The price of house rent in Spain rose by 8.9% in 2017

The price of house rent in Spain rose by 8.9% in 2017

Proof of this is that the price increases in most the autonomous communities, which fell by -1.7% and -0.3%, respectively, according to the end of the year analysis that is elaborated annually by the real estate portal fotocasa in the report "Rental housing in the year 2017".

The annual variation recorded at the end of 2017 is 8.9%, the most pronounced increase in the historical of fotocasa’ Index, which dates back to January 2006. In this way, for the third consecutive year, the price of rental housing in Spain leaves behind seven years of continuous drops and registers a new annual increase in the rental price. Thus, the 2015 report closed with an increase in the price of rental housing of 3.6% and the report of 2016 did it with an increase of 6.7%.

"There are several reasons that explain the continuous and strong increase in rental prices. The first is that, despite the consolidation of mortgage financing and economic recovery, many Spanish people cannot access the purchase market due to the loss of purchasing power and the greater demands of financial institutions when it comes to grant a credit. Their only option is to rent, especially for young people," explains Beatriz Toribio, director of studies at fotocasa.

"But also the interest of investors in the purchase of housing to put it on rent due to the high returns offered by this market in a context of low interest rates, tourism renting boom and change of mentality in favor of this way of life, push prices upwards," adds Toribio.

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