Get ready, curves are coming. The rental price will register a “notable increase” in September, with average rents reaching 900 euros per month.
This is the forecast made by Seguro Rental, despite the fact that it points out that in 2023 a certain trend towards price stabilization has been observed.
“These high price spikes are explained by factors such as the increase in displaced tenants at this time of year, the cost of mortgages and a supply that is unable to absorb the peak demand,” the company explains.
So, We find ourselves in a month in which the search for housing by displaced students and professionals has been reactivatedwhich represents a considerable increase in demand.
Furthermore, it must be added that the high cost of mortgages generally means that renting becomes the only possible option that many people have to access housing.
On the other hand, the rise in the Euribor also has an impact on the owners, since Those with mortgages will offer their rents at a higher price to be able to face the rise in mortgages.
“This fact, together with the aforementioned increase in demand, represents the perfect breeding ground for us to find ourselves the highest closing prices of the entire year,” explains Rental Insurance.
The company has compared this year’s evolution compared to 2019 “to observe how this market behaved under normal conditions, prior to the pandemic.”
Thus they conclude that In 2019, prices were more stable and balanceddespite the increases experienced in rents in January, May and August.
“In the first months of 2023 something exceptional happens, and what does it have to do with the announcement and the definitive approval of the Housing Law. As a consequence of the climate created with the new regulations, the price curve in 2023 does not stop rising due to the serious contraction in supply, distancing itself significantly from what was happening in the market in 2019,” says Antonio Carroza, president of Rental Insurance.
“Before the pandemic, supply did not find it so difficult to absorb demand. The imbalance situation in 2023, with an oversized demand due to the factors analyzed above, is notably greater than it was in the months prior to the pandemic,” concludes Carroza.
The search for balance
Rental Insurance remembers that to reduce the tension in this market, among other measures, Public administrations must implement actions that stimulate supply. Otherwise, even in a somewhat more stable scenario than the one we have experienced in recent years, price peaks that are difficult for tenants to accept may occur (as happened in September of this year) due to the seasonality of this market.