Residential communities are a safe haven of profitability for rental property investors.
The aggregate price of rental housing in Spain increased by 41% over the past five years and advanced by 32% over a decade. Meanwhile, in Canary Islands, Valencia, La Rioja and Navarra, the growth came in at 49%, 46%, 43% and 42%, respectively.
Since 2016, the average price per square meter of rental housing increased by 41% in Spain (from 7.40 euros per square meter in June 2016 to 10.44 euros per square meter in June 2021). In 2016, Spanish tenants had to pay an average of 592 euros per month for renting a 80-square-meter property, while in 2021 the average monthly rent is 835 euros.
Santa Cruz de Tenerife had the fastest pace of rental rates growth compared to other cities. It is the only Spanish city with a 60% increase in the number of new rental homes in June 2021 compared to June 2016.
To rent an 80-square-meter property in San Cristobal de la Laguna one needed to pay monthly 426 euros in June 2016 (5.33 euros per square meter), while in June 2021 the rental rate rose to 689 euros (8.61 per square meter).
Below are Spain’s top cities with the highest pace of rental prices growth over the past 5 years:
- San Cristobal de la Laguna - 62%
- Mijas - 49%
- Torremolinos - 47%
- Capital of Murcia - 45%
- Logroño - 44%
- Capital Santa Cruz de Tenerife - 42%
- Terrace - 42%
- Manresa - 41%
- Vigo - 41%
- Fuenlabrada - 40%
Regions with growth below average
Regions with growth below average
This is the case in the Balearic Islands, where rental prices increased by only 11% over the past five years.
It is followed by Extremadura with 23% growth and a 26% increase in Asturias and the Basque Country.
Aragon is at the bottom of the rating with a 29% rise in rents over the past five years.