Expats renting a private home in Spain have seen rents soar – but they will keep on rising, says a minister.
Expats are paying record rents for their homes in Catalonia and the Balearics, but other regions where prices are lagging now are due to catch up.
Inigo de la Serna, Minister of Public Works, argues rents are not too high.
“This is not true,” he said. “Rents were higher in 2007.”
A Property and Land Report for the third quarter of 2017 shows average rents in Spain are 8 euros a square metre, while the peak price was 9.6 euros a square metre a month in September 2007, before the Spanish housing market collapsed following the global financial crisis.
The exceptions are Catalonia and the Balearics.
Cheapest and most expensive rents
Catalonia, which surrounds the city of Barcelona, is the most expensive Spanish region, with rents averaging 12.30 euros a square metre – a little higher than the previous record of 12.10 euros posted in 2007.
Rents have increased by more than 17% in the past 12 months and are the highest in the country.
In the Balearics – which include the popular sunshine holiday destinations of Majorca, Mallorca and Ibiza – average rents are 9.7 euros a square metre, again just over the previous 2007 peak of 9.6 euros. Rents have climbed by 9.6% so far in 2017.
The cheapest rents in Spain are in Castilla La Mancha (5 euros); Rioja (5.4 euros); Galicia (5.6 euros) and Murcia (5.7 euros).
House prices still recovering
House prices are expected to continue their recovery next year.
Values have risen by 6.1% in 2017, but remain at 27% below the peak prices last seen in 2007.
The forecast comes from property managers and consultants Anticipa.
The firm says prices are set to keep rising, but rents property prices could be impacted by the independence movement in Catalonia, says the firm, as foreign investors are faced with uncertainty over the future of the region.
Some property companies trading in Catalonia have seen share prices fall since the independence crisis. Merlin Properties fell by 5.3%, while Colonial dropped 6.4%.
Investors and second home owners in many regions also face tougher local regulation of renting out holiday lets.