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Thursday, February 29, 2024

House prices stabilized in the second half of 2023 while rents continued to skyrocket

Housing prices and rents evolve at very different rates. While The cost of purchasing a second-hand house stabilized in the second half of 2023, rental income continued its sharp rise with an increase of 5.4%, according to a report on the housing market presented this Tuesday and prepared by Tecnocasa and the Pompeu Fabra University (UPF). The tension redoubles in the rental market, which is reaffirmed as the more expensive option in the long termdespite its initial attractiveness in a context of high interest rates.

Regarding the second half of 2022, the price of used housing grew in Spain in the second half of last year by 1.69%, below inflation. Specific, per square meter was paid at an average of 2,564 euros nationwide, 36 euros higher of the data recorded a year earlier.

Instead, the rise in rents was much deeper. They rose on average in the country as a whole by 5.45%, with significant increases in large cities such as Barcelona (9.7%), Madrid (7.82%), Seville (8.04%) and Valencia (7.84%). %). At the national level, the rental square meter stood at 12.58 euros on average in the second half of 2023.

Young voucher rental.

“In the long term, buying a home is more interesting than renting in all of the populations studied,” explains the Director of Analysis of the Tecnocasa Group, Lázaro Cubero, about the study presented this Tuesday, which compares the rental income and the mortgage payment in the long term (25 years) and in the first year According to the results, after 25 years paying the mortgage or rent, the purchase saves between 100,000 and 150,000 euros in more than 45% of the almost 700 municipalities observed. In the cities of Madrid and Barcelona, ​​the positive balance in favor of the buyer is even higher, between 200,000 euros and 250,000 euros.

In the short term, the comparison is more variable, largely due to the current context of high interest rates, although the balance falls again on the purchase side. “We can highlight that, in the first year of purchase, the rental income is higher than the amount paid in interest in all towns,” notes Cubero.

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