Rise in Andalucia’s Rental Property Costs
In the third quarter of 2023, rental property costs in Andalucia have seen a significant increase of 10.2% compared to the same period in the previous year. This data was reported by Fotocasa, a leading real estate portal. However, despite this sharp increase, there has been a decrease of 3.7% in prices compared to the second quarter of the year, which covered the months of April to June. The average cost now stands at €9.43 per square metre per month.
Diversity in Rental Prices Across Cities
The rental prices across different cities in Andalucia show a wide range. Marbella leads the pack with a cost of €16.18 per square metre. Other centres such as Benalmadena and Torremolinos also command high prices. Eduardo Gonzalez, the manager of real estate agency Casa Jerez, pointed out that tenants have played a role in sustaining the rental boom. He noted that tenants are willing to pay the high amounts asked by landlords, thereby contributing to the escalating costs.
Screening of Potential Tenants
Gonzalez also highlighted that the process of renting a property has become more complex. Potential tenants are now subjected to financial screening. The process is no longer as simple as expressing interest in an apartment and agreeing to pay for it. Landlords now inquire about the tenant’s ability to afford the rent. If the landlord is not convinced of the tenant’s financial capability, the deal is not sealed. Gonzalez suggested that civil servants are in a favourable position to secure rental accommodation due to their stable financial status.
Variability in Andalucia’s Rental Market
The rental market in Andalucia has shown some fluctuations across its provinces. There have been eight quarterly falls and eight year-on-year increases recorded. This variability is indicative of the dynamic nature of the rental market in the region.
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