Housing for rent has largely vanished in recent months in both Catalonia and the Community of Madrid. The supply of flats for rent has plummeted since the Housing Law came into force five months ago by 35.32% in the case of the Madrid region and by 34.92% in the case of Catalonia, according to an analysis carried out by the National Federation of Real Estate Associations (FAI), which puts the average fall at a national level at 30.57%.
However, the biggest fall has not been recorded in these two markets, which are the most important in Spain, but in the Canary Islands, where it has plummeted by 39.68%. It has also fallen above the average in the Balearic Islands -33.92%- and the Valencian Community -31.1%-. Although these are three eminently tourist regions, the transfer of properties from regular to holiday rentals is not the only reason for their collapse, according to FAI.
The study, based on a consultation carried out by the association with 637 estate agents in all the autonomous communities, states that there is “a high imbalance in the rental market”, given that the demand for long-term rental properties in five months has increased by 11.01% and rental prices have risen by an average of 9.2% in the last twelve months, driven in part by the shortage of supply.