NOT everything related to property in the Balearics is expensive, according to a report released yesterday. It reveals that the average cost of renting property here on the Islands stood at 5.92 euros a square metre last year, somewhat lower than the Spanish national average which was calculated at 7.2 euros.
The study, commissioned by the central government Ministry of Housing and carried out by a Housing Rent Watchdog, confirmed that there are 56'861 homes currently being rented in the Balearics, of which 29'553 are furnished and 27'308 unfurnished.
The figures put together in this research place the Islands at tenth down the list of Spanish regions, ranked in order of most expensive down to cheapest. These ratings contrast greatly with the Balearics' leading position in terms of owned property values.
Rented accommodation on the Islands are only more expensive than those in Andalucia where last year the average price was 5.31 euros per square metre; Aragon (5.08 euros); Castilla y León (4.01 euros); Extremadura (3.91 euros); Galicia (3.29 euros) and the Spanish cities of Ceuta and Melilla in North Africa (4.29 euros).
Taking a look at the other end of the scale, the most expensive property to rent can be found in Madrid where in 2006 average prices amounted to 11.38 euros per square metre; the Basque Country (9.92 euros); and Navarre (7.55 euros).
PRICE STABILITY
The Housing Ministry commissioned report suggested that there currently exists a stable trend in the pricing of rented property across the country, largely due to the fact that the figures for last year were up only 0.6 percent on those for 2005.
The Ministry was not prepared to release percentage details of the year-on-year increases in rental prices across the different regions of Spain, although it became clear that any rise was below that witnessed in a similar study on owned (as opposed to rented) property. Figures for the Balearics last year showed a 9 percent rise between 2005 and 2006, situating the cost of a square metre of constructed property at 2'311.7 euros.
Examining the data at a national level, rented accommodation accounted for hardly 11.25 percent of the housing total in 2006 (1.79 million homes). This percentage has dropped in respect of 2001 when 11.4 percent of families lived by renting property (1.6 million homes).
Half of homes rented in 2006 across Spain (49.3 percent) had a surface area of between 60 and 90 square metres.
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