Rental Price Growth Moderates as Market Nears Peak
The average price of rental housing in the Canary Islands increased by 8.7% year-on-year in November, reaching €15.13 per square metre. The monthly figure also rose by 1.1%, according to data from the Fotocasa Real Estate Index. Regarding the annual variation in the Canaries, the data indicates it has been positive for four years, with flats now being offered for €97 more per month than a year ago.
National Trend Points to Potential Inflection
Nationally, the average rental price rose by 0.7% in November compared to the previous month and by 7.4% compared to November 2024, reaching €14.10 per square metre. “The rental price presents the most moderate increase of the year and, for the first time in seven months, leaves behind double-digit rises. This change points to a possible inflection point which, if consolidated, could offer some respite in the midst of an overpricing crisis,” emphasised the Director of Studies and spokesperson for Fotocasa, María Matos.
Regional Divergence and a Call for Stabilisation
Last month, the autonomous communities with the greatest dynamism began to slow their rate of increase, while regions with lower demand pressure continued to record growth above 10%. For Matos, this territorial difference suggests the rental market could be close to reaching its peak after three consecutive years marked by record figures. “The sector could enter a necessary phase of stabilisation, especially in a context where prices are, in many cases, unaffordable for the average tenant,” she pointed out.
Canaries Among Most Expensive Regions
The annual variation in rent in Spain has been positive for 45 months. For an 80-square-metre flat, the November data means properties are being offered for €78 more per month than a year ago. According to Fotocasa data, all autonomous communities except Madrid recorded annual increases in rental prices in November. The largest increases were in Castilla-La Mancha (+13.8%), Catalonia (+13.1%), Extremadura (+9.9%), Aragon (+9.2%), the Canary Islands (+8.7%), Murcia (+8.2%), Asturias (+7.5%), and Andalusia (+7.4%), while the most moderate were in the Basque Country (+4.5%), Cantabria (+3.7%), and Navarre (+1.3%).
Madrid Sees First Annual Fall in Over Three Years
The Community of Madrid was the only region to record a drop in rental prices, of 0.3%, marking its first annual decline after 45 consecutive months of increases. According to Fotocasa, the most expensive regions to rent a home in Spain, with prices above €15 per square metre per month, are Madrid (€20.66/m2), Catalonia (€20.25/m2), the Balearic Islands (€18.60/m2), the Basque Country (€17.50/m2), and the Canary Islands (€15.13/m2). In contrast, the most affordable are Galicia (€9.95/m2 per month), Murcia (€9.88/m2), La Rioja (€9.88/m2 per month), Castilla y León (€9.58/m2), Castilla-La Mancha (€8.42/m2), and Extremadura (€7.36/m2).
No post found!