Business Maximum rental prices only for vulture funds and banks

Maximum rental prices only for vulture funds and banks

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Thursday,
16
January
2020

07:13

Realtors warn that generalizing the measure will leave less housing in the market


Poster announcing a flat for rent in Alicante.
E. M.

At a time when the medical focus is once again on rent -because it continues its price escalation and on the table of the new Government is a hypothetical regulation of maximum prices-, in the Valencian Communityslow its increase in the last quarter of 2019. According to the data that the Association of Realtors of the Community (Asicval) offered this Wednesday, the increase was 6.82% compared to 10.37% in the same period of 2018, although it continued to grow in the cities of Valencia (+11, 76%) and Castelln de la Plana (+ 9.46%) to peaks of almost 800 euros per house.

Hence, the president of the association and the Federation of Real Estate Associations of Spain (FAI), Nora Garca Donet, pointed out that a possible mandatory price limitation – something also supported by the Consell del Botnic – could be counterproductive when producing the opposite effect.That is, fewer homes in the market and more expensive monthly payments. Now, that price limitation will make sense for vulture funds and banking entities, according to Europa Press.

In any case, real estate agencies see the slowdown in rental prices healthy becausethe high and prolonged rises constitute a social emergency. They ask the new Government to lower taxes and look for imaginative formulas, as in other countries, to guarantee the right to decent housing, such as guarantees for tenants and tax incentives for landlords who adjust prices voluntarily, something that has already been raised In the Valencian community.

Monthly payments

According to the Asicval data, the monthly rent of the new housing rents once again registered a general increase in the fourth quarter of 2019, although less pronounced. The average rental price in October, November and December went from 563 to 601.4 euros,a progressive slowdown that occurs in the three provinces.

For Asicval, it highlights the situation of the city ofAlicante, which went from the 15.76% increase in the last quarter of 2018 to a slight decrease of 2.65%, from 652.4 to 635.1 euros. InValencia capital, it has gone from almost 30% to an increase of 11.76%, from 709.9 to 793.4 euros. And inCastelln, from 3.16% to 9.46% when rent increases from 457.6 to 500.9 euros.

By neighborhoods, rentsrose in the whole of 2019 throughout Valencia, especially in Rascanya (+181.1 euros), except for the slowdown in Ciutat Vella. The realtors believe that it is because the tenants prefer the center or houses with new equipment on the outskirts.

On the other hand, the cost of the square meter inthe sale of used housing experienced a freezein the last quarter of last year, on average 0.86% decrease compared to the 9.37% rise recorded in 2018. Again, we must highlight the promotions in Valencia (+ 9.84%) and Castelln ( + 13.92%), according to Asicval data.

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. (tagsToTranslate) Valencian Community (t) economy (t) business and finance – construction and real estate (t) Asicval (t) Valencian Community (t) Castellón (t) Alicante (t) prices (t) euro (t) Rent (t) Housing

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