July 30, 2021

The rental price starts to brake

The rental price starts to brake

When the debate is focused on whether the measures proposed by PSOE and Podemos to stop the escalation of rental prices, such as building 20,000 homes for social leases or enabling municipalities to limit prices, will be effective, it turns out that maybe the problem in question is heading the way of the solution. The price of rental housing fell by 1.3% in all of Spain in the third quarter of the year, leaving the square meter at 10.6 euros per month, according to the latest report of this idealistic real estate portal market. The study was conducted analyzing 65,142 ads that were in the database of the web last September.

Although the current price is 12.6% higher than that recorded in the same period of the previous year, the idealist studies chief, Fernando Encinar, points out that rents "have fallen by almost half of the provincial capitals and in the rest they have grown moderately. " The big problem of rent is concentrated in large cities, especially in Madrid and Barcelona, ​​which are the points where the market has overheated. In these two cities, the idealist report detects a certain exhaustion of this upward climb. "In Barcelona, ​​the spearhead of rental in Spain, prices are down 5.5% year-on-year. In Madrid, prices rose by 7.4% year-on-year, far from the double-digit increases experienced in previous quarters, "explains Encinar. The Catalan capital continues to have the highest rental price in Spain, 17.3 euros per square meter. In Madrid it is 16.4 euros. The podium is completed by San Sebastián, with 15.6 euros. On the opposite side, in Zamora the price is 4.3 euros.

For the person responsible for idealist studies, "the data confirm that, despite the widespread belief that there is a bubble in the rent, there is no such bubble. In this market, prices have risen due to a mismatch between supply and demand. " To encourage the latter and help to relax prices, Encinar considers inadequate the Government's plan to build 20,000 homes for social rent within a period of four years because "they could reach the market when the problem no longer exists. Building 20,000 public rental homes will mean the consumption of resources and time and may not have the expected result by the time the first homes start to market. "

For idealist, the political improvement to lower prices is to encourage the exit of empty homes to the rental market. "And the best way to do this is through stable and reliable regulatory, legal and fiscal frameworks that encourage the thousands of owners of these empty houses to rent them," explains Encinar, who also issues a warning against measures such as to limit price increases. "Coercive policies, we have already seen in Paris and Berlin, do not work."


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