Summer has come, and inflation has not slowed down. Holidays in 2022 will be 9.8% more expensive for those who want to rent an apartment on the coast.
According to the latest report on rental prices in popular coastal areas of Spain, published by the appraisal company Tecnitasa, a week of living in a rented property near the beach will cost 90 euros more than a year ago.
"The accumulation of savings, reinforced by the pandemic, and the fear of rising interest rates are key factors that could lead to an increase in demand in the real estate market in the first months of 2022. This led to higher prices, which also affected the lease," explains Fernando Garcia–Marcos, technical director of Tecnitasa.
On the other hand, the desire to relax in the summer of 2022 has also generated higher demand and a greater willingness to pay more for a vacation than usual.
Weekly rent of an apartment on the coast this summer will cost an average of 1,016 euros. But the amount of money that vacationers will have to spend depends on the place they choose. The difference between the cheapest and the most expensive rent exceeds 2,500 euros.
For example, a week's stay in Porto Coloma, a coastal port east of Majorca, costs 2,800 euros. This is the most expensive place to rent a property in Spain, including La Toja. The difference is that in Majorca, the average area of houses is 250 m2, and on the islands of Galicia – 80 m2.
But in such locations as Puerto de la Cruz in Santa Cruz de Tenerife and Las Canteras in Las Palmas de Gran Canaria, a weekly apartment rental will cost 280 and 300 euros, respectively.
In the summer of 2022, national and foreign demand for Spanish real estate reached record levels since the beginning of the COVID-19 pandemic. However, the rapid rise in inflation has been undermining the purchasing power of Spanish real estate for more than a year, and this may lead to lower costs.
"The price increases observed in recent years mean that families with a more limited budget have to reduce the number of days for summer holidays and look for small homes or housing away from the beach," explains Jose Maria Basanez, president of Tecnitasa.