Cáceres housing: Rent rivals mortgage costs

Cáceres housing: Rent rivals mortgage costs

In Cáceres, Spain, renting an average flat now costs the same as paying a mortgage for a similar property. The monthly rent for a 90-100 square meter apartment is around 700 euros, while the average mortgage payment for a 150,000 euro property falls below that figure. Industry data shows the difference is between 8 and 20 euros a month, with rent already higher. The Extremadura city has run out of rental stock, and prices have risen by 50% in less than two years.

Vanishing supply

Francisco Ingenieros, president of the Official College of Real Estate Agents (COAPI) of Cáceres, states bluntly: "These prices have never been seen in the city." Supply has dropped to a minimum that no longer guarantees sector activity. Students arriving each year cannot find four-bedroom flats for under 700 euros, and single rooms have skyrocketed to 600 euros, the price of a whole flat just two years ago.

Turnover has stalled. Contracts signed since 2020 continue with the same tenants. Landlords with good tenants do not want risks; tenants do not move because they know the market state. Contracts are renewed on terms more favorable than those applying after the Housing Law came into force in May 2023.

Law intended to protect but increased costs

The real estate sector points directly at the Housing Law. In effect since May 26, the rule includes excessive protection for non-paying tenants: a delinquent tenant can stay up to five years without leaving or facing legal consequences. They argue this breaks market balance. Additionally, the law requires only the property owner to pay agency fees, rendering the agent's mediation work pointless.

As a result, some properties have left the rental market. Some closed, others rent only to acquaintances, some were sold, and others became tourist apartments, offering higher returns and lower risk. The conclusion is universal: less turnover, less supply, and higher prices.

Why agencies abandon rentals?

Half of the agencies in Cáceres province have decided to stop renting flats and focus on commercial premises, warehouses, land, or sales. The reason is simple: they cannot charge tenants fees, and owners are not always willing to pay them. Without income, the business disappears. Conversely, sales are picking up as buying becomes more profitable than renting.

The problem particularly hits professionals moving to the city for work: healthcare workers, teachers, civil servants. Finding a standalone flat is impossible; many choose nearby municipalities like Casar de Cáceres, Sierra de Fuentes, or Malpartida de Cáceres. Sharing a flat is common, but even a room has become a luxury.

Map of scarcity

The cheapest rental areas in Cáceres are concentrated around Pinilla and San… [original article cuts off here]. Published by El Periódico Extremadura, the news reflects warnings from real estate colleges before the law took effect. Their predictions came true: the rule had effects "contrary" to its aims.

Meanwhile, the city officially loses population, yet properties convert to tourist apartments. The contradiction is clear: fewer residents, less available housing, and rising prices. This cocktail leaves Cáceres without rental turnover and raises a question: who will afford living in the city center?