The price of rental housing continues to rise and the Community of Madrid is at the head. This conclusion is drawn from the report that was recently published by the Ministry of Public Works and it was based on security deposits from only eight autonomous communities. This report shows facts and figures from Andalusia, Aragón, the Balearics, Castilla y León, Catalonia, the Community of Valencia, Galicia and Madrid. Recently, in this blog, we wrote an article about the moderation and slowing down of prices in housing. We pointed out that this moderation applied to buying and selling but not to renting. The fact is that in Spain, it is currently cheaper to buy property rather than to rent it. This does not surprise us once we have analysed the increase in the price of renting year after year. According to the last Ministry of Public Works report carried out in 2018, there has been an increase in renting prices in all these eight autonomous communities. Let us analyse this in more detail.

THE COMMUNITY OF MADRID IS IN THE LEAD

In the Community of Madrid in 2018, the price of rental housing increased more than 15% with regard to 2017. This fact speaks for itself, and if we pay attention to the price per m2, then the increase is 10,7€. These facts and figures give us an idea of how the price of rental housing has increased in Madrid in only one year. In Catalonia, the rise was much less striking, 6,7% and around 8,7€ per m2. As for the rest of the communities which were analysed by the Ministry of Public Works, the Balearics come close to Madrid with an increase of 14,9% and 7,9€ per m2. Next come Aragón with 11,7% (5,8€ per m2), and the Community of Valencia with an increase of 10,2% and 5,4€ per m2. After Catalonia come Castilla y León (4,5% rise, 4,7€ per m2), and lastly Galicia (4,2% rise and 4,7€ per m2). Regarding rental prices, the Community of Madrid is also at the head with an average rental price of more than 800€ for property with less than 90 m2. The average is exactly 819€ for 86 m2. It is therefore not surprising that many families consider the option of buying because rental prices are very high. Madrid is followed by Catalonia (an average of 693€ for a 98 m2 property). After, the Balearics (687€ for 100 m2 property), the Community of Valencia (535€ for 105 m2), Andalusia (503€ for 97 m2), Aragón (453€ for 83 m2), Castilla y León (29€ for 99 m2), and lastly Galicia (418€ for 99 m2).

SAN SEBASTIAN, THE MOST EXPENSIVE CITY

Regarding rental prices, San Sebastian is the most expensive city in Spain. Here, the price increase is of 14€ per m2. After, comes Barcelona with 12,5€ per m2. Then, Madrid (12€ per m2), and Ibiza (11,8€ per m2). If we consider which are the most expensive areas for rental housing in Spain, we must highlight Boadilla del Monte (1.200€ per month), next, Pozuelo de Alarcón (1.173€ per month), and Sant Cugat del Vallés (1.150€ monthly). Has rental housing in Spain reached its peak or will it become even more expensive? We will be on the lookout.

Picture 02: Zarateman