Rent rises 7% in Andalusia and skyrockets in areas like the Costa del Sol

Access to purchase housing has been complicated in recent years in Andalusia, especially for the tightest economies. The real estate market continues with a growth trend, gradually approaching the figures it registered before the economic crisis, and prices do not seem to stop growing.

While the sale price is experiencing moderate growth, the cost of rent is rising a lot, especially in the provincial capitals and coastal areas with bank obstacles of access to obtain a mortgage with an increase in interest in recent years with a boom in tourist housing in Andalusia.

The owners obtain greater profitability by renting their houses to tourists and the properties are thus removed from the stock of rental houses. Demand rose and supply fell, which, according to industry experts, is the main cause of the increase in rental prices, especially in recent months.

According to data from the Idealista real estate portal, during the past 2019 the price of rental housing rose on average in Andalusia by 7%, to stand at 8.5 euros per square meter. The cost of leasing, or profitability depending on how you look at it, increased across the board in all provinces. Seville was the one that registered the greatest increase with 8.2%, then Huelva (7.6%), Almería (6.8%), Cádiz (5.3%), Jaén (4.8%), Malaga (4.4%), Córdoba (3.1%) and Granada (0.6%).

Malaga, with an average of 9.7 euros per month, continues to be the province with the most expensive rent in Andalusia. Marbella is the municipality in Malaga where renting a house is most expensive, with an average that almost reaches 11 euros per square meter, followed by the capital with 10.4 euros and other municipalities on the Costa del Sol such as Torremolinos (10.6 /m2), Benahavís (10.0 /m2), Estepona (9.4 /m2), Benalmádena (9.4 /m2) or (Nerja 9.1 /m2).

The Costa del Sol is where the real estate market in all of Andalusia is growing the most, new high-end developments and rescues of projects that were halted by the crisis make up the scenario for the sector in this region, where renting an average two-bedroom home can exceed even 800 euros per month in some areas.

Although, the town in Malaga where the rent has grown the most is Cártama, which after registering a year-on-year increase of 30.7% now shows a price of 8.1 euros per square meter. Its proximity to the capital, from which it is only separated by about 17 kilometers and with the Technological Park that can be reached by car in just over 10 minutes, have turned this town in the Valle del Guadalorce into a commuter town, increasing by both the price of housing, especially for rent.

Iin Malaga the price does not stop growing and consolidates its position as the most expensive province, Jaén is established at the opposite extreme with the lowest costs in the region, 4.5 euros per square meter, less than half of what which is paid in some Malaga municipalities.

In the case of Seville, the province where the price has increased the most, the behavior is very uneven if the capital is compared with the rest of the municipality, since all are below the regional average.

In the province of Cádiz, another of the great squares of tourist housing, the price remains below the average in most municipalities, although it has also skyrocketed in recent months with figures close to those of Malaga in the points more touristy such as Zahara de los Atunes (10.8 /m2) or Tarifa (9.6 /m2).

As it happens with the provinces, all the capitals set prices higher than those of a year ago. The greatest increase was in Huelva (9.2%), followed by Almería (8.5%), Jaén (6.3%), Seville (6%), Málaga (5.9%), Cádiz (5, 1%), Granada (1.8%) and Cordoba (0.4%).

Seville continues to be the Andalusian capital where it is most expensive to rent a home, with 10.5 euros/m2, followed closely by Malaga with 10.4 euros/m2. In third place is Cádiz, with 8.9 euros/m2. On the other hand, Jaén (5.7 euros/m2), Almería (6.5 euros/m2) and Huelva (6.7 euros/m2) are the cheapest capitals in Andalusia. In Córdoba they are located at 7 euros/m2 and in Granada at 7.8 euros/m2.

In Spain as a whole, the price of rental housing has grown less than in Andalusia, specifically, by 4.8%, leaving the average cost per square meter at 10.9 euros per month.

During the past year, all the communities increased their prices, with Navarra being the region with the highest increase (10.6%) in the last twelve months. 

They are followed by Aragon (9.1%) and La Rioja (8.7%), while the most modest increases have occurred in the Balearic Islands (2%), the Canary Islands (3.3%), and Madrid (3.6%). , Cantabria (4.3%) and Catalonia (4.4%).

Property Management, Property Rental, Andalusia, Costa del Sol Rent, Holiday Rental

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