Double-digit growth in most major cities, as one in two tenants say they rent because they can’t buy
The escalation of the Euribor and the resulting increase in mortgage costs make buying a home more difficult, but at the same time renting has also become an increasingly difficult option given the ever-increasing prices and the ever-decreasing supply of available flats. To the point that they have increased by 8.4% throughout the year, increasing the cost per square meter to 11.4 euros, a figure 2% higher than that of the previous quarter, according to the data released by this were released Thursday through the Idealista real estate portal.
But not only that, in most major Spanish cities this growth is growing at double digits. For example, 48 provincial capitals have clearly higher rents than a year ago. Barcelona leads the way with an increase of 25.7%, closely followed by Alicante (23.4%), Valencia (20.9%) and Malaga (20.7%). They are followed by Gerona (19.2%), Orense (15.9%), Teruel (13.8%), Palma (11.9%), Jaén (11.4%) and Madrid (11.2%) ). The price has only fallen in three capitals: Palencia (-4%), Córdoba (-0.3%) and Zamora (-0.1%).
Behind this strong price increase is the lack of available supply and increasing demand. This is what Idealista spokesman Francisco Iñareta says. “The growing demand is accompanied by a dwindling supply that cannot be replaced,” explains Iñareta, who also warns that “the uncertainty felt by the owners in evictions and occupations and the measures taken or announced by the Government encouraging the launch of a new product, they drastically reduce the rental property stock and it is therefore likely that this upward trend will continue in 2023.
But renting is not the preferred option for half of tenants, who admit to doing so because they lack the capacity to buy their own home, according to the ‘Rental Experience in 2022’ report published on Thursday by the real estate agent. portal Fotocasa.
A further 26% of tenants admit to choosing to rent because of job mobility, while the remaining 23% prefer it because of the freedom and flexibility it offers, a lower percentage than the 26% of tenants who do so in 2021 claimed.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
