Rent in 2020
Posted on 8 January, 2020 by maribel lladró
Welcome one more week to the RedBox real estate blog!
In today's post we will comment on the current situation of the real estate market with respect to rent in 2020, after experiencing a rise in the price never seen before.
Rental demand
The recent crisis situation experienced by the country, changed the rule that followed so far, in which the purchase of flats was the main option, changing to a cheaper option especially for the youngest such as rent.
According to a study by BBVA Research, one in five homes in Spain are rented and the expectations are that their number will grow over the next few years due to the arrival of new emigration or the change in mentality of younger people who join the labor market. This will cause Spain to be equal with the great European powers, in which the popularity of renting is much higher.
Prices
After the great rise experienced in recent years, prices seem to have peaked, and everything indicates a stabilization in them for the future, according to experts in the sector. A continuous rise in prices is very difficult, since since 2013 there has been a rise of more than 50% according to data and reports from the Bank of Spain.
Rental problems
In Spain one of the main problems of renting is that the owners have a great distrust of possible defaults of the tenants, which results in a preference in the sale of the property. In addition, the Rental Law focuses on protecting the tenant mainly with respect to the owner, which reduces the supply of flats to rent.