Buy a home or rent it. It is the dilemma that many people face when they become emancipated, rent and think about purchasing a house or move to live somewhere else. What is more profitable? Buy the home you are going to live in or rent it?
The number of years of rental that are necessary to purchase that same house is one of the indicators that can help the most when choosing one option or another. And in Galicia, at least in the big cities, the best, at the moment, is renting. A Coruña is the third capital of a Spanish province; Ourense, the fifth, and Pontevedra, the eleventh, where it is more interesting to rent a house than to acquire it, since the years of rent that are necessary to own a property are among the highest in all of Spain, according to a report published yesterday Idealistic.
The real estate portal uses the PER indicator to prepare this data, which measures the relationship between sales and rental prices. Thus, if the years of rent that should be allocated to the purchase of a home are many, it is better for the person to establish themselves as a tenant than to purchase it, since the sale prices are higher than the rental prices, and vice versa.
According to this indicator, the city of A Coruña is the third in the country where it is better to rent than to buy, since 21.5 years of paying the lease are necessary to become the owner of that same home. There are only two provincial capitals that exceed this figure: San Sebastián with 26.8 years and Palma de Mallorca, with 22.4. AA Coruña is followed by Barcelona, with 21.3 years; Ourense (fifth position), with 21.2; and Madrid, with 21.2 years as well.
Above the 20-year range, there are also Bilbao (20.3), Pamplona (20) and Vitoria-Gasteiz (20). Cádiz (19.9) and Pontevedra, which occupies eleventh position, with 19.7, are close to 20 years old. The city of Lugo also appears among the top 20 with 17.1 years.
On the other hand, the provincial capitals where it is more profitable to buy a home than to rent it, according to the PER indicator, are Lleida (11.4 years), Murcia (12.3), Huelva (12.6), Santa Cruz de Tenerife (13.4), and Almería (14.5).
To establish these figures, the sales and rental prices of the properties are related. Hence, if the years of rental that should be allocated to the purchase are many, it is because the sales prices are high in relation to the rental prices. And on the contrary, if the years required are few, the sales prices are low when compared to those of leases.
Higher prices
For this reason, the capitals with the highest prices to buy a home, such as San Sebastián, Palma, A Coruña, Barcelona, Madrid or Ourense, require a greater number of years of income. And they would be more interesting to rent than other cities with cheaper figures where the index shows that sales prices are low for the level of rentals.
A study by the appraiser Tinsa, published earlier this year, indicated that Galicia had closed 2021 with a record increase in housing prices, greater than the 10% that the city of A Coruña led with 10.7%. The revaluation in the capital of A Coruña was the fifth highest nationally.
In addition, it is the sixth city that is closest to the maximum price reached in the real estate boom. Of the other five, three are tourist destinations (Málaga, Santa Cruz de Tenerife and Palma de Mallorca) and the other two are cities with great real estate activity (Madrid and San Sebastián). All of them are at the top of the ranking of cities that are more profitable to rent a house than to buy one due to the high housing prices.
The raw materials crisis causes a hundred tenders to remain void
Almost a hundred tenders have been deserted in Galicia due to the rise in raw material prices. According to data collected by the National Construction Confederation (CNC), a total of 96 public tenders, totaling a total amount of 50.4 million euros, have been left empty in the Galician community due to the impossibility of the construction companies. address projects with prices set by public administrations. The largest tendered work that has been void amounts to 4 million and the average amount per public work void is 214,000 euros. Galicia is the second community with the highest number of projects that have been deserted because the tenders did not collect the new prices for the materials. The first place goes to Catalonia, with 200 deserted tenders for more than 50 million. After Galicia, Andalusia (46 tenders), the Valencian Community (32) and the Basque Country (24) appear. In the Canary Islands, however, no work has been left empty. At the national level, the rise in the cost of raw materials has already caused the paralysis of almost 500 works for a combined value of 230 million. The largest tendered work that has been void amounts to 37 million and the average amount per void public work is 475,000 euros. In total, there have been 484 works whose execution has been left without companies to take it on, of which 35, 7%, have a budget of more than one million euros.
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