Essential Business

Rents rise but growth falls

 In News, Property, Rental market

Rental costs are continuing to rise but their growth rates have continued to cool throughout the pandemic period.

In the second half of 2020, rents increased by around 5%, a variation that was well below growth growth rates seen in 2019 and before.
Taking into consideration the last three months of 2020 alone, growth rates have slowed even more.
According to data released on Monday, 29 March by the National Statistics Institute (INE), which states that the average value of family accommodation rents on new rental contracts stood at €5.61m2 in the second half of 2020, an increase of 5.5% on the like-for-like period in 2019.
In the second half of 2019, before the pandemic, the average value of rents continued to increase, the growth now seen represents around a half of what had been registered a year ago.
This trend for market prices to slow is even more stark when analysing the fourth quarter of 2020 alone. In this period, the average rent represented a like-for-like increase of 3.8%, below the variation of 5.2% that had been registered in the third quarter.


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