Member Article

Rental Demand in Spain Soaring

Demand for rental properties thoughout Spain grows exponentially as available property supply shrinks

Demand for Spanish rental properties has soared over the past twelve months, with four potential tenants now chasing every new property on the rental market.

The demand has pushed rents up across Spain especially on the Costa del Sol and Costa Blanca and all major cities such as Madrid, Barcelona and Malaga.

The rental market throughout Spain is more and more competitive with rental property demand rising at the same rate at which available property supply is dropping.

The massive shortfall of rental properties coming onto the market means that rents will continue to increase allowing landlords a fair return on their investment.“

Normally a strong rental market is associated with buyer demand weakening, as more families choose to rent rather than home ownership. However, most if not all house price indices suggest that the property market is heating up and demand remains strong, suggesting there is now both a shortage of properties available to buy and rent.

With the recent changes in UK pension legislation more people are looking to invest their pension funds into a second property as a way of supporting their retirement provisions.

Successful Mortgage applications has also risen in excess of 200% since last year.

Eventually, this should filter down to the supply level over the coming months helping to ease the rental property shortfall.

Do you have a property to rent?

If you are looking to rent a property, please contact one of our Professional Agents Registered on Agents Wall

This was posted in Bdaily's Members' News section by Joe Graham .