From the Balearic Islands to Teruel: 809 euros difference between the most expensive and cheapest rental in Spain

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The coronavirus pandemic has changed the rhythm of the rental market in Spain and has suddenly halted the upward trend in prices. The increases are more and more localized and in the big cities, the most stressed so far, the rents have turned around.

In the general calculation, rental prices fell 7.46% on average in the year of the coronavirus, up to 819 euros that marked in January 2021, 66 less than in the same month of the previous year.

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The data are the result of the balance prepared by the company Rent Insurance based on a provincial income study and its conclusions reflect the downward impact that Covid-19 has had in recent months. The strongest declines according to Study on the average rental price of homes. Spain 2021 they registered in Painting (-10.43%), followed by Sevilla (-9,66%), Barcelona (-9.39%) and Alicante (-9%). Only Granada (+ 0.33%) and Cantabria (+ 0.32%) saw their rents rise between January 2020 and January 2021.

“Covid-19 has produced a change in trend in our economy. Rent cannot be on the sidelines and is being directly affected by the situation. From the supply point of view, it is experiencing a significant increase mainly caused by due to the release of houses on the market that were previously used for other uses; from the point of view of demand, there are intense changes in the quality of the same “, he points out Antonio Carroza, CEO of the firm.

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From the point of view of prices, the coronavirus has marked a halt in the increases and in provinces such as Madrid or Barcelona, where the pressure on prices has been highest in recent years, declines are already around 9%. Despite this, average incomes are still very high in both, only surpassed by the Balearic Islands.

The highest average price of a rented home is found on these islands, with 1,164 euros, 5.21% less than what was paid 12 months ago. They are followed by Barcelona, ​​with 1,138 euros and a decrease of 9.39% and Madrid, with 1,096 euros and a drop of 8.59%. At the opposite end of the scale, the cheapest average rents are found in Teruel, for 355 euros; in Jaà © n, for 382 euros and in Ciudad Real, where a tenant rents on average for 395 euros. The difference between the most expensive province and the cheapest is 809 euros.

Negotiations for the Housing Law

The drops, however, coincide with a key moment in the negotiation of the future Housing Law that the Government plans. One of the points of divergence between the coalition partners, PSOE and United We Can, is precisely the one that has to do with setting limits on rental prices. The training led by Pablo Iglesias insists on intervening directly on them and penalizing homeowners who do not provide their homes on the market, however, the socialist party rejects this option more and more openly and is committed to establishing tax and other incentives to favor the supply.

The differences between the two have reached such a point that the negotiations could blow up just when the law should already be on the way to the Congress of Deputies.

The real estate sector, for its part, continues to press so that it does not finally include these limitations. Landlords, especially large landowners, have repeatedly warned that capped rents would have the opposite effect to that desired, that it discourages investment and that, far from encouraging supply, it would retract it with the consequent rise in prices.

“We are immersed in an unprecedented crisis, with destruction of the business fabric, restrictive measures that affect activity and thousands of people in ERTE. Family income has been negatively affected and we cannot forget that this is what establishes the true ceiling at rental prices, “says Carroza.

Big differences

However, the reality in some provinces and in many cities is that the rental effort in Spain exceeds 30% of family income, which, at most, is recommended by the European authorities, which makes it difficult for people to access housing. many people.

Even in this there are differences, because prices vary a lot depending on the number of rooms in the property and the province where it is located.

The most expensive properties, according to the number of bedrooms and the place where they are located are those with four rooms located in Guipúzcoa, where this type of housing reaches an average price of 1.552 euros. It is followed by houses with the same number of bedrooms in Madrid, with average monthly income of 1,437 euros. Precisely in Madrid, there are also the most expensive 3-bedroom homes, where average prices are 1,214 euros, and those with 2 bedrooms (1,014 euros). The most expensive one-bedroom homes are found for an average price of 909 euros in Guipúzcoa.

The lowest recorded average price is for a 1-bedroom home in Teruel, where you can find this type of property by 299 euros. For little more money, you can find a house with the same characteristics in Ciudad Real and Cuenca, where a 1-bedroom apartment costs on average 306 euros.

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