Property experts Fotocasa have published a report on the rental situation in Spain for 2013. They have calculated that the amount of money owners can charge to rent out their property has dropped in 96% of Spanish municipalities. In fact, rental prices have only increased in 7 municipalities and remained the same in two when compared to 2012’s prices.

The national average for rental prices fell by 5.2% in 2013 and sits at 6.90 euro/sq m, dropping from 7.28 euro/sq m over the last twelve months. This is the sixth consecutive year that is has become cheaper to rent a property than the previous year.

Rentals have fallen each year since 2008:

  • 7% in 2008
  • 4.8% in 2009
  • 5.8% in 2010
  • 6% in 2011
  • 3.8% in 2012
  • 5.2% in 2013

In actual fact, property rentals have not increased on an annual basis since February 2008.

Rentals fell in every single region in 2013 with notable examples in La Rioja (-9.2%), Murcia (-8%), Basque Country (-6.9%) and Castilla-La Mancha (-6.7%).

Rentals fell the least in the following regions: Balearic Islands (-3.5%), Canary Islands (-3.7%), Extremadura (-3.8%) and Castilla and León (-4.1%).

At the close of 2013, only 3 regions had rentals above the national average: Cataluña (21% higher), Madrid (31% higher) and the Basque Country (37% higher).

Nevertheless, rental prices vary enormously from region to region, with owners in some cities charging way about the national average to rent out their property.

Most expensive

The 10 most expensive cities to rent in Spain are concentrated in just 4 provinces (Barcelona, Madrid, Vizcaya and Guipúzcoa) and 3 regions (Cataluña, Madrid and the Basque Country).

Barcelona is now the most expensive city in which to rent, knocking San Sebastián off the top spot.

The most expensive cities in which to rent a property are:

  • Barcelona: 10,55 euro/sq m
  • San Sebastián: 10,51 euro/sq m
  • Madrid: 10,30 euro/sq m
  • Bilbao: 10,00 euro/sq m
  • Vitoria-Gasteiz: 7,78 euro/sq m

Cheapest

Province capitals with fewer than 100,000 inhabitants are the cities with the cheapest rental prices.

  • Lugo (Galcia): 4,28 euro/sq m
  • Ourense (Galicia): 4.47 euro/sq m
  • Castellón de la Plana (Valencia Region): 4,74 euro/sq m
  • Cáceres (Extremadura): 4,80 euro/sq m
  • Ávila (Castilla y León): 4,83 euro/sq m

Greatest declines

The largest reductions in rental prices for province capitals were registered in the following:

  • Vitoria (Álava): -10,3%
  • Logroño (La Rioja): -9.7%
  • Bilbao (Vizcaya): -8.5%
  • Cádiz (Cádiz): -8.1%
  • Guadalajara (Guadalajara): -8.1%

Smallest declines

Rental prices dropped the least in the following provinces:

  • Zamora (Zamora): -0.5%
  • Cáceres (Cáceres): -2.3%
  • Salamanca (Salamanca): -2.7%
  • Ciudad Real (Ciudad Real): -3.1%
  • Sevilla (Sevilla): -3.2%

Fotocasa forecast that rentals in Spain will continue to fall in 2014 but at a moderate rate.

– See more at: http://www.onthepulse.es/property/wheres-cheap-and-wheres-not-rent#sthash.D9MtSAJ0.dpuf