# Spanish business press: rental housing trends?



## dancebert (Jun 4, 2015)

Does the business press in Spain confirm what the foreign press says about Spanish rental housing trends of the last 5 years?

In Spain, like the other countries I looked at, I wasn't surprised to read that demand for rental housing has increased since beginning to recover from the global economic shock in 2008. Increased demand meant higher prices and, obviously, lower supply as new construction or conversion hasn't kept up with demand. It's the same in the US. One Spanish real estate investment firm said Spain has 2 million rental units (no idea how they define 'unit') and needs another 1 million.


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## jojo (Sep 20, 2007)

dancebert said:


> Does the business press in Spain confirm what the foreign press says about Spanish rental housing trends of the last 5 years?
> 
> In Spain, like the other countries I looked at, I wasn't surprised to read that demand for rental housing has increased since beginning to recover from the global economic shock in 2008. Increased demand meant higher prices and, obviously, lower supply as new construction or conversion hasn't kept up with demand. It's the same in the US. One Spanish real estate investment firm said Spain has 2 million rental units (no idea how they define 'unit') and needs another 1 million.



Well there are plenty of empty, half built properties along the southern costas that they could finish and tidy up to meet any demands, but for whatever reason, they havent done anything. Whether they will or can??? Meanwhile, these "properties" are an eyesore and decaying by the day, and there is a slump still in the construction industry, which suggests that they dont feel there is a need?????

As far as I know, its still a renters market in Spain and rental prices arent high - obviously there are exceptions! So I'm not sure that what you've read is correct??? 

Jo xxx


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## Leper (May 12, 2010)

Jo is right, it is still a Renters Market in Spain. Anybody overcharging for rentals will feel the pinch sooner or later. Those of us who played fair all the time continue to receive fair rental.

There are thousands and thousands of properties for sale although many of them are not on the market yet; but any investor will tell you, if the price is right we'll sell. It is the same with rentals and acquiring good tenants (note the word 'good') is not easy. Investors will always invest, that is what we do!

Lessons have been learnt, many have been burnt, some properties will be sold at a huge loss. Some will buy now that the prices have started to rise again and will have a sound investment sometime. I cannot say when, but cycles run in cycles.


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## dancebert (Jun 4, 2015)

jojo said:


> Well there are plenty of empty, half built properties along the southern costas that they could finish and tidy up to meet any demands, but for whatever reason, they havent done anything. Whether they will or can??? Meanwhile, these "properties" are an eyesore and decaying by the day, and there is a slump still in the construction industry, which suggests that they dont feel there is a need?????


People built speculative housing because loans were cheap, real estate was in what used to be called a 'mania' but now a 'bubble' so there was always another buyer and optimism reigned. Such housing was built independent of demand. My understanding is such places were often built undesirable locations. Few want to move into a development that is empty or almost empty, fewer still if it's incomplete. Wouldn't surprise me if such monuments to greed decay until the best option is to tear them down. No idea how the Spanish government counts them, but I'd bet the real estate industry doesn't count them as housing stock.


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## jojo (Sep 20, 2007)

dancebert said:


> People built speculative housing because loans were cheap, real estate was in what used to be called a 'mania' but now a 'bubble' so there was always another buyer and optimism reigned. Such housing was built independent of demand. My understanding is such places were often built undesirable locations. Few want to move into a development that is empty or almost empty, fewer still if it's incomplete. Wouldn't surprise me if such monuments to greed decay until the best option is to tear them down. No idea how the Spanish government counts them, but I'd bet the real estate industry doesn't count them as housing stock.



Well they are mostly in very desireable areas, they over did the building, got greedy and many of these construction companies went bust, due to the recession and the buyers "drying up"

They probably do need knocking down?? But who would pay for that?? Who would pay to resurrect them?? Who even owns them??? 

