The rental market has become an equation of devilish solution. The absence of official statistics has been a fertile field for the proliferation of theories that explain the sharp rise in income produced in recent years. One of them is the one that blames tourist floors for the "boom" of the residential sector.
The Bank of Spain, however, questions the existence of a relationship between the two phenomena. In a report published on Thursday, the supervisor questions the limits imposed by different administrations to platforms such as Airbnb because he considers that “the available evidence on the impact of vacation rental on the rental offer for first residence and real estate prices is scarce and little reliable ».
This hypothesis was already defended a year ago by the National Commission of Markets and Competition (CNMC), which also questioned the existence of a relationship between the proliferation of these apartments and the rise in the rental price. The body chaired by José María Marín QuemadaIn fact, it has appealed to the courts some of the aforementioned restrictions.
The Bank of Spain supports this thesis. And he considers that, in reality, the increase in rental prices (which rebounded 50% in the last five years) is due to the fact that supply does not grow at the same rate as demand, which has been driven by the current conditions of the working market. “In a context of economic recovery in which the income of the work of households with lower income is limited by the high incidence of temporality, the partiality of the workdays and the still high unemployment rate, there would have been an increase in the demand, concentrated in certain markets, compared to a relatively rigid residential rental offer in the short term ”, highlights the supervisor.
This stagnation of the offer is explained, in part, by the collapse of the housing of official protection. "Since 2013, there has also been a significant drop in the number of new officially protected homes," notes the Bank of Spain, which explains that these properties are "a priori a substitute for rent in the private market for lower income households."
As a result, More and more Spaniards live on rent. What pushes prices up. The Survey of Living Conditions (ECV) of the INE shows a gradual increase in the weight of residential rental, from 19.4% in 2005 to 23.9% in 2018. A trend that is especially pronounced in regions such as the Balearic Islands (28 , 3% for rent) Catalonia (26.3%) Madrid (23.6%) and Canary Islands (19.5%).
The supervisor, who regrets the absence of official figures in this market, also analyzes the profitability of the rental. And, as ABC published, this asset has lost appeal in recent years because of its higher cost. "However, since 2017 the gross profitability of the rent would be reducing in these cities, and currently reaches the levels of 2014," explains the Bank of Spain, which also drops that it would have been appropriate to launch tax incentives aimed at Increase rental profitability.
The supervisor, in fact, ensures that there is a "fiscal bias" in favor of home ownership as a result of the budgetary consolidation measures applied during the crisis. «In relation to taxation on residential rental, although the increases in IBI increase cost for landlords, reducing the net profitability if said cost is not transferred to the price, tax incentives for business investment in the rental market, such as, for example, the special regime of real estate investment companies (socimi), favor profitability for this type of agents ”, explains the Bank of Spain.
. (tagsToTranslate) bank (t) spain (t) rent