Rental prices rise by 8.8 percent in March and peak in major cities!

In the first quarter of 2018, costs of rental of properties increased by 8.8%, to EUR 10.60/m2 (1 euro/sq ft) per month. According to an idealista rental price report, all Spain's autonomous regions recorded increases from January to March. However, rents appear to peak in large cities, with lower increases in Barcelona (0.8%), Seville (1.9%) and Madrid (2.7 percent ). اعلانات

According to Fernando Encinar, idealistic research director, "the greatest increase was from large markets, where rents appear to have reached a ceiling, to other capitals, where up until now the impact of increases have been less so, such as Cuenca, Girona, Saragossa or Guadalajara. In cities like Malaga and Alicante, landowners have already begun lowering their rents and Barcelona has also seen decreases in its interannual growth. The data show that Spain's natural rental ceiling lies within the actual potential of potential tenants, and not in market intervention, an attempt already tested in Paris and Berlin, with very bad results.

'It is better to normalis prices: encourage empty home owners to put them on the rental market by ensuring legal protection and legislation, supporting public-private housing rental projects on public endowment land, tax breaks, support for renovating houses to be rented, zero squatting tolerance, express licenses to change the use of other forms of housing

In Spain, the average rental price has increased to 18.2% year-on-year as compared to January-March 2017. The Canary Islands (26.6%) and the Balearic Islands (18.2%) have increased the most, while the Community of Madrid (9.6%) and of Catalonia (6.2%) have grown more moderately.

Last year, the big provincial capitals had a mixed cycle. Whilst Madrid grew by 7.8%, Barcelona dropped to 2.7% year on year. The year's biggest growth was in Santa Cruz de Tenerife (24,3%), Girona (19,4%) and Las Palmas de Gran Canaria (19.2 percent ).

Self-government Communities

All autonomous communities are priced higher than three months ago. In the Balearic Islands, the biggest increase was recorded with a price up 12.1%. Increases in Cantabria (7.2 percent), Aragon (6.7 percent), Castile and Leon and the Valencia Community followed (4.8 percent in both cases). The smallest increase was observed in La Rioja (1.4%), Navarre (1.5%), Castilla-La Mancha (2.3%) and Catalonia (2.4 percent ).

Madrid and Catalonia are the most costly property rental communities, with EUR 14.80 per m2, or EUR 1.37 per sq ft in both cases. The Balearic Islands are followed (€14/m2 or 1,30 euro/sq ft) then the Basque Country (€11,60/m2 or 1,07 Euro/sq ft) and the Canary Islands (€9,50/m2 or EUR 0,88/sq ft). The other parts are the most economic communities, namely Extremadura (EUR 4,20/m2 or 0,39 EUR / ft), Castile-La Mancha (EUR 4,80/m2 or 0,44 Euro / ft squared), and Rioja (EUR 5,20/m2 or 0,48 Euro / sq ft).

Provisions

Over the winter, 38 provinces have seen their prices rise. The largest rise was recorded in the Balearic Islands, with prices up 12.1%. There were also significant increases in Huelva (9. 6%), Saragossa (8.5%), Cuenca (7.6%) and Cantabria (7.2%). Tarragona (-7.9 percent), Granada (-3.3 percent) and Lleida experienced the greatest drop (-2.9 percent ).

Barcelona (16 euro/m2 or 1.48 euro/sq ft per month), Madrid (14.8 euros/m2 or 1.37 euro/sq ft) and Iceland (14 euro/m2 or 1.30 euro/sq ft) rank the most expensive provinces. Cáceres is the lowest country to rent a house, at 4 euro/m2 or 0.37 euro/sq ft per month. The following will be Ávila (€4,20/m2 or €0.39/sq ft) and Zamora (€4,3/m2, or EUR 0.40/sq ft).

Capitae

Cuenca and Girona are the provincial capital cities where rent prices rose the most in the last quarter, with an increase in rental prices of 7.4 percent for both cities. Zaragoza also increased substantially and grew by 6.9 percent, followed by Guadalajara (5.9 percent ). The price in Madrid rose by 2.7%, while the increase in Barcelona was 0.8%.

On the contrary, Tarragona is where owners are requesting 4.6% less to rent their homes than last quarter.. The decreases in Granada (-4.5%), in Pontevedra (-2.5%), in Málaga (-2.2%) and in Leon were followed by (-2.1 percent ).

Barcelona is the capital of the most expensive city (€17,60/m2 or EUR 1,63/sq ft), followed by Madrid (€15.90/m2 or EUR 1.47/sq ft), St. Sebastian (€14,60/m2 or EUR 1,35/sq ft.). The lowest capital are Zamora (4.50 €/sq ft or 0,41 €/sq ft), Cáceres (4,60 €/sq m or 0,42 €/sq ft) and Avila (4,70 €/sq m or 0,43 €/sq ft).

The idealist price index of property

Idealista is the most common property marketplace in Spain to purchase, sell and rent. The idealista research department has been analyzing real estate prices since 2000 since thousands of properties are currently on sale. With 18 years of research, the idealist has become the standard source of data for innumerable analytical teams from banking and financial institutions to public entities.

To compile this property price index, idealista analyzed 54 323 property listings that were announced in its March 2018 database. In order to ensure correct data, properties that were previously priced outside the market, as in single-family homes, were not counted in the analysis, since the results were skewed in some areas. The price is not offered as the sample is not adequate for municipalities with less than 50 properties. The property price index of Idealista is compiled using price offer per built-in square meter. The full report can be downloaded in Spanish.