Source: El Periódico
Catalunya leads launches related to LAU and foreclosures
The houses incorporated into the Barcelona rental park fall to minimum since 2007
Experts insist that we can not speak of a bubble in the rental market in Spain, but the truth is that the data of that market that is known month after month point to a clear overheating, particularly in the cities with the most demand. The eviction figures included in the General Council of the Judiciary (CGPJ) abound in this dynamic. Releases derived from unpaid rent continue to grow, while those related to foreclosures decrease (due to non-payment of a housing loan). Between July and September of this year, they increased for the fifth consecutive quarter, by 7.9%. On the other hand, foreclosure releases declined for the thirteenth consecutive quarter and, in this quarter, they did so by 16.2%.
The number of evictions made in the third quarter of 2018 was 11,547, which represented a decrease of 0.3% with respect to the same period of 2017, according to the study the ‘Effects of the economic crisis on the judicial bodies’, which has published this Monday the statistics section of the CGPJ.
Of the total number of launches, 7,518 were the result of the procedures derived from the urban lease law (LAU). This amount represents 65.1% of the total, while another 3,404 (29.5%) were derived from foreclosures. The remaining 625 launches were due to other causes. In fact, the data collected clearly point to the end of the year with the highest volume of evictions related to rent in recent years. Adding the three quarters accounted for so far, the number of launches reached 27,728 through September. If in the last quarter of this year there were more than 9,000 expulsions recorded in the last quarter of the previous year, the final result would be close to 37,000, only exceeded in 2013, in full crisis.
The pressure of demand
By communities, geographical areas with a higher demand are kept ahead. Catalonia, with 2,531 evictions, 21.9% of the total Spanish, was, by far, the community in which more launches were practiced in the third quarter of 2018, followed by Andalucía (1,894), Comunidad Valenciana (1,575) and Madrid (1,238). Attending only the launches resulting from procedures derived from the LAU, in first place also appears Catalonia, with 1,738 processes (23.1% of the national total); followed by Andalucía (1,034), Comunidad Valenciana (1,575) and Madrid (1,238). Catalonia, on the other hand, also heads evictions derived from foreclosures with 1,639; followed by Andalucía, with 1,114; Valencian Community, with 1,108; and Murcia, with 370.
The data underline the trend of the market, in which leasing operations increase more rapidly than those of home purchases, where the tightening of financing conditions hinders access to purchase and diverts to the rental market those who can not. access the property. This trend causes an increase in prices and a reduction of the park in the areas most in demand.
In this environment it is explained that the housing rental park in Barcelona during the first three quarters of 2018 is the lowest since 2007, the first year of the housing crisis and in which the Chamber of the Urban Property of Barcelona has data of the market, according to the body’s announcement on Monday. Since the beginning of 2018 until today, only 2,068 homes have been incorporated into this park, a fact that is obtained from the difference between signed and canceled.
The figures are explained by the increase in the purchase price of homes in the city, which makes it more attractive (from the point of view of the offer) to sell a flat than to rent it. The stabilization of rental prices and the expectations of control and regulation of the Barcelona market are also factors that explain, according to Òscar Gorgues, manager of the Chamber, the low incorporation of new homes in the rental park. The number of new homes incorporated into the park is less than half of the 5,992 that were added to the total stock in 2007 and a third of the 6,327 homes that were added to the park in 2016.
The price goes up 5%
The agency highlights that the 13,272 new rental contracts registered in Barcelona by the Incasòl during the third quarter of 2018 reflect an average rental price of 948.86 euros, which represents an interannual variation of 5.03%. However, regarding the average price per square meter, the rent remains stable at 13.61 euros and does not change year-on-year.
This is explained by the fact that the average area of the rented homes has been higher than that of the same period last year. The implementation of the rental market by districts during the third quarter of 2018 highlights that the highest average rent is that of Sarrià-Sant Gervasi and the cheapest Nou Barris. The districts that experience more significant growth are Ciutat Vella (8.53%) and Nou Barris (7.94%) and the more stable Sant Martí (1.97%).