Rental properties in the Canary Islands, in March, averaged 94 square meters costing an average rent of €615 per month, signifying a quarterly increase of 6.03%, the fastest rise in Spain; compared to March 2016, the annual increase is 15.6%, which makes the canary islands the third fastest growing region, in terms of rental prices, according to a quarterly report on rental prices from pisos.com.
The Canary Islands were the seventh most expensive region for tenants, behind Madrid (€1,090/month), among others. Meanwhile, the types of flat for rent in Spain were an average area of 112m2 for an average monthly rent of €675, signifying a quarterly increase of 1.5%.
Monthly, prices fell -0.59%, but grew year-on-year by 10.29%.
Rental prices have now reached record highs in certain locations. “The chronic shortage of supply that this market suffers in Spain, has been joined by growth in demand that decides the rents,” said Miguel Angel Alemany, general director of pisos.com, in whose opinion “the increasing quota of renters is due to the lack of savings and solvency necessary to obtain financing and invest in [property] purchase.”
However, Alemany also admits that behind this rally in interest in the rental market is the fact that, “in some cities, the second hand [property market] does not respond to the search criteria, so some people decide to wait while renting”
The real estate portal boss revealed that the pressure under which this market finds itself only increases its attractiveness as an investment: “Given the profitability that this asset is currently returning, the loss of value in the properties that took place during the crisis now seems very far, ” he concludes.
Compared to December 2016, Las Palmas (-0.67%) was the province that had regressed least in Spain. For its part, Santa Cruz de Tenerife (8.06%) showed the second most fastest increases in Spain. Interannually, Santa Cruz de Tenerife (+15.92%) was the fifth most expensive Spanish province, while Las Palmas (+9.63%) has rebounded.
An average monthly rent of €740 in March 2017 placed Las Palmas as the tenth most expensive Spanish province for tenants, while Santa Cruz de Tenerife, at a monthly average of €670, was the thirteenth.
Las Palmas de Gran Canaria (+5.46%) was the seventh fastest climbing Spanish capital compared to December 2016. Santa Cruz de Tenerife (+4.84%) was twelfth in this ranking. From year to year, Santa Cruz de Tenerife (+17.75%) led the national rises, while Las Palmas de Gran Canaria (+14.79%) was seventh in this list.