The rental market in Spain is experiencing a time of great expansion. This reality makes investing in real estate in Spain a great decision to obtain profitability for our savings.
But let’s delve more into the current situation of the Spanish rental market. Renting a home in Spain has become a real exam where it is easy to find situations such as:
- Direct interviews looking for a tenant,
- come with the bail under your arm,
- group dynamics
- Know with data which is the best investment
- The demand to rent is very high. The difficulty in buying a home has caused thousands of people to lean towards the rental market.
This situation has caused sharp increases in rents. Therefore, this context makes investing in real estate in Spain to rent a good option. Look at the data:
Spain is currently experiencing an annual increase of 3.7% in the number of rental homes.
In five years as explained by UDA, the rent this figure will reach 25 – 30%.
Renting a flat in Spain is 15.9% more expensive today compared to a few years ago.
Madrid and Barcelona play in another real estate league
The number of houses for rent today is 24% . The forecast is that it will continue to increase.
The rental price in Barcelona has risen by 16.5% ; in Madrid 15.6% . The forecast is that it will continue to increase.
Similar results are drawn from the latest JLL study. In its report “Residential Rental Clock” it is indicated that rental income will continue to grow, especially in Madrid and Barcelona.
The main residential rental markets in Europe offer growth prospects. However, cities such as London, Berlin or Lisbon will have slow increases, while rents in central Paris, Barcelona and Madrid will suffer accelerated increases.
There is a common denominator in all European capitals that can be summarized as:
Pressure is being exerted on rental housing prices due to increased demand and there is an offer that is not capable of absolving it. For Bargain properties spain matters you need to be sure there.
There is a critical imbalance between demand and supply. A rapid demographic change is creating pressure from the population towards the large metropolitan centers. There are not enough homes to relieve that pressure, which is causing the price increases.
In a recent study by a real estate portal, 12% of rented apartments were on the market for less than 48 hours. In the case of Madrid and Barcelona, two out of ten rentals posted on the web during February were closed in less than two days.
Invest in real estate in Spain rental market housers
The resurgence of rent
The reality is that the residential rental market has become the most profitable market of any financial product.
Although there is a strong cultural roots in Spain regarding the idea that “renting is throwing money away” a change in trend is taking place. There are several factors that explain this change in trend, among which stand out:
Economic: the crisis and the credit restriction were the starting point for the increase in rent, but new ways of access to investment in real estate in Spain such as Housers encourage the growth of the rental market.