THE cost of buying and renting properties in Spain is falling as a result of the coronavirus pandemic, a study has said.

A new report from the College of Notaries said prices have dipped by 5.7% compared to the previous year as sellers lowered expectations amid a swelling housing stock.

It comes as online portal Fotocasa, found that the he average budget for rent declined 6.4% in Madrid and 11.6% in Barcelona between March and December as pay cuts and redundancies swept the country

rentals mallorca

Although Spaniards took out 6.7% more mortgages in November than in the same month of 2019, the data from College of Notaries showed, mortgages’ average value fell by 2.7%, as property prices dropped, buying power shrank and banks tightened lending policies.

The amount of rental homes available was 78% higher at end-2020 than when the year began,meaning rents in once red-hot real estate hubs like Madrid and Barcelona fell by 7.3% and 9.4% respectively.

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