Buying Spanish property is more affordable than renting, as rents have risen rapidly in Spain over recent years.
Overseas property investors buying residential property in Spain will find that it is more affordable than renting in all areas, including the major cities of Barcelona, Madrid, and Valencia.
Renting costs in Spain have jumped by around 50 per cent over the last five years, according to a study by the Bank of Spain, meaning that in 15 major cities it is more affordable to buy with a mortgage than pay rent.
The latest research by global estate agency Century 21 found that all of the major cities saw buying properties more affordable than renting.
In Sevilla, the cost of buying with a mortgage came to just 19 per cent of the average salary, which is €2,671 a month, while in Valencia it was just 16 per cent of €2,776.
Rental outlay in the same two cities, meanwhile came to 32 per cent and 26 per cent of monthly earnings respectively.
In Murcia – where the average salary is €2,683 a month – tenants are paying 20 per cent of their salary on rent, while owners pay a much more affordable 11 per cent on a mortgage.
Another example showed that the owners of a 90-square-metre apartment in Madrid pay a mortgage of €960 per month, while tenants are paying €1,419 per month, an alarming 40 per cent of a family’s income.
Only Barcelona cost more to rent at 44 per cent of average earnings, while Palma in Mallorca cost 34 per cent.
CEO of Century 21 for Spain and Portugal, Ricardo Sousa, explained: ‘Renting has become a necessity for many people who can’t afford to buy.
‘Today, major cities around the world face the challenge of providing affordable and adequate solutions.
‘This is especially the case in large cities such as Madrid and Barcelona, where there is strong population growth, while housing options with affordable prices are scarce.’
With buying property more affordable than renting in all areas of Spain as rents continue to rise, good investment yields can surely be found for British overseas property investors.