The price of rental housing has increased by 16.5 percent year-on-year in the Valencian Community in January and 18% compared to December, reaching €10.30/m2 per month on average, according to data from the Real Estate Index Photohouse. These data coincide with those of other portals, such as idealista, which at the end of 2022 published very similar data using its database and which found price increases of almost 16% on average in the Community.
By provinces, Alicante registered an interannual increase of 21.2% with €9.61/m2 -the second Spanish province with the highest increase–, Valencia experienced a rise of 17.5% to €11.30/m2 and in Castellón prices increased by 3.9% with €7.19/m2 per month.
This is the third highest year-on-year rise in Spain, although the average price per square metre remains below the state average (€11.21/m2).
Regarding the price per square metre in January, the fact that there are three municipalities where renting a home is even more expensive than in the capital Valencia stands out, with rent reaching 1,400 euro per month for a 100-square-metre flat. This is the case of Alboraya, a municipality attached to the capital and with a residential area (Port Saplaya) next to the sea, Canet (located next to Sagunto, where the Volkswagen gigafactory is going to be established) and Benidorm, the national tourist epicentre.
In order:
- Alboraia (€14.44/m2 per month)
- Canet d’En Berenguer (€13.13/m2 per month)
- Benidorm (12.82 €/m2 per month)
- Valencia capital (12.68 €/m2 per month)
- La Pobla de Farnals (€11.87/m2 per month)
- Altea (11,53 €/m2 acres)
- El Campello (11.37 €/m2 per month)
- Alicante (10.73 €/m2 per month)
- Dénia (€10.63/m2 per month)
- Santa Pola (10.47 €/m2 per month).
In all the municipalities analysed, the price of rental housing has increased compared to the previous year. Benidorm is the one that accumulates the most increases in January with 33.8%. Followed by Gandia (25.8%), Alicante (23.8%), Valencia (23.7%), Torrevieja (20.6%), El Campello (17.5%), Elche (15, 4%), Alcoy (10.6%) and Castelló de la Plana (3.9%).
In Spain as a whole, the price of rental housing rose 1.6% in January compared to the previous month and 8.7% year-on-year, its biggest rise since October 2020, according to data from the Real Estate Index, Fotocasa published this week.
Specifically, the rental price started the year at 11.21 euro per square metre, with seven autonomous communities reaching maximum prices.
The director of Studies and spokesperson for Fotocasa, María Matos, explained that the rental price has set new all-time highs in Spain due to the reduction in housing supply by more than 30%, which has generated a “great imbalance” between supply and demand, pushing prices up.
«The rage to sell, the return of tourist homes to the holiday market and the overregulation of the market, considered as such by the owners, have drastically contracted the offer. The situation is becoming more and more complicated, especially for the most vulnerable groups that cannot access housing”, Matos emphasises.
In his opinion, the “frustrated” demand to buy a home due to the rise in interest rates will go to the rental market, which will add “more pressure” to the scarce supply. In this way, Fotocasa foresees “continuous” increases in the rental price.
