Due to the good pace of employment and shortage of supply, rental prices are growing at a much higher rate than purchase prices.
The average rental price in our country stood at 7.92 €/m2 in 2017; this figure reflects an increase of 9.5% compared to 2016.
The The Balearic Islands and Catalonia are the regions where prices have grown the most.. The regions with the lowest revaluation were Castilla-La Mancha and Extremadura.
There is a correlation between regions that are more economically dynamic and exposed to tourism and this price increase.
Rental market in Spain
On the other hand, holiday rentalslocated in the major tourist areas, focuses on the holiday and short term demandThis reduces the supply of traditional, long-term rental housing and puts upward pressure on rental prices.
Over the past few years, the weight of the renting in Spain has increased significantlyalthough it started from low prices. According to the INEthe percentage of households residing under a rental contract has risen from 9.6% in 2001, to 16.3% in 2016In contrast, home ownership has been reduced from 84.71 PTP3T to 77.11 PTP3T in the same period.
Although this increase in rent is significant, Spain is still one of the countries in the European Union with the highest property ownership rate..
Whether this trend will continue to grow or not depends on a a multitude of factorsThe following are some of the factors that would come into play in predicting whether rents will increase in the coming years: income level, age, level of education or marital status.
To conclude this post on the rental market in SpainIf the situation of the head of household were taken into account, the housing trend in Spain would look like this.
