter per month. A price comparable to that registered at the end of 2010.
Despite this latest rise in rental income, prices are still far from the historical maximum reached in May 2007 (€ 10.12 / m2). Against that figure, rents still accumulate a fall of 19.5%.
A panorama that will allow future increases. In fact, since March 2015, rental income has only increased. Accumulating 34 consecutive months in positive.
Reasons to continue trusting in the rent
Among the reasons to continue trusting in the rental market, the loss of purchasing power is one of the most important.
The requirements of financial institutions mean that an increasing number of Spaniards have difficulties in accessing housing purchases.
Although it is also worth noting the pressure exerted by investors. Interested in the acquisition of homes to put them on rent and take advantage of the great profitability offered by the market.
Without forgetting the impact of tourist rental in Spain, the second country with the highest number of visitors according to the UNWTO.
Nor is the change in the mentality of the residents. More and more open to the rental of housing in a country traditionally owners.
Rise in rents of fifteen communities
The autonomous communities add three years of change of trend in the rental market.
At the end of 2017, a total of 15 Autonomous Communities recorded interannual increases. Being Aragón (-1.7%) and Navarra (-0.3%) the only exceptions.
The highest increase in rental income occurs in Catalonia (+ 10.3%). The only community that exceeds a ten point rise.
Followed closely by the Valencian Community (+ 9.6% and € 6.32 / m2), Canary Islands (+ 8.5% and 7.18) and the Community of Madrid (+ 6.3%).
While, in absolute values, Catalonia is also the most expensive community with € 12.39 / m2. Surpassing Madrid (€ 11.45 / m2), Basque Country (€ 10.70 / m2) and Balearic Islands (€ 9.71 / m2).
Forty provinces raise rental income
Of the 50 provinces studied, 40 have increased incomes in the last year. In front of 10 that fall.
The largest interannual increases occurred in Castellón (+ 21.6%), Guadalajara (+ 10.9%), Valencia (+ 9.7%), Las Palmas (+ 9.3%), Granada (+8.6) %) and Barcelona (+ 7.9%).
While the provinces that accumulate the biggest falls, from historical highs, are Huelva (-47.1%), Cádiz (-39.5%), Zaragoza (-37.8%) and Almería (-35.9%).
Once again, the province of Barcelona is once again the most expensive in all of Spain. Reaching 13.70 euros per square meter per month. Ahead of Guipúzcoa (11.62 € / m2), Madrid (11.45 € / m2) and Vizcaya (10.66 € / m2).
Madrid and Barcelona continue to raise prices
At the level of municipalities, a total of 156 municipalities have increased rental income. Against the 53 that have lowered prices and the 22 that have left them the same.
The two large cities, Madrid and Barcelona, ??have a price higher than the national average.
Of the 21 districts in Madrid, 20 have raised rents. And only the Central District has seen its revenues fall (-12.8%). From € 14.94 / m2 monthly, at the beginning of the year, to € 13.13 / m2 at the end of 2017.
At the other extreme, Hortaleza rose 13.1% year-on-year. Overcoming Puente de Vallecas (+ 12.9%) and Ciudad Lineal (+ 11%).
Of course, in absolute values, the Chamberí district is still the most expensive with € 16.41 / m2 per month. Ahead of Salamanca (€ 16.07 / m2), Tetuán (€ 14.94 / m2), Chamartín (€ 14.46 / m2) and Retiro (€ 14.35 / m2).
Of the ten Barcelona districts, eight rent increases. Highlighting Sant Andreu (+ 12%), Grace (+ 9.5%) and Les Corts (+ 8.1%).
While the falls are concentrated in the districts of Eixample (-1.4%) and Ciutat Vella (-1.2%).
A variation that does not alter the classification by prices. Where the Ciutat Vella district stands out (€ 17.16 / m2 monthly), compared to Sarrià-Sant Gervasi (€ 16.63 / m2), Eixample (€ 15.66 / m2), Les Corts (€ 15.47) / m2) and Sant Martí (15.43 € / m2).
