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PROPERTY

The cities in Spain where people fight most over a place to rent

The severity of Spain's rental market crisis has been laid bare in new data showing exactly where demand is highest and people are forced to compete with many others just to find a place to live.

Published: 11 April 2024 09:19 CEST
The cities in Spain where people fight most over a place to rent
The biggest city in the Canary Islands, Las Palmas de Gran Canaria, is among the cities where people fight most over a place to rent. Photo: Anna Vi/Unsplash

New rental data has revealed that for every home advertised in Spain, on average there are 27 parties interested in it.

This comes amid growing concern in the country about the affordability and availability of rental properties, and demonstrates the double-edged sword making life tough for renters in Spain: high demand (and thus prices) but low supply.

In several parts of the country, regional authorities are attempting to bring in rent controls in ‘stressed’ local markets. Data property portal Idealista, the average rental price in Spain rose by close to nine percent in a year (from February 2022 to February 2023), which was the highest amount in its historical record. In big cities this figure is pushing 20 percent in many places.

READ ALSO: What will happen to rents in Spain in 2024?

According to the figures with regards to demand per advert, which were cited by Spanish daily El Mundo, the demand for rental properties in Spain is a situation that is rapidly deteriorating: whereas this year every advert has 27 interest parties, in 2023 the average was 17 applicants per property in the first quarter of the year.

In cities and provincial capitals the pressure is even greater, where the number of contacts per advert can reach three times the average. However, cities with the highest demand per property advert aren’t where you might expect.

Francisco Iñareta, a spokesperson for Idealista, said in the Spanish press that the figures “show that the destruction of supply caused by rental policies worsens the possibilities of accessing housing, especially in the case of young people and vulnerable families.”

“This increases the pressure on prices, multiplies the difficulties in finding a home, and worsens the distribution that those looking for housing have to face.”

This situation essentially forces people to fight over properties to rent, he said, which “increases competition between potential tenants… [and] excludes a large part of those interested from the market.”

The cities in Spain where people fight most over a place to rent

According to the Idealista data, the rental markets in Spain’s two biggest cities, Madrid and Barcelona, predictably receive the highest number of interested parties in absolute terms. This is due to the cities having the largest number of properties, and therefore rental adverts, in total.

For each advertisement that is published, there are 41 (Madrid) and 40 (Barcelona) interested parties, respectively.

These large markets are followed by Palma de Mallorca (38 families), Valencia (29), Malaga (28) and San Sebastian (28). Interestingly, below the national average are Bilbao (26 per advert), Seville (25) and Alicante (22).

However, looking at the figures in terms of enquiries per advert, Madrid and Barcelona fall down the rankings.

Vitoria, in the Basque Country, takes the top spot overall, with 70 interested parties per property. It is followed by Guadalajara (59), Santa Cruz de Tenerife (44), Las Palmas de Gran Canaria (41) and Pamplona (41).

At the other end of the spectrum are cities like Salamanca (7 parties each advert), Ciudad Real, Ourense and Badajoz (all 8 per advert).

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VISAS

Spain’s soon-to-end golden visa: Can I still apply and what if I have it already?

Last April, Spain's government said it intends to axe its property-based golden visa scheme, but is it too late still apply, how long does it take and what happens if you have the visa already? The Local spoke to an immigration lawyer to find out.

Published: 17 May 2024 12:25 CEST
Spain's soon-to-end golden visa: Can I still apply and what if I have it already?

The golden visa programme, also known as the visado de residencia para inversores in Spanish, grants non-EU nationals residency in Spain when they buy a property in Spain worth €500,000. 

It can also be obtained by investing €1 million in shares in Spanish companies, or €2 million in government bonds, or having transferred €1 million to a Spanish bank account. 

In early April, Prime Minister Pedro Sánchez announced he was axing the property-based golden visa, although there’s no new law in place yet.

READ MORE: What the end of Spain’s golden visa means for foreigners

More recently the government’s junior coalition party Sumar had said that they have now filed an official bill in the hope they can scrap it as soon as possible.

Sumar spokesperson Íñigo Errejón told journalists that the visas are a privilege that must be scrapped “immediately” because they have an inflationary effect on the housing market.

All of this means that those still interested in still getting the visa are confused. They don’t know when the scheme will end, if they still have time to send in applications and what will happen to those who are already in the process of applying.

In order to help answer some of these pressing questions, The Local Spain contacted María Luisa De Castro from CostaLuz Lawyers in to find out more. 

Q: When will the Golden Visa scheme officially end?

A: “The exact date for the official end of the Golden Visa scheme has not been fully detailed yet. Initially, changes would be implemented in the near future, potentially within the next few months. Some optimists believe it might be a bluff by the government and that it may not be implemented after all.”

READ MORE: When will Spain’s golden visa scheme officially end?

Q: Has the process of applying changed?

A: “As of now, the process remains unchanged, so it’s exactly the same as before.”

Q: Can people still apply for now?

A: “Applications are still being accepted. However, given the recent announcement, it is advisable for prospective applicants to act swiftly.”

Q: What will happen if I’m in the middle of the application process?

A: “For those currently in the middle of the application process, their applications will still be processed under the existing rules. Once the new regulations come into effect, it will very likely come with some transitional provisions to handle ongoing applications.”

Q: What about those who want to invest instead of buy a property?

A: “The visa remains available for other investment options such as investments in companies, public debt, etc.”

Q: What if I already have the golden visa through property investment, will I be able to renew it in the future?

A: “Our opinion (and that is what we will defend) is that renewal rights are acquired when the visa is granted and therefore cannot be subsequently reduced, as this would constitute a retroactive limitation of individual rights. The Spanish Constitution prohibits retroactive application of laws that are not favourable or that restrict individual rights once they have been acquired.”

Q: How quickly can I get the golden visa?

A: This depends on where you apply from. According to the CostaLuz Lawyers, if you’re applying outside the country “You should apply at least 90 days before you plan to travel to Spain”. If you’re inside Spain, you can apply through the Unidad de Grandes Empresas. This could take anywhere between 20 and 60 days.

CostaLuz Lawyers argue that it’s not necessary to wait until the property purchase has gone through, that you can apply with your initial contract or a statement from your bank in Spain, certifying that you have deposited at least €500,000.

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