The average rental price of a home in Spain increased by 3.4% in the month of July 2023 compared to the same month of the previous year. This would be the smallest year-on-year increase since September 2022, when rent only increased 2.2% over the previous year.
Regarding the comparison between months, the price of rental housing fell by 0.2% in July compared to the values registered in June. This increase caused the average cost per square meter to reach 11.59 euros, according to the Fotocasa Real Estate index.
The director of Studies and spokesperson for Fotocasa, María Matos, has highlighted that, despite the slight slowdown that has been seen in the increase in rental prices, “the rental price continues to skyrocket in the most stressed autonomous communities”, returning to reach all-time highs in up to nine territories. In some communities, the rental price increase has reached 10% or even 30%.
The few go up due to the lack of supply
According to Matos, the available residential rental supply “is so low” that the pressure of demand pushes the price up in some areas, to record levels. “A very significant volume of properties has been sold, they have been converted to tourist rentals or they remain empty,” she explained.
According to data from Fotocasa, 16 autonomous communities raised the rental price in July in the interannual rate. Double digits were exceeded in five regions, with the Balearic Islands leading the way (+30.1%). It is followed by the Canary Islands (+19.1%), Cantabria (+16.6%), the Valencian Community (+13.7%) and Madrid (+10.6%).
Andalusia (+8.7%), Galicia (+8.4%), Catalonia (+8.1%), the Basque Country (+7.6%), Navarra (+ 5.3%), Asturias (+4.8). %), Castilla y León (+4.8%), Extremadura (+3.5%), La Rioja (+2.7%), Aragón (+2.3%) and Murcia which, with a year-on-year rise of 0.7%, was the region where rental prices rose the least in July.
For its part, the only community where prices fell compared to July 2022 was Castilla-La Mancha, with a decline of 2.9%.
According to Fotocasa, nine communities exceeded the maximum rental prices per square meter per month in July. The areas of Spain with the highest prices in the entire historical series are the Balearic Islands (17.17 euros/m2 per month), Madrid (17.02 euros/m2 per month), Catalonia (15.99 euros/m2 per month), Canarias (12.90 euros/m2 per month), Asturias (8.92 euros/m2 per month), Galicia (8.56 euros/m2 per month), La Rioja (8.52 euros/m2 per month), Castilla and León (8.38 euros/m2 per month) and Extremadura (6.43 euros/m2 per month).
The most expensive homes to rent are in the Balearic Islands and Madrid (17.17 euros/m2 per month and 17.02 euros/m2 per month, respectively); Catalonia (15.99 euros/m2 per month), the Basque Country (14.54 euros/m2 per month), Cantabria (13.04 euros/m2 per month), the Canary Islands (12.90 euros/m2 per month), Community Valenciana (11.37 euros/m2 per month) and Navarre (10.91 euros/m2 per month).
