The Spanish real estate market relives a new period of expansion. The sale of housing has grown by more than 30% in the last five years and rental prices have begun to envision the possibility of a new bubble. The inequality between supply and demand has caused prices to skyrocket, rising in many cases above their real value. In addition, the contraction of the offer by individuals and the increase in rental housing held by real estate funds is changing the nature of the sector.
Limited offer and high prices, a cocktail that has caused that there are currently up to eight applicants for each offer of rental housing, according to a study by the Negotiating Rental Agency (ANA), which warns that approximately 70% of potential tenants are rejected due to solvency or work instability problems.
According to the latest Eurostat barometer, 23.9% of the Spanish population lived on a rental basis in 2018, compared to 19.45% in 2005, 4.45% less. For ANA, the offers with better quality-price conditions are rented in just two days, they tend to remain longer leased and the owners make better their rents.The report believes the significant increase in the demand for rent that occurs in September is very relevant - with increases of over 30% due to the increase in the number of students in search of flats-, which contrasts with the "scarce" supply of housing that exists for rent.
The evolution of housing rental is not linear since factors such as seasonality, supply capacity and increased demand influence. “The upward curve of the rents of houses begins to grow from the spring reaching its maximum splendor just after the summer, to go down progressively from the month of November, reaching the minimum demand quotas in the months of December , January and February, ”says the report. At present, a tenant needs at least 20 days to find an apartment, spending almost two hours visiting homes, according to data from several real estate portals.
The difference in prices and opportunities is absolutely different according to each province. According to the Eurostat study, the communities with the most offer and where it is most expensive to rent are the Balearic Islands (28.3%), Catalonia (26.3%), Madrid (23.6%) and the Canary Islands (19.5%). The greatest demand is associated with large populations or with a large tourist activity such as Malaga, Palma de Mallorca, Las Palmas de Gran Canaria, San Sebastián or Santa Cruz de Tenerife. On the other hand, the interior Spain -Extremadura, Castilla-La Mancha or Navarra- lives a different situation with a decrease in the demand for rent.
The exponential increase in the rental price led to the last Council of Ministers of the previous legislature approving a royal decree law on the reform of the sector, which included measures such as the increase in the duration of contracts, that the annual income is anchored to the CPI or the creation of a housing price index
. (tagsToTranslate) javier de antonio