The cost of renting a property in Spain has fallen by an average of 239 Euros since the peak of 2007, according to analysis by property portal Fotocasa.
Pre-crisis the average cost of a rental property in Spain with an area of 80m² was 810 Euros, or 10.12 Euros per m². In February 2016 the average price had fallen to 571 Euros, representing a 29.6% fall over the last nine years.
Beatriz Toribio, responsible for fotocasa studies, said “Renting a home today is almost 30% cheaper than in 2007, but in the last two years we have seen rental prices have begun to recover due to growing interest and increased demand since the crisis erupted. This explains why owners are increasingly reluctant to lower prices and closed 2015 with the highest increase (3.6%) in the history of fotocasa’s real estate index.”
The autonomous community that registered the largest fall in rental costs was Aragón where rental prices have fallen an average of 349 Euros over the last eight years. Prices in the community peaked in June 2008 at 10.85 p/m², or 868 Euros per month for a property of 80m². The fall is 40.3% with the same example property now costing only 519 Euros per month.
Conversely, Castilla and Leon has seen the slightest fall in prices over recent years. The average reduction in Castilla and Leon is 81 Euros since its peak in May 2008 when an 80m² property would cost 532 Euros to rent. In february this year the cost stood at 451 Euros.
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During February this year the most expensive part of Spain to rent a property was the Basque Country where the average rent is 813 Euros. Here, prices have fallen by 13.5% since the peak, an equivalent value of 127 Euros.
The cheapest place to rent a property is Extremadura where the average cost to rent an 80m² property is 358 Euros. This area saw its peak in June 2008 when the average price was 443 Euros. February’s costs represent a reduction of 85 Euros, or 19.2%.
When looking at the rental prices across the country’s provinces, Huelva recorded the largest fall. Prices in the province have fallen considerably since their peak in May 2007. Back then, a rental property would have an average monthly rental cost of 851 Euros. By February this year this cost had fallen a massive 43.9% to only 478 Euros per month for an 80m² property.
The lowest fall by province was recorded in Palencia. Here, property rental costs, while still cheaper than they used to be, have only fallen by an average of 38 Euros over the last nine years. Renting a property in Palencia in February 2016 would have set you back an average of 438 Euros, 7.9% lower than prices in 2007 when the average stood at 475 Euros.