Bad news for the rental industry and for people who want to rent rather than buy. The increase in rental prices lately in the main cities of Spain, are setting off the alarms for a new real estate bubble. If you want to know more, in this article we highlight everything you need to know about this subject.
A bubble affecting rentals
This property bubble affects both home and room rentals. Sharing a flat is very common, especially among young people. Barcelona, is ranked as the city with the most expensive rooms in Spain, as it is requested 429 euros per month on average. Next, we find Madrid, with an average of 403 euros, Palma in third place with 402 euros and San Sebastian in fourth place with 390 euros.
This year, the cost of renting a room in a shared flat has risen by up to 7% to an average of 331 euros per month, according to various studies. While the demand for rooms increases daily, the supply has decreased by 3.3% in the same time.
The increase in percentages
In Barcelona, flat rentals have fallen by 3.4% in the last year, but room rent has increased by 0.7%. In Madrid, the increase has been 6.9%, while complete homes have become more expensive by 10.3% year-on-year. On the other hand, prices have fallen in two places: Lleida, with a fall of 1% and on the other hand, Logroño, with a fall of 0.9%. Finally, it is important to point out that Zamora has been nominated as the most economical city. We will have to wait until the end of the year to see how the situation progresses and whether it improves or worsens.