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Palma rents soar higher than the rest of Spain

Rents have risen by more in Palma than in other cities. | Archive

| Palma |

A study by the Bank of Spain reveals that the cost of rented accommodation in the country rose in some instances by 40% between the end of 2013 and May this year.

In the final quarter of 2013, rental prices were at their lowest for six years, the financial crisis having affected them.The report shows that the increase has been far from uniform.

The highest increases, of around 40%, have been in certain provincial capitals, while elsewhere they have gone up no more than ten per cent.

Unsurprisingly, the highest increases have been in the major cities of Madrid, Barcelona and Valencia and those with high levels of tourism - Palma, Malaga, Las Palmas and Santa Cruz.

In capitals in the country’s interior, with the exception of Madrid, the increases have been very much more modest. The Palma increase in fact outstrips rises in other cities - 55%, compared with Barcelona on 50% and Malaga 45%.

Between 2008 and 2018, the bank indicates, the total number of properties for rent rose from 2.4 million to three million, 24% of all properties. In the Balearics, this percentage was at its highest - 28.3%. By comparison, the numbers in Catalonia, the Madrid region and the Canaries were, respectively, 26.3%, 23.6% and 19.5%.

In terms of age of tenant, in 2010 the 30-44 age group represented 19.1% of all tenants. By last year this had risen to 29.9%.

Average household spend on rent was 27.8% in 2014. This has now, for households with low incomes, gone up to 47%. The average in OECD countries is 13.1%.

The Balearic government is determined to try and introduce new measures which will not only cap rents but also enable easier access to cheaper housing for young people and seasonal workers who, in some coastal areas of the Balearics, have this year found it impossible to find reasonable rental rates which has made it harder for resort employees to find staff.

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