Flat rent prices on the rise in Valencia

Flat rent prices on the rise in Valencia

The property rental bubble, which has appeared in Valencia has generated a waiting list in real estate agencies, according to the newspaper Levante.

Prices in hot areas, such as Ruzafa have risen 16% in the last year, whereas the prices in the city as a whole have risen 4%.

The average rental price for a 125 square metre flat in Valencia is between 600 and 800 euros per month and the waiting list is mainly comprised of people who are waiting until a large flat in a nice area drops below 750 euros per month, according to the estate agencies. They say that the main cause of the increase can be put down to the fact that young people wishing to become independent are unable to obtain a mortgage. Most banks only offer 80% of the purchase price and the buyer also has to foot the 10% tax bill when purchasing a property which leaves an initial investment that most young people simply cannot afford.

Others argue that owners have lost interest in long term renters so place an unreasonable price on monthly rentals so they can profit from touristic rentals such as Airbnb.

Short-term renters are great for small businesses such as BikeAlao Bike Rental and Tours or bars and restaurants because they come and enjoy renting a bike or eating and drinking in the centre, Ruzafa or Poblats Maritim.

view of the City of Arts and Sciences

The estate agencies reject tourist rental flats as the cause for this increase saying that most short-term holiday renters are couples, and the waiting list is made up of people looking for 3 bedroom flats.

It is uncertain if the bubble will burst so many people are forced into sharing flats, if and when they become available at affordable prices and difficulty of obtaining a mortgage leaves the purchase option open only to those who have the money to pay for a flat outright, leaving landlords sitting happily in a win-win situation, which many people believe is unfair.

Whether you believe the estate agents is another matter. One thing for sure is that people looking to rent on an average income may both have to wait and think about the option of sharing.