The final data of Consumer Price Index (CPI) for April closes in the 8,3%, as published by National Statistics Institute (INE)one tenth less than the advanced data for the fourth month, and up to 1.5 percentage points less than the record reached last March, when the inflation rate reached 9.8%, the highest in the last 37 years.
This ‘moderation’ of the CPI at the year-on-year level has been due to the decrease in the prices of electricity and fuel, but the increases in the prices of food or restaurants, among others, have continued.
Since last March 30, to the leases that they have the annual renewal of the contract linked to the CPI they will not suffer these increases linked to inflation at maximum rates. Among the measures to combat the economic effects of the war in Ukraine, the imposed Government has imposed a limitation on increases from the Competitiveness Guarantee Index (IGC), which it currently sits at 2%. A measure that will be maintained until June 30, when the Executive expects inflation to have dropped.
For families who are now looking for a new rental home, the prices of the leases that can be found in the market have varied in different ways depending on the city that is analyzed. With the data from the last rental price report of idealista, the real estate Marketplace of southern Europe, rentals increased in Spain by 1.1% year-on-year on average in April. But the situation is quite heterogeneous among the provincial capitals.
On the one hand, 11 cities have recorded median rent increases above the rate of inflation April of 8.3%. The most outstanding have been Zamora (15.5%), Barcelona (13.5%), Cuenca (11.6%), Valencia (11.5%) and Huelva (10.9%), all above the two digits. In fact, these increases have meant that the Castilian Leonese, Castilian La Mancha and Valencian capitals reached their maximum rental awards in the idealista historic series since 2007, where a total of 18 capitals broke rental price records last April. The Catalan capital is the most expensive city in Spain to rent with its 16.5 euros/m2/month of April.
Together with these five cities, they continue with increases in income above the CPI in Almería (9.7%), Ávila (9.5%), Alicante (9.4%), Málaga (8.9%), Huesca ( 8.8%) and Girona (8.7%). All of them, except the capital of Malaga, have reached maximum rents at the end of April.
On the opposite side, Up to four capitals have seen the prices offered for rent drop in León (-0.1%), Granada (-0.8%), Teruel (-1.5%) and Ourense (-2%). Meanwhile, they have barely risen in Pamplona (0.3%), Palencia (0.4%) or San Sebastián (0.9%). Donosti remains in the top 3 for rents plus wings with its 14.9 euros/m2/month.
Of the rest of the provincial capitals, 25 of them have registered increases in rents between 1% and 5% year-on-year, where the markets of Vitoria (4.9%), Madrid (4.7%), Las Palmas de Gran Canaria (2.8%), Bilbao (1.9%), Zaragoza (1.7%) or Seville (1%).
The remaining eight capitals reached increases between 5% and the inflation rate of 8.3%, such as Segovia (7.4%), Palma (6.9%) or Santander (6.7%).
