# Rents Going Down in Spain?



## conildlf (Jun 13, 2020)

I have been monitoring rent prices in Spain in a number of areas since last March.

It seems that rents have been going down significantly. Are others seeing this also?

Or is this just a function of the time of year ie December when rents are cyclically lower because its winter?


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## Joppa (Sep 7, 2009)

It is to do with supply and demand. Because of the pandemic, many holiday apartments have remained empty and landlords, instead of nil income, have in many instances decided to offer for long-term rentals, and there is now an oversupply and rents have been falling. In cities, since the lockdowns apartment dwellers have been looking for more outside space or homes in the suburbs, thereby putting downward pressure on rents of places that are empty. Winter rentals have always been (much) cheaper than the summer peak, but lower rents are now appearing in many long-term rentals.


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## Jenny Jitterbug (Aug 26, 2020)

Covid 19 has slowed down commercial market activity mainly due to the restriction of movement of people. It has not helped the property rental market with lockdowns and airlines cancelling all flights in and out of Spain.
Rentals prices are seasonal and prices do drop in winter when it is much cooler, too cold to swim in the sea and most swimming pools are closed.


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## xabiaxica (Jun 23, 2009)

Jenny Jitterbug said:


> Covid 19 has slowed down commercial market activity mainly due to the restriction of movement of people. It has not helped the property rental market with lockdowns and airlines cancelling all flights in and out of Spain.
> Rentals prices are seasonal and prices do drop in winter when it is much cooler, too cold to swim in the sea and most swimming pools are closed.


All of those would affect holiday rental prices. 

Where I live, long term rental prices are stable, with some landlords increasing rents.


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## conildlf (Jun 13, 2020)

xabiaxica said:


> All of those would affect holiday rental prices.
> 
> Where I live, long term rental prices are stable, with some landlords increasing rents.


Interesting. 

I am using Idealista as a gauge and using a number of cities for my research, Canary Islands, Barcelona, Marbella, San Sebastian, other Basque towns, Cantabria beach towns and Costa la Luz.

The amount of Long Term of sub 1000 euros places per month seems to really been increasing.

Even the amount of sub 600 places per month seems to vastly increased, even where some did not really exist.


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## Jenny Jitterbug (Aug 26, 2020)

xabiaxica said:


> All of those would affect holiday rental prices.
> 
> Where I live, long term rental prices are stable, with some landlords increasing rents.


I forgot to mention where long term tenants are in lockdown the landlord has them trapped and may increase the rent.


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## xabiaxica (Jun 23, 2009)

Jenny Jitterbug said:


> I forgot to mention where long term tenants are in lockdown the landlord has them trapped and may increase the rent.


Nobody is trapped. It's possible to move even during lockdown.

Landlords aren't permitted to increase the rent on a whim, either.


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## NickZ (Jun 26, 2009)

conildlf said:


> Interesting.
> 
> I am using Idealista as a gauge and using a number of cities for my research, Canary Islands, Barcelona, Marbella, San Sebastian, other Basque towns, Cantabria beach towns and Costa la Luz.
> 
> ...



Many (maybe all) are heavily touristy. I don't know which part of Barcelona you're looking at but for years the tourist centre has been pricing people out of the market.

The Canary islands have a general shortage of housing. You'll often see complaints about workers not being able to find or afford apartments. Plenty of hotels and villas but not much in the way of apartments for workers.

It's not surprising rents are falling in those areas. I've seen the same thing but they're obviously tourist apartments that have been pulled off the short term rental market. You are seeing the same fall in sale asking prices.


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## conildlf (Jun 13, 2020)

NickZ said:


> It's not surprising rents are falling in those areas. I've seen the same thing but they're obviously tourist apartments that have been pulled off the short term rental market. You are seeing the same fall in sale asking prices.


Looking at Barceloneta.

Yes, I noticed sale asking prices dropping as well since March.


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## xicoalc (Apr 20, 2010)

xabiaxica said:


> Nobody is trapped. It's possible to move even during lockdown.
> 
> Landlords aren't permitted to increase the rent on a whim, either.


Correct, I bought a house in January and moved in April, right in the middle of Lockdown. Checled with the local police first and they gave us the OK to do the move. Regarding tennants, in actual fact, those who are tenants and who have been affected by an ERTE or ERE during the estado de alarma have (or had, I presume it remains valid) protection if they are struggling financially in terms of their rent.


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## tebo53 (Sep 18, 2014)

Jenny Jitterbug said:


> I forgot to mention where long term tenants are in lockdown the landlord has them trapped and may increase the rent.


Landlords can only increase the rent as much as inflation unless there has been improvements made to the property. My rent has been exactly the same price for the last 6 years!

Steve


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## xicoalc (Apr 20, 2010)

tebo53 said:


> Landlords can only increase the rent as much as inflation unless there has been improvements made to the property. My rent has been exactly the same price for the last 6 years!
> 
> Steve


When I was in my last house (which was rented), I was there over 10 years and it was the same... never went up. He tried once or twice but when I said "in that case I will think about leaving", he changed his mind because, as he said, a good tenant that keeps house good and pays on time each month is hard to find. 

But yes, the idea that they can simply bump up rents more than inflation is not true and even if a landlord tried, the tenant simply needs to keep up the normal rent payments and the nice judge will always favour he tenant


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