Property rental prices in Valencia are now nearly 8% lower than in May of last year, but analysts predict they will rise again
According to the most recent data published by Idealista, Spain’s biggest property website, rental rates are continuing to plummet. Rents in Spain have declined another 0.5% in the last month alone, and 1,2% during the last three months.
This may not seem like much, but the decline has been building for the past year, and if we look at the data from May of last year, we can see some significant changes. Barcelona was the biggest loser, with a 17.8 percent drop in average rental prices, followed by Madrid with a 13.4 percent drop. Palma de Mallorca (-11,6%), Seville (-9,1%), and Malaga (-8,2 % ) are also at the top of the list.
Valencia City came in sixth place with an average price drop of 7,9%, which isn’t bad considering that Valencia experienced the greatest rental price increase in Spain in recent years. On the other end of the spectrum, there are provincial capitals with rent increases, such as Melilla, which increased by 11.1%, followed by Soria (10.8%), Lleida (8.3%), and Vitoria (7,6 percent ).
Looking specifically at Valencia, Patraix (-14%) experienced the greatest decrease, followed by Poblats Maritims (-13,4%), L Eixample (-13,3%), and Extramurs (-10,1 percent ). Benicalap was the only area where rental prices increased year over year.
San Sebastian is the most expensive provincial capital to rent a property in, with an average price of €14,6 per square metre per month, followed by Madrid and Barcelona, which have nearly identical prices at €14,5 per square metre per month. Valencia is the 14th most expensive provincial capital, with an average price of €8,8 per m2, followed by Alicante at number 23 and Castellon at position 36, near the bottom of the list.
Property rental prices in Valencia were highest in Ciutat Vella, where three barrios top the list: La Seu (€11,4 m2), San Francesc (€11,2), and El Mercat (€11,2). El Pla Del Remei, the most expensive area for property purchases, is only the fourth most expensive to rent, with an average monthly rent of €10,7 per square metre. San Isidre is the cheapest area to rent in, with a price of €7,1 per square metre.
The list of decreases in autonomous communities appears to be much better, as the majority of rental price declines occurred in the provincial capital. For example, while prices in Valencia City fell by 7.9% year on year, they fell by only 3% in the Valencian Community.
Property rental prices in Valencia began to fall in May of last year, when they were at their all-time high. They are currently at the level last seen in June 2019, which is still 45 percent higher than the historical low, last seen in 2015.
However, many real estate analysts believe that once the health crisis is over, prices will gradually return to pre-crisis levels. The current rental price crisis was caused by a number of factors typical of movement restrictions, including an increase in the number of properties normally rented to students or through Airbnb, as well as significant job losses. Because property sales prices haven’t changed much during the crisis, it’s expected that once normal life returns, rentals will continue to rise.
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