Rents Rising in Spain
Residential rental prices are rising in most Spanish cities with the growth led by Barcelona, Madrid and Palma de Mallorca but some areas are seeing rents fall.
Average rents in Barcelona have now increased from €892 a month in 2012 to €1,478, a rise of 65.7% while in Palma de Mallorca they are up 40% from €700 a month to €986 over the same time period.
While in the capital city of Madrid rental prices have not risen as much but are still up 20% from €1,048 per month in 2012 to €1,256 a month now.
Areas that have seen rents fall are led by Santander, the capital of the northern region of Cantabria, where prices have dropped by 3% in the last five years to an average of €649 a month.
According to Mark Stucklin of Spanish Property Insight the growth of rents in many Spanish cities is partly due to a shortage of homes to rent but in the cases of Palma and Barcelona, tourist rental demand is one of the big factors driving up prices for locals.