Author: Oscar Vazquez
Prices in Spain rose 8% compared to last year, despite a 2% cap on live contracts
Price from households in lease in Galicia In the first quarter of this year, it increased by 2.8% to 7.7 euros per square meter, according to the latest report published by the portal. Idealistic.
At the annual level, the increase is 6.3%, although it is still 19.7% below the maximum in Galicia, recorded in May 2007.
Prices rise in all Galician provinces during the winter, including A Coruña and Pontevedra (3.2% in both cases) where they rose the most. The provinces of Lugo (1.2%) and Ourense (0.7%) follow.
Lugo is still the cheapest province in Galicia at 5.8 euros per square meter per month, followed by Ourense (6.2 euros/m2). The most expensive is Pontevedra (8.7 euros/m2), followed by A Coruña with 7.6 euros/m2.
According to a report by Idealista, prices behaved unevenly between the main Galician cities during the last quarter. Lead the climbs Vigo (4.1%), and then A Coruña (2.9%) i easy (2.5%). Rents, on the other hand, fell in Pontevedra (-0.5%), Santiago de Compostela (-0.4%) i Ourense (-0.3%).
Vigo remains the most exclusive Galician city with 9.5 euros/m2, followed by A Coruña (9.1 euros/m2). They are followed by Santiago de Compostela (8.2 euros/m2) and Pontevedra (7.4 euros/m2). Lugo is the cheapest capital (6.3 euros/m2), followed by Ourense (6.5 euros/m2).
Criticism at the top of the rent: “It’s devastating”
What happened in the set Spain with rental prices? According to the data collected in the report, they grew by almost 8% compared to the same quarter in 2022breaking the record of 11.3 euros/m2, according to the real estate portal, which sees the effect of the 2 percent increase on the market as “disastrous” because it drastically reduced the supply and caused an increase in real estate prices. new contracts.
Of course, compared to the previous three months, rent growth is moderate at 2.4%.
In addition to all that, since the beginning of the year, the rental price has increased by 7.8% in January, 8% in February and 7.9% in March compared to the same months of 2022.
Idealist experts assure that, if the measures envisaged by the Government are implemented, such as, for example, index-based rent cap which, he assures, is already outdated, the situation will worsen. They insist on it The main problem of renting in Spain is the lack of available supplyand the measures taken or announced by the Government, far from solving the problem, only make it worse.
They claim the 2% cap on rent updates, now a year old, has had a “devastating” effect on the market by prompting many homeowners to take their homes off the market and pushing others forward into new contracts. increases that they will not be able to do later.
The result, he adds, is nothing but a drastic reduction in the available supply and an increase in the prices of available homes.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
