Property rental becomes firmly established in Spain (in 10 years 1 million more properties rented)

Property rental becomes firmly established in Spain. The recent years of economic crisis have finally established renting as a real alternative to property ownership. But, how has all this affected the market? Have prices fallen or risen?

 

Lower IVA from 16 to 7% for rentals with option to buy

Pressure from the real estate sector has forced the Treasury Department to consider lowering the IVA tax from 16 to 7 percent for tenants with rental contracts including options to buy, said Cinco Días.

 

Will legal changes boost the rental market?

According to El Boletín, in a debate on the Law Project in Congress, Minister Beatriz Corredor said, "the proposed law offers considerable and reasonable solutions for owners of rental properties in resolving, without undue delay, rental conflicts, while recalling that a strong climate of trust would help reduce the often excessive guarantees, endorsements, and deposits asked of tenants."

 

Expert Economists Advocate Strengthening Rentals

Economists of the Spanish Studies in Applied Economics Foundation, FEDEA, have published an interesting study reported in many media sources titled "For a Rental Market that Works: A Proposal for Structural Reform."
 

Construction contractors not profiting from rentals

Hopes for contractors to profit from the rental market have been dashed, said El País Negocios on March 15, 2009.
 

BBVA says it is better to rent than to buy an apartment

According to a recent BBVA report, today's economic conditions are less favourable to home buying than they were a few months ago. Restrictions on credit, expectations of drops in property prices, and an oversupply of housing now tilt the balance of buying versus renting a home in favour of renting.