Gonzalo Bernardos, professor of economics at the University of Barcelona, discusses the problem of rent in Spain: “This is a national problem in the first category”. During the presentation of the Engel & Völkers annual report, the academic added that “consecutive governments did not take into account and did not develop land to build rental housing”.
Bernardos says that public administrations do not develop rental rental housing as they did in the 60s and 70s, and he encourages them to do so even though he says “we’re late”. “There is no official VPO. 85,000 or 90,000 homes delivered each year, Less than 5,000 rental VPOs“The teacher explains.
Why does rent go up?
According to the Engel & Völkers report, Average rental price skyrocketed in major cities and coastal areas Up to 2,497 Euros for high-end homes in 2022. According to the statistics of the high-end and luxury property marketer, the average rental cost in Madrid and Barcelona exceeds 20 euros, while in Valencia, despite being the capital where the cost increases the most, it is still around. 15 euros.
Gonzalo Bernardos highlighted several reasons for the boom in the rental market. First, the status of what he calls the “sinister generation”: those who were between the ages of 23 and 26 at the time the property bubble burst in 2008 and have lived in a constant crisis of instability and low wages ever since. This “sinister generation” is one of the most in demand for rental housing because it never had access to an owned home..
The growth in the rental market also affects sales. High mobility of Spanish citizens: Foreigners residing in Spain and working remotely, managers who spend several days a week in a rental property in a major city and then return to their usual residence, and finally, the number of students studying their degree or master’s degree outside of their usual place of residence.
New Housing Law
Catalan professor, given the inaction of the State, The problem is placed on the private sectorIt was noted that some political parties positioned their owners as a problem. He also points out that the new Housing Law will only reduce the stock of flats on the market and harm the lower classes.
Because? The scholar believes that Flat owners will prefer to rent on a room basis., does this through a service contract, not a lease regulated by the City Planning Law. This will create more competitiveness when it comes to acquiring a full house to be kept by the highest income family. “I’m interested in modest families and immigrants because they’re going to have a really hard time getting a home because the homeowner will pick the highest earner based on warranties.”
Bernardos gave an example of an apartment to be occupied by a manager who was rented for 1,000 euros per month and received 3,000 euros; Young people earning between 1,200 and 1,800 euros will have to settle for a room if they want to live in a central area. He accepted this If you live 30 or 40 kilometers away from the city center, you can own a house between 700 and 850 euros.although he remembers that the offer was sold out there as well.