In Spain, the rental of housing gets cheaper after having gone through a steady rise that has lasted for months. This is the conclusion that different real estate portals have reached, after having confirmed that, during this last September, rental income in the main Spanish cities has dropped when compared to the previous year. It was precisely last year, in this same blog, that we wrote an article about the price increase of rental housing.  We also pointed out that it was not an easy matter to find property for rent in cities like Madrid or Barcelona and because of this, housing prices had continued to rise month after month. The irruption of the coronavirus has shaken the very foundations of nearly everything in 2020. As regards housing, this health crisis we are living through has been decisive for moderating prices regarding property in Spain. In that article we spoke about a fall in prices regarding not only new housing but also second hand property. As for renting, the irruption of this pandemic has had a great influence because it has caused a decrease in tourism, making it nearly nonexistant, and this has led to the drop of renting of tourist lodgings which have had to be forced to turn into traditional rentals. At present, most owners of tourist lodgings have reoriented their businesses and, thus, the offer of traditional rental has multiplied bringing about a drop in renting prices.

A NEW REALITY FOR RENTING

In order to get an idea about how residential rental has changed in Spain after the irruption of the coronavirus, we only have to take a walk along the centre of a great city. It is really amazing to stroll along the centre of Madrid and see the large numbers of signs offering flats to rent. One year ago, this would have been inconceivable, because as we have already said, there were hardly any flats available for rent in the centre of Madrid. If we take into account this situation, it does not seem strange that in Madrid and Barcelona the rental income in September has dropped between 3 and 11%  in relation to 2019. This situation in our two main cities is extrapolable throughout the country; rental prices have decreased in nearly all Spain, except in Zaragoza and Valencia. Therefore we can say, without any fear of being wrong, that the coronavirus has imposed a new reality regarding Spanish traditional rental. If we take a look at the monthly variation rate of rental prices we notice a fall of nearly 2%. Hence, it stands to reason that the price variation from year to year has suffered, as we have seen in Madrid and Barcelona. 

A DECREASE OF BETWEEN 15 AND 19€ PER SQUARE METRE

According to the main Spanish real estate companies, the drop in rental prices in Madrid and Barcelona range from 15 to 19€ per square metre. It is obvious that each different real estate portal handles its own figures and these can change. Nevertheless, they all agree that rental prices are falling and lie between the figures we have mentioned, making it a very significant decrease. If on top of this we add the possible discount on the final price that the client may be able to achieve, then the drop in prices will turn out to be even more noticeable. In order to get an idea of the importance of this drop, we must go back to 2013 to find such decreases in rental prices.