more than 100,000 homes They may disappear from the rental market in Spain. It’s a warning from. Tecnocasa Chair at Pompeu Fabra University (UPF) as a result of a study they presented on the impact of housing law on the rental market.
In the opinion of the study authors, Rent limit in distressed areass (22%) and legal uncertainty (66.3%) can lead to many owners withdraw their property from the rental market and look for other job options. This means Disappearance of more than 108,500 homes currently leased or the same, The rental offer will be reduced by 11.7% nationwide.
When the current lease agreement expires, According to the research, 7.7% of homeowners are considering selling the house, while 4% are considering other options such as renting for non-residential use.
Barcelona and Madrid most affected
The offer will be reduced by 12.6% (24,090 fewer properties) in the city of Barcelona and 11.3% (43,113 fewer properties) in Madrid. Most affected areas Barcelona Eixamplewith a drop in supply of more than 16% and centre Madrid, with a 14.6% reduction in supply. The most worrying thing for rental property owners in Madrid is legal uncertainty (70.9%), while in Barcelona the rent limit in stressful areas (63%).
All these data come from the study ‘The impact of the New Housing Act on the rental property offer’, together with the semi-annual housing market Report by Tecnocasa Group and Pompeu Fabra University (UPF). Presented at Barcelona’s UPF Campus, which currently has 37 editions, along with data for the first period of 2023.
Stability in used housing
Lázaro Cubero, Analysis Director of Tecnocasa Group, Used house prices stabilize in Spain (a slight increase of 0.21% in the first half of 2023) and stands at 2,377 euros per square metre.
Highest price in Barcelona city (3,145 euros per square metre) and lowest in Talavera de la Reina (651). The city of Malaga offers the most significant increase of 8.84% in the first half of 2023, with 1,920 euros per square meter. The square meter of the city of Madrid is 2,794 euros.
in relation to mortgage marketAverage mortgage in the first half of 2023 stands at 121,782 euros, a -2.7% change from a year ago. The highest mortgage is again in the city of Barcelona (145,883 euros), followed by L’Hospitalet de Llobregat (135,788) and Madrid (130.525). Malaga has the lowest amount (94,471).
rent threshold
The loan-to-value ratio, which reached 80% in the first half of 2008 and was 72% a year ago, stands at 68% in the first half of 2023, one of the lowest values in the historical series. first period of 2022). The ratio between the monthly mortgage installment and the mortgage holder’s income was 35% for the period under review, the maximum recommended for minimizing the risk of default and the highest since 2011.
Other data in line with the current conservative policy of banks are: 82% of new mortgage loans have indefinite employment contracts (only 5% have temporary employment contracts) and the mortgage maturity is 28 years, far from 35 years in 2007.
Tecnocasa’s CEO, Paolo Boarini, also highlighted the significant change that mortgages have undergone in the last six months. Mixed-rate mortgages more than doubledIt increases from 14% in the first half of 2022 to 30% of the total in the first half of 2023. Fixed rate mortgages amounted to 83% of the total in the first half of 2022, now 51% of mortgages issued in the first half of 2023.
In the first half of 2023, the average interest rate applied in variable housing loans was 4.92%, and in fixed housing loans, it was 3.25%. Finally, the monthly payment by mortgage type during the period under review was €620 for variable mortgage and €560 for fixed rate mortgage, increasing 46% and 28% monthly for variable mortgage.
Cubero has also studied the rental market. The main result is rental price rises in most of the populations analyzedthe most significant are the increases in Valencia (14.3%), Barcelona (11.9%) and Madrid (8.6%). The highest price is in Barcelona (16.5 euros per square metre).