Spanish Apartment Rents Hit Highest Level in a Decade

(Bloomberg) -- Apartment rents in Spain rose to the highest level since 2009 in April, a month after the Socialist government capped increases.

The average monthly rent rose by 0.1% from the year-earlier period to 8.54 euros ($9.50) per square meter per month, according to property website Fotocasa, which tracks asking prices. Still, the pace of growth slowed after a 2.1% jump in the first quarter.

Rental prices, which vary widely across Spain, are a priority issue for Prime Minister Pedro Sanchez and his allies in the anti-establishment Unidas Podemos group. In March, Sanchez pushed through a decree over conservative opposition that limits rent increases by tying them to inflation.

It’s still too early to say how the government’s cap and other pro-tenant measures will affect the hottest markets such as Madrid, where the average rent rose 10% in the 12 months through April. The government has said the rental market is overheated, particularly in major cities like Madrid and Barcelona, where thousands of apartments have been turned into short-stay holiday accommodation.

To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Patrick Henry, Marion Dakers

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