Property

Price of rented accommodation higher than in pre-crisis era

The cost of rental in the Balearics has gone up markedly in the past three years. | Efe

Majorca Daily Bulletin reporterPalma27/11/2017 00:00

Figures from the national ministry of development point to the cost of rented accommodation now being higher than in 2007 in only two regions of Spain - Catalonia and the Balearics. The special bulletin on residential rentals released by the ministry indicates that prices elsewhere are lower than in 2007 and by as much as 29% lower, which is the case in Castile La Mancha.

The president of the Balearic real estate agents association, José María Mir, says that the Balearic prices are typical of a property bubble. He suggests that despite the passing of the rentals' legislation in the summer, there has barely been any change in the rentals' market. He in part attributes this to demand by foreigners.

Mir adds that there is supply but that the prices are very high. The average monthly rent for a two-bedroom apartment in Palma is between 900 and 1200 euros, which is almost double what it was three years ago.

According to the ministry's report, around a third of residential accommodation in the Balearics is for rent. For Spain as a whole in 2016 the figure was 22.2%. A European Union average is 30%.

The comparison with ten years ago has been made because 2007 was prior to the effects of economic crisis filtering into the property market. While prices in the Balearics and Catalonia are above the 2007 figures, the variations aren't that great - plus 1.4% and 1.3% respectively.