EXPLAINER: Why getting affordable long-term rental accommodation in Spain has become very difficult

FINDING an affordable rental property is getting harder in Spain according to online real estate portal Fotocasa, who say rental availability has reached a ‘record low’.

A survey from the group says the number of people living in rented accommodation in Spain has risen by 1% in the last year to 24%.

Fotocasa spokesperson, Maria Matos, said: “We have never seen so little availability of rented properties which is putting an upward pressure on prices.”

One factor according to Matos was last year’s big rise in property prices which encouraged owners to sell and cash in, leaving a much-reduced pool of accommodation.

In March, the number of available rentals was below 100,000 units- compared to 180,000 during the Covid-19 pandemic.

There have been warnings that availability will decrease further over coming months with another reason being last year’s new Housing Law that gives more rights to tenants.

The biggest fall in renters is among younger people aged between 18 and 34 years, with a 7% drop since August 2022.

In relation to house purchases, Fotocasa says the economic situation with higher mortgage interest rates is causing people to hold back.

“A potential buyer does not have enough savings, there’s an uncertainty over keeping down a job, or there are simply other priorities over buying a house,” said Maria Matos.

“Higher prices and credit restrictions have forced potential buyers to look into getting a rental but that market has contracted,” she added.

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