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Rent is more than 30% more expensive in five cities: why will it continue to rise in 2023?

The national price average rose 7.4%, with strong increases in Mediterranean municipalities with a large tourist weight. 17 capitals rose above 10%, including Barcelona, ​​with 16.2%, and Madrid, with 12.5%.

The consequences of the hyperactive 2022 in the rental market are palpable in many details, such as the shortage of supply or the short time that ads for homes that are offered survive, but the one that has a more direct impact on the market. day by day of homes, due to its impact on the pocket, is the increase in the price of the square meter. In that period, the national average rose 7.4% to stand at 11.03 euros, according to data from the real estate portal Fotocasa, which confirms that it is the third year with the highest rise since 2007. To see the true dimension of the evolution of prices, it is convenient to transfer it to a specific case: To be able to rent a 75 square meter home a year ago you had to pay 770 euros per month; now, the disbursement reaches 827that is, 684 euros more per year.

But there are cases in which the increases are especially noteworthy: there are five municipalities in Spain that exceed the value of a year ago by more than 30%. They are Estepona (35.3%), Benidorm (34.7%), Mijas (33.9%), Santa Pola (33.2%) and Malaga (31.1%). The pattern in these cities is recognizable and, in fact, it is the same for the ten municipalities that have become more expensive since December 2021. All on the shores of the Mediterranean and all with a powerful tourism industry.. In them, the tension between high demand and low supply is greater than in the others, due to the resurgence of tourist housing. With the pandemic, many of these properties returned to the traditional rental market, but with tourism returning to normal, which will complete its recovery this year, all these homes have returned at great speed. The loss of rental housing stock, a common problem in most Spanish cities, is more pronounced in tourist cities. Hence, most of the cities where rent is more expensive are also tourist destinations: Barcelona tops this list, with 19.55 euros per square meter; Calvi, with 19.27; San Sebastian, with 18.16 and Ibiza, with 18.13.

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It is also noticeable how the pressure on rental prices is greater in the capitals than in the rest of the municipalities. Ace, up to 17 capitals rose more than 10% over the previous year. Of course, the aforementioned Malaga heads the list and is followed by Alicante (27.5%), Palma de Mallorca (22.9%), Valencia (21.3%) and Santa Cruz de Tenerife (17.8%). On the contrary, there is negative growth, but they are very specific cases: they are, specifically, León, 3.9% cheaper than a year ago; and Palencia, 1.5% more. Once again, in the capitals it is true that the highest increases are in tourist cities and the lowest in inland ones, except in the case of Vila, which with its increase of 15.1% was the seventh most expensive.

Despite the fact that the economic situation points to a worsening, with consequences in a job market whose good work is essential for real estate, it seems that this 2023 will also be up. “We consider that The economic context and the change in the mortgage cycle will put more pressure on the scarce rental offerso it is likely that we will continue setting price maximums in 2023″, predicts in this regard Mara Matos, director of Studies and spokesperson for Fotocasa.

Third largest increase since 2007

The evolution of the rental price since 2007 has been full of curves, braking and acceleration. Now, we are in one of the latter, since 2022 was the year with the third best rise since then. It should be noted, however, that the two years with the highest price increases were 2017 and 2018, when prices were still far from record highs and had a long way to go, the opposite of last year, when the price reached its record in several big cities. “All the autonomous communities, with the exception of Aragón and Castilla-La Mancha, have presented the highest rental prices during the past year”, points out the Director of Studies at Fotocasa. There are several reasons that explain these increases and they have to do with supply and demand, but also with the purchase market: “The fury of the sale, the revival of tourist leasing and the rent limitation measures have led to the “supply is further reduced. Compared to the previous year, the ‘stock’ has contracted by 32%, causing the imbalance between supply and demand to increase and push the price up,” says Matos.

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