Jo xxx


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## xabiaxica (Jun 23, 2009)

rental prices in my town have taken a dive

I now pay less than half of what we paid in 2003/4 for an apartment of much the same size (3 bigger bedrooms, bigger kitchen, smaller lounge) in the same block, with the same landlord


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## baldilocks (Mar 7, 2010)

jojo said:


> Well *they are mostly in very desireable areas*, they over did the building, got greedy and many of these construction companies went bust, due to the recession and the buyers "drying up"
> 
> They probably do need knocking down?? But who would pay for that?? Who would pay to resurrect them?? Who even owns them???
> 
> Jo xxx


You may well find that many are in not-so-desirable areas but in areas where the land was cheap because it was not so desirable coupled with the desire of an alcalde (or whomever) who wanted to capitalise on a piece of land he/she had acquired, so was prepared to arrange for a building licence.


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## Pesky Wesky (May 10, 2009)

The building boom was so massive in Spain that there was building everywhere, desirable areas, undesirable areas, the middle of nowhere, the middle of a city, illegal, legal, on protected land, on land designated for industrial construction.... You name it, north or south there was a crane there. The reasons are just as varied but the main reason it seems is that someone somewhere was making a packet out of it, again some legally and many illegally and this was not a new phenomenon to Spain. The late Jesús Gil made a fortune out of building dodgy buildings under dodgy circumstances in the 1960's. One building complex collapsed killing 58 people. He later became a politician (mayor of Marbella) and was the president of Atlético de Madrid for many years.

https://en.wikipedia.org/wiki/Jes%C3%BAs_Gil
Talk about history repeating itself.

I am seeing new builds here, not on the same scale as before by any means, but give it time. I think the people who have weathered the crisis are doing alright and are maybe ready to buy now and they don't want something that was half built 5 years ago. Also I've heard that in some circumstances it's difficult fot these half built constructions to get finished off if the original constructor is no longer in business


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## baldilocks (Mar 7, 2010)

Pesky Wesky said:


> Also I've heard that in some circumstances it's difficult fot these half built constructions to get finished off if the original constructor is no longer in business


and the bank that probably owns it now wants to recover as much as it can of the amount it originally laid out for something that is now in a somewhat deteriorated state and of dubious construction standards.


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## dancebert (Jun 4, 2015)

I'm a bit surprised at no responses on what the Spanish press says and has said about rental housing trends. I though living in one of the PIIGS would mean some would be keeping an eye on general economic trends. Also surprised no one mentioned the national law implemented in 2013 intended to encourage owners to become landlords, though it was discussed on this forum. Must be, as the Aussies say, 'No worries, mate.'


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## alborino (Dec 13, 2014)

dancebert said:


> I'm a bit surprised at no responses on what the Spanish press says and has said about rental housing trends. I though living in one of the PIIGS would mean some would be keeping an eye on general economic trends. Also surprised no one mentioned the national law implemented in 2013 intended to encourage owners to become landlords, though it was discussed on this forum. Must be, as the Aussies say, 'No worries, mate.'


From what I know the number of fluent spanish speakers here is limited so those who can ( and would wish to ) read the spanish press in detail would be limited but in any case the press is largely untrustworthy and the situation varies greatly between regions.

In my case in Cadiz and Malaga we are being flooded with rental and sales opportunities with everything stated as negotiable (even after big reductions). Seems no where near bottom yet. In Asturias (coastal) where we are owners (and still potential buyers) the market is more restricted. Prices went down through the crisis and our flat is at about 50% of pre-crisis. But now prices seem stable and supply of casas somewhat restricted. But we have seen properties that have been for sale for over 3 years.

And around Madrid where my spanish family exist  there still seems to them to be very much a buyer's market.

For us the most important thing, often offered by the wise old timers (as in long time on the forum ) here is that one must not assume a property is legal, that the builder used quality materials, that the builder gave a sh1t about his workmanship, and that finding out if you're buying a pig in a poke is a time consuming and potentially expensive process - but well worth doing. So if there are 1.5 million properties I could imagine only about half are what many might call habitable. Which still is a big reservoir to clear.

As for National laws


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## dancebert (Jun 4, 2015)

alborino said:


> From what I know the number of fluent spanish speakers here is limited so those who can ( and would wish to ) read the spanish press in detail would be limited but in any case the press is largely untrustworthy and the situation varies greatly between regions.


Thanks. I had no idea about the accuracy of the Spanish press. Also I can see (D'oh!) in the future I'd better be clear on the difference between Spanish, referring to the language, and Spanish, referring to Spain.


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