Rents up 8.4% in 2022 in Spain

The limits on rental priceson renting could have the effect of reducing supply

Bankinter | According to data from the Internet real estate portal Idealista, rental prices rose a little more than 8.4% in December compared to the same month in 2021. This compares to an increase of 7.3% year-on-year in November. On a month-on-month basis, it was up 1.1% in December.

Analysis team’s view: The increase in rental prices is in line with the CPI we estimate for 2022 (8.4% on average), although it should be noted that it only refers to new leases. Revisions of existing leases are limited to 2%. This is in fact part of the reason for the increase. Landlords try to stay ahead by raising prices from the beginning of the contract to forestall the impact of a subsequent freeze. Another support for rental prices in the coming months will be the increase in demand, given the greater difficulties in accessing home purchases due to higher financing costs and a lower rate of household savings.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.