Intermoney| According to the report published by the real estate portal Idealista, rental prices in Spain set another all-time high in July, reaching 11.9 euros per m2 per month. During the last quarter, prices have increased by +3.7%, accumulating a growth of more than 9% in the last 12 months. Within the capital cities, not only Madrid and Barcelona, but also Málaga and Valencia are at their highest levels since records began. In the last quarter, Cantabria (+5.5%) has increased the most, while in Navarra and Extremadura prices have remained stable.
Assessment: We believe that one of the driving forces behind this growth is not so much an increase in demand, but rather a decrease in supply due to the new legislation. This has not exactly helped to improve the legal security of landlords, who are increasingly resorting to products such as rental insurance, which de facto pass on the burden to tenants. The way to contain rents would therefore be to give landlords greater certainty of collection.